To run a successful sales team, you need to measure KPIs. This will show the performance of various sales processes that your team uses.
Choosing the right indicators to measure makes all the difference. The right success metrics will show whether your brand is growing or not.
In this article, we will walk you through the top indicators your team should measure.
What Is A KPI, And Which Should I Measure?
KPI is short for Key Performance Indicators. This shows the performance of your brand over time. You can place them side by side with your goals and see if your strategies work. If they don’t, you can switch them up.
These are the important KPIs your team must measure:
1. Sales Volume
The sales volume across your outlets will show where the demand for your products is high or low. Measuring this will show you why this is so and what you can do to improve.
This will help you to switch up your tactics. You can make promotional sales in poor-performance areas to boost sales. Other tactics are discounts, coupons, or samples.
2. Lead Conversion Rate
This is one of the Key Performance Indicators that show how many leads convert to sales. Tracking this data helps you to build a plan to gain more customers.
It helps you determine if your pitches work or if your team needs to switch up. You can also see if you are targeting the right crowd or shooting blanks.
3. Competitor’s Pricing
Knowing the prices of your competitors will help your team build a competitive strategy. Depending on the results, you can decide to offer lower prices.
Also, Check the average retail price of similar products in your industry. It will determine the impact a reduction will have on your business.
Then, prepare your sales team to expect sales objections and how to handle them.
4. Website Conversion Rate
These days, most businesses run a website. The web conversion rate shows the number of prospects that come to your site for some reason.
So, to get a higher conversion rate, optimize your website. Then, watch the analytics on your dashboard to know areas that need improvement.
In all, this will help you to reach your sales goal in a shorter time.
5. Customer Lifetime Value
This is one of the significant Key Performance metrics that shows the worth of each customer. It helps you track how much revenue you will get from the first sale until they stop buying.
With this, you can predict the future revenue of your company. You can also establish how many leads you need to pursue to reach your sales goals.
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Wikipedia describes key performance indicators, KPIs as “A performance indicator or key performance indicator is a type of performance measurement. KPIs evaluate the success of an organisation or of a particular activity in which it engages.“
What Is a KPI Example?
One of the more basic or simple examples of a KPI is Revenue Per Client (RPC). With this example, if your office generates $1,500,000 in revenue each year and has 1000 customers, your RPC is $1,500.
Examples of Sales KPIs
- Total number of new contracts each period
- The dollar value of each new contract signed each period
- Leads in the Sales Funnel that are qualified and engaged
- Time spent following up on sales
- Time spent on conversion on average
- Growth by dollar amount or by percentage
Examples of Marketing KPIs
- Traffic to the website monthly.
- Amount of qualified leads
- The conversion rate for calls-to-action
- Search engine keywords in the top 10 results
- Blogs and e-books posted this month
Choosing The Right Strategy
With Key Performance Indicators, there is no one-size-fits-all. It would be best if you tailored different strategies to meet your specific goals.
We have made the work easier by explaining some of the primary KPIs you need to measure. If you follow the tips in this article, your sales team’s performance will face a turn-around.