There are increasingly interesting ways to understand whether a business is performing well. After all, we are at a moment when most information can be gathered with far less difficulty than before.
For this purpose, sales KPIs are extremely important. KPI stands for Key Performance Indicators — these are the key metrics of a business. Designed to measure the result of each action executed, they are essential for business intelligence and sales strategies.
Here are the top KPIs every sales operation should track:
1. Opportunities created
One of the most basic numerical indicators is the number of business opportunities generated. To measure it, simply count how many people connected with the company — whether to ask questions or show interest. As the starting point of a sale, this metric gives you a clear picture of the prospect's journey.
2. Proposals made
This is an essentially important point in sales — knowing how many qualified prospects moved to the proposal stage. It is an extremely easy metric to collect, yet it delivers significant business intelligence.
3. Deals closed
Knowing how many people completed a purchase may seem basic, but it is a point that can be overlooked. Many businesses do not have great control of their data and still do not properly track how many sales were closed.
An interesting aspect of this KPI is the possibility of segmentation, you can break it down by region, product line or sales channel to understand performance at a granular level.
4. Visits required
How many visits does a customer need, on average, to complete a purchase? Each context offers a different reality, and some situations require more or fewer visits than others. The average number of visits needed should be tracked as an indicator.
5. Average time to close
The longer a deal sits in the pipeline, the longer the company waits to see revenue. Not only should you track the average closing time, but you should do everything to optimize this KPI for better results.
6. Prospect drop-off rate
There are countless reasons why a potential customer may abandon a negotiation. The drop-off rate, also known as churn rate, helps predict results, set goals and discover improvements to prevent it.
7. Average ticket
No business can sustain itself without knowing its average ticket. Having a clear idea of the average value per sale is essential for forecasting revenue, managing expenses and running the business as a whole.
8. Customer acquisition cost (CAC)
How much do you need to invest to attract a prospect? The customer acquisition cost (CAC) calculates the value required for a qualified lead to become a customer. With your CAC in hand, you can optimize your budget to attract more genuinely interested prospects.
9. Return on investment (ROI)
There is no more objective and effective method of measuring profits than the famous ROI. Knowing how much return an investment delivers allows you to chart sales and marketing strategies to boost results even further.
10. Search engine ranking
The days when people searched classifieds are long gone. Today, search engines have taken their place and must be measured accordingly. Your online visibility directly impacts how many potential customers find your business before they find your competition.
Now that you know the most important sales KPIs, share this article with colleagues who could benefit from these insights!
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