Your sales reps aren’t going to spend all their time closing deals. They also get involved in non-revenue-generating tasks as well. So, how would you track the performance of your reps? For this, and to know the efficiency of your sales process, you need to consider certain Key Performance Indicators (KPIs) that can give you the answers.
Let’s deep dive into the KPIs that you should measure.
The Most Important KPIs to Track for Sales Reps
This is a measure of the sales activities taken up by your reps in a specific amount of time. It can be, the number of calls, emails, or meetings scheduled, and you can track the performance and productivity of each of your reps using this KPI.
You can further narrow it down by considering if the calls were answered, emails opened, the amount of time spent on calls, and the total number of prospects discovered.
Sales opportunity shows you which are the prospects that have a better chance of converting into a lead. In this KPI, you can segment the prospect based on the purchase value and can prioritize your efforts accordingly. Also, you’ll get information on the activities that are actually working for you, and who are the top-performing reps and motivate the reps who would need to step up.
Sales Cycle Length
While some of your sales reps may be closing deals in a shorter period of time, others may take a little longer. Evaluate each sales cycle length, and understand which ones work the best for you. Also, it’s important to check if the deals are really successful in the longer run. If your reps close deals on a short period of time, but the customers churn often, then you’ve to find out whether the longer sales cycle would yield better results. By using this KPI, you can set sales targets, forecast revenue, and identify the timeframe, and resource requirements to close the deal.
Sales per rep
Sales per rep show you the number of deals closed by each rep. This is also helpful in determining their strengths and weaknesses and establishing the baseline for your reps. While creating a baseline, ensure that you consider the differences between reps, namely the seniority, location, etc. As a best practice, you can combine the average conversion time and customer retention rate when you review this metric.
Customer conversion rate
This KPI defines the number of contacts that have converted to sales. Existing customers, past customers, or qualified leads who are related to your business in any way, all can be called a contact. You can also evaluate customer relationship management using this KPI.
It is the number of wins in dollar value, which includes a deal that’s closed, and a committed sale during a specific period of time. This can be further divided into booking per employee, bookings per region, etc.
Average selling price
The average selling price shows you the average purchase value of each sales transaction. This metric allows you to create sales growth strategy, revenue projections, and forecasting, and by studying the purchase behaviors of your customers, you can develop strategies that will eventually increase your revenue.
New and Growing MRR
MRR is another important metric to consider for your business. New MRR is the measure of any additional recurring revenue that you’ve got in a month. The job of a sales rep isn’t over once the deal is closed. What’s even more crucial is to upsell or cross-sell to your existing customers, and this is exactly what’s called an expansion MRR.
Customer Lifetime Value
This KPI helps you calculate the total amount you expect to earn per customer. The longer you have paying customers, the better it is for your business. And, it measures the true impact of a deal closed.
Customer Churn & Retention Rates
Reps have to keep a track of these two metrics once the deal is closed. Churn defines the number of customers who’ve stopped using your product/service. This also highlights the areas on which you’ve to work on to retain your customers and the realistic picture of your retention strategy.
You can not lead the race in the current market without knowing how to utilize data. Sales metrics and KPIs give you numbers that would help you make better decisions, close more deals, and go on to attain your revenue goal regularly. These also help your sales team to measure their performance, how they’ve faired, and the areas they need to work on. Also, if you're looking for a way to seamlessly track performance of your sales team, book a demo with us today.