sales KPIs to focus on

Sales KPIs That Your Company Should Be Focused On: Definitions and Examples

Data is the foundation of high-performing sales teams’ success. Sales leaders have access to a wealth of data from customer relationship management (CRM) and enterprise resource planning (ERP) systems, whether the goal is to increase revenue, optimize profits, expand the sales team, or outperform the competition.

The aim is to discover the most relevant data points and KPIs, understand the results and take necessary action to meet or exceed sales targets. Here are sales KPIs to focus on to achieve a high conversion rate, client lifetime value, and average deal size are efficient methods to achieve this.

While sales managers employ high-level, holistic KPIs to present a comprehensive picture of the sales team’s performance, sales reps often focus on more tactical sales KPIs. A sales manager, for example, may want to reduce the sales cycle or boost the value of the pipeline. On the other hand, a sales representative may concentrate on the number of meetings arranged or deals done to reach the quota. The effectiveness of converting KPIs into tangible objectives can have a substantial influence on a company’s financial performance, regardless of the department or role within the team.

What Are Sales Key Performance Indicators?

sales cycle

Sales KPIs convert raw data into vital business indicators used to assess an individual’s, department’s, or company’s performance versus goals and their effort’s success. They can be linked to financial data, business activities, or individual and team progress. Businesses use best sales KPIs to evaluate, enhance and optimize the sales cycle sales team performance and increase revenue.

The significance of sales KPIs

Sales teams and leaders utilize key performance indicators (KPIs) to track progress toward goals. Without KPIs, salespeople and managers may be confused about whether their efforts produce the expected results or if the team should alter its strategy. KPIs are also utilized to spot new themes and trends.

Based on the key performance indicators (KPI), sales management can discover underlying issues and take action to resolve them. Let’s say if a new product outperforms expectations, additional resources may be devoted to selling it. However, if a product underperforms because of competitive pricing pressure, the sales team may consider cutting prices or shifting attention to a different product.

Sales KPIs also provide visibility into individual and team performance, helping managers to verify that team members are doing everything they can to accomplish targets. Monitoring sales KPIs closely provides leaders with a clear picture of where the company is headed.

Best Sales KPIs to Focus on

Here are some of the best sales KPIs to focus on, along with their sales KPI definitions:


Revenue is a measure of the total amount of money earned from sales. It is regarded as one of the most critical metrics for any business because it directly impacts the bottom line. Revenue can be measured monthly, quarterly, or annually and broken down further by product, region, or sales channel. Businesses can identify areas for growth and areas for improvement by tracking revenue.

Sales growth

The increase or decrease in sales over a specific period is measured as sales growth. It can be measured year over year, quarter over quarter, or month over month. This metric assists businesses in determining the overall health of their sales and identifying trends and patterns. A positive sales growth rate indicates that the company is expanding, whereas a negative rate indicates declining sales.

Close rate

The close rate compares the number of deals closed to the number of deals pursued. It is a critical metric for understanding your sales team’s effectiveness and identifying areas for improvement. A high close rate indicates that the sales team is effective at closing deals, whereas a low close rate suggests that there may be problems with the sales process or the sales team’s skills.

Lead Conversion rate

The lead conversion rate is the percentage of leads that become customers. This metric should be tracked to determine how effectively your sales team converts leads into paying customers. A high lead conversion rate indicates that the sales team effectively converts leads into customers, whereas a low rate suggests that there may be problems with the sales process or the team’s abilities.

Customer retention rate

Customer retention rate is the percentage of customers who return to make another purchase. This metric must be tracked to understand customer satisfaction and identify areas for improvement. A high customer retention rate indicates that customers are happy and loyal, whereas a low rate suggests that there may be problems with the product or customer service. retention rate

Average deal size

The average deal size reflects the average value of a transaction. This metric must be tracked to understand your sales value and identify growth areas. A high average deal size indicates that the company is closing large deals, whereas a small average deal size suggests that the company is closing smaller deals.

Sales cycle length

The sales cycle length is the amount of time it takes to close a deal. This metric should be tracked to understand the effectiveness of your sales process and identify areas for improvement. A short sales cycle length indicates an efficient sales process, whereas a long sales cycle length indicates that there may be issues with the process or the team’s skills.

Sales per salesperson

The amount of sales generated by each salesperson is measured as sales per salesperson. This metric must be tracked to understand individual salespeople’s performance and identify areas for improvement. A high sales ratio per salesperson indicates that the salesperson is performing well, whereas a low ratio indicates that the salesperson may require additional training or support.

Gross Margin

Gross Margin is a metric that calculates the profitability of each sale. It computes the difference between a sale’s revenue and its cost of goods sold. This metric assists businesses in determining product profitability and identifying areas for improvement.

Sales by channel

Sales by channel assess the efficacy of various online, in-store, and phone sales. Businesses can identify the most effective channels and allocate resources accordingly by tracking this metric.

Sales by product

Sales by product assess the performance of each product or product line in terms of sales. Businesses can identify the most popular products by tracking this metric and allocating resources accordingly.

Sales by region

Sales by region assess the performance of various geographic areas in terms of sales. By tracking this metric, businesses can identify the most successful parts and allocate resources accordingly.

Lost sales

The number of deals lost to competitors is measured by lost sales. It aids in determining why values were lost and taking action to avoid future losses.


Companies must identify and prioritize the best sales KPIs aligned with their business objectives. A sales team can focus its efforts on its primary objectives by selecting specific, relevant, measurable, achievable, and timely (SMART) sales KPIs.

By tracking and monitoring these key metrics with customer relationship management (CRM) software, businesses can gain valuable insights into their sales performance and make data-driven decisions to drive growth and improve overall performance. You need the right sales KPIs to focus on and implement a tracking and measuring system to be successful.

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