All sales teams track key performance indicators (KPIs) — but successful teams know how to choose the right ones and reach goals faster.
Being selective about which sales KPIs to analyze puts your resources in the right place. The data offers all the information you need to maximize revenue, fuel business growth, and keep consumers happy. Here are the 20 best metrics for measuring business performance and unlocking actionable customer insights.
What are KPIs in sales, and why are they important?
A sales KPI is a measurable value indicating how effectively a company works toward its goals. These data points guide sales teams by shedding light on their performance. If the goal is to grow the quarterly sales by 10%, then the team’s quarterly sales are their KPI. The closer they move to 10%, the closer they are to reaching the objective.
KPIs help sales teams and decision-makers track goals, make data-backed choices, and drive growth. But no individual KPI tells the whole story. Think of them like the various tests a doctor performs during a physical. While each is important, the doctor needs multiple tests to build a holistic view of a patient’s health. The same goes for KPIs.
For example, sales per region show how much you sell in a given area but don’t explain why. Observing a concurrent rise in customer retention indicates current customers in a certain area are buying more products, not that you’re gaining traction with new ones. Tracking multiple KPIs simultaneously helps pinpoint the actual behaviors behind different stats.
Combine sales KPIs with other types of KPIs for a clearer view of business health. Production planning KPIs help align manufacturing operations output with the sales teams’ needs. This way, the organization produces the right quantity of each product based on relevant sales data.
Sales performance metrics versus sales KPIs: Key differences
Sales metrics are data points representing specific sales activities or certain processes’ performances, while sales KPIs are the strategic metrics linked to business goals.
Imagine your upsells increased from $500 per month to $1,000 per month last quarter. That’s a sales metric. If the target is an upsell success rate of 10%, the metric becomes a sales KPI. When the current upsell success rate is 9%, you know the team is close to hitting its goal.
20 sales KPIs for sales teams to track
This list of sales KPIs examples can help you identify which metrics to incorporate — whether you’re working on an eCommerce analytics strategy or closely tracking expenses.
You may not need to track all of these metrics. The goal is to choose enough data points for a holistic view of sales performance but not so many that you’re drowning in data. Tracking KPIs should help you, not become another thing on the to-do list.
1. Monthly sales growth
Monthly sales growth tracks the month-over-month percentage increase in sales. It’s a barometer for a company’s short-term performance and growth trajectory, identifying trends and helping you adjust sales strategies in real time. For instance, if sales were $10,000 last month and $11,000 this month, the growth rate is 10%.
2. Average profit margin
This data point highlights the average percentage of revenue that exceeds the cost of goods sold. It sheds light on the overall financial health and profitability of sales, and it’s key to understanding how price strategies and cost control contribute to the bottom line.
3. Customer satisfaction
Customer satisfaction indicates how well products or services meet a target audience’s expectations. High satisfaction levels often correlate with increased loyalty, repeat business, and positive word-of-mouth referrals. Track this KPI through surveys and feedback.
4. Churn rates
Churn rate reveals how many customers discontinue their subscriptions or cut ties with a brand within a given period. Lower churn rates indicate higher customer satisfaction and retention. But a high churn shows that you need to improve product quality, pricing, or customer support.
5. Customer retention rate
The customer retention rate is the opposite of the churn rate. It monitors the percentage of customers who continue to do business with a brand over a specific period. Combined, the churn rate and customer retention rate should equal 100%.
6. Annual contract value
The annual contract value (ACV) calculates the average annual revenue per customer contract. This sales KPI is only relevant for subscription-based services. For instance, if you offer subscription boxes that cost $30 per month, and customers sign 12-month agreements, the ACV is $360.
7. Average cost per lead
The average cost per lead reveals how much you spend to acquire a single lead. The higher the cost per lead, the lower the overall profits. Lower costs per lead indicate efficient marketing strategies and a high return on investment.
8. Customer lifetime value
Customer lifetime value (CLV) estimates the total revenue a company expects from a single customer throughout the relationship. This metric outlines how much to invest in customer acquisition and retention.
9. Average conversion time
Average conversion time measures how long it takes to turn a lead into a conversion (sale). The lower the average conversion time, the faster the sales pipeline.
10. Average age of leads in pipeline
The average age of leads in a pipeline indicates how long a potential customer has been in the pipeline. This KPI often pairs with conversion time to highlight the efficiency of the sales process. A higher average age represents a need to refine sales processes or invest in additional lead-nurturing strategies.
11. Quote-to-close ratio
The quote-to-close ratio tracks the percentage of proposals or quotes resulting in a sale. It sheds light on a sales team’s ability to officially close deals. This metric is common among business-to-business (B2B) brands and consumer sales organizations offering high-value products or services.
12. Average purchase value
The average purchase value represents revenue per purchase. This KPI helps you forecast profits and understand consumer purchasing behavior.
13. Calls and emails per rep
Monitoring the number of calls and emails from each sales rep highlights activity levels and productivity. It identifies high performers and others needing additional training and support.
14. Customer acquisition cost
Customer acquisition cost (CAC) calculates the total cost of acquiring new customers. This figure accounts for the cost of formally acquiring a lead and all other marketing and sales expenses. Keeping the CAC as low as possible maximizes profits on each transaction.
15. Sales by region
Analyzing sales performance across different geographical areas offers valuable insights into market dynamics and customer preferences. This KPI is particularly useful when expanding into new regions or capturing additional market share in existing service areas.
16. Number of monthly onboarding and demo calls
This data point tracks potential customers’ engagement levels — an early indicator of conversion rates and interest in a product or service.
While a high volume of onboarding and demo calls is good, strive to optimize the conversion rate. Many calls and low conversion rates suggest an issue with the closing team’s process.
17. Product performance by revenue
Identifying which products or services generate the most revenue helps you prioritize inventory management and development efforts. Use this information to align production strategy with market demand and improve profitability.
18. Sales opportunities
Sales opportunities reveal the volume of potential sales in a pipeline. This data point helps with forecasting and allocating lead-nurturing resources.
19. Average sales cycle length
The average sales cycle length tracks how long it takes a lead to progress through a sales cycle to a closed deal. A shorter sales cycle indicates more efficient sales processes and faster revenue generation.
20. Average new deal size/length
This metric gauges new deals’ average value and length. Similar to other KPIs, like ACV, this metric is best for subscription brands and high-value goods. It’s less relevant to businesses that deal in lower-value, one-off purchases.
Maximize your sales performance with Fishbowl
Integrating sales KPIs into your inventory strategy requires an intuitive, user-friendly inventory management platform like Fishbowl. Partner with Fishbowl for unparalleled control, insight, and success in achieving KPIs — no matter how you want to get there.
The Fishbowl platform seamlessly integrates with QuickBooks and Shopify, unifying critical business data and streamlining performance monitoring. Schedule a demo today to learn more.