One of the pillars of a successful business is its management. Knowing how your company is performing is essential to creating effective strategies and working on what really works.
For professionals focused on converting market opportunities, sales KPIs are the best allies. They accurately show the result of each action taken and the consequences for the business.
If you want to know more about sales KPIs and how to use them in your business, read this post.
We are going to show you the 7 main ones and how they can be applied in your company.
The importance of sales KPIs
How do you track your company’s numbers? Do turkey telegram data you have a long list of indicators or do you simply prefer not to track them?
Some entrepreneurs have the idea of following all the numbers generated by the company, systematically, almost like an obsession. This is not necessary. In fact, it is not recommended!
Maintaining a high number of indicators can lead to a lot of confusion, as well as wasting time with little or no relevant data. In this sense, you should only worry about the essential indicators, the KPIs.
Key Performance Indicator (KPI) is the metric used to monitor the performance of your business. Each company defines its KPIs and the rule is to find out what directly influences the objectives set.
For sales, good examples of KPIs are:
- number of leads generated;
- number of qualified leads;
- conversion rate;
- average ticket;
- CAC (customer acquisition cost);
- number of deals completed;
- sales cycle .
To make each KPI clear, we are going to show them separately and show you how to apply them.
Top 7 Sales KPIs
1. Number of leads generated
Leads are potential customers, those how to find influencers who fit your brand who are interested in the solution your company offers. They must be captured and converted into customers.
Remembering the sales funnel , it is interesting to highlight the number of leads generated as one of the sales indicators to evaluate the performance of marketing actions , the sector responsible for generating opportunities.
With this control, you will be able to observe if the actions at the top, middle and bottom of the funnel are being effective, that is, generating a good number of leads for the sales sector .
To monitor this indicator, you should look for data on potential customers, whether it be newsletter registration , downloaded content, event registrations, etc. This way, you will have a list with the data and the total number of leads generated in a given time.
2. Number of qualified leads
The Buyer’s Journey and the marketing jiangxi mobile phone number list funnel must be built together, in order to create a good path for your potential customers to search for all the necessary information about your products or services offered.
In this way, you will be qualifying the leads, that is, giving them all the necessary knowledge to make the purchasing decision.
Investing in lead nurturing is essential for the sales team to maintain a good conversion rate.
During the discovery, awareness and consideration phases, you will have access to all the data necessary to make a purchasing decision with the sales team.
To monitor this metric, you need to calculate how many potential customers you and your team sent a sales proposal, such as a quote , to .
3. Conversion rate
Conversion rate is one of the most important sales KPIs. It measures the efficiency of your team by comparing the number of opportunities generated to those that will actually be converted into sales.
This indicator makes it possible to identify the best strategies. You can use A/B tests and evaluate the results. This way, you define with numbers the actions that should be taken by the sales team.
To calculate the rate, simply divide the number of orders by the number of opportunities generated, then multiply by 100 to find the result as a percentage.
4. Average ticket
The average ticket is the indicator that demonstrates the behavior of customers with the brand, that is, it shows the average expenditure per order.
It is one of the main sales KPIs, as it is directly related to the company’s turnover. You can draw up strategies to increase the average ticket. Some examples are:
- offer progressive discounts;
- free delivery from a certain value;
- create product combos;
- among others.
To measure the average ticket, simply divide the total billing by the number of orders generated.
5. CAC
Customer Acquisition Cost ( CAC) is another important KPI. As the name suggests, it weighs the entire investment made until a consumer becomes a customer.
To know this indicator, it is necessary to raise all the investment made, from marketing actions to sales expenses.
With this data, you need to check how many customers were generated in the time period studied. Then divide the total investment by the number of new customers.
This indicator allows you to analyse whether a particular customer acquisition strategy is worthwhile or not. If the CAC is higher than the average spend, it means that you are investing more money to acquire a customer than they are actually spending on the purchase. In other words, danger!
6. Number of deals closed
It is important to know the number of businesses closed in a given period in order to create goals .
It is worth highlighting that this indicator on its own is not as representative as when it is combined with others — such as the average ticket — and can become even more important for sales strategies .
A good example is comparing two sellers and checking the number of deals closed and the average ticket.
Perhaps a salesperson who cares about working better with the lead, investing more time with him, can achieve a higher order value.
7. Sales cycle
Our last indicator on the list of key KPIs is the sales cycle. It determines the time it takes for a person to make a purchase from the company from the first contact.
Its importance lies in the fact that the shorter the cycle, the more clients can be sought by the team, increasing profits.
If the sales cycle starts to increase too much, it may mean that marketing is not being very informative, which makes it necessary to nurture leads to reach the purchase decision.
KPIs and increasing sales
As we saw in this post, it is very important to create and track the main sales KPIs of the business. It is not good to create an extensive list of KPIs. That would only generate a lot of work and little focus.
The first step is to define the business objectives. From there, check what directly interferes with that objective.
With sales growth in mind, the indicators we have mentioned allow efforts to be concentrated on the techniques that bring better results, increasing the efficiency of the entire team.
In this way, the company grows, becomes a reference in the market and professionals achieve the long-awaited success.