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Sales KPIs to Track: 20 Metrics Every Sales Leader Needs
optymyze.com
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Activity metrics measure the inputs to selling. They are most useful for early-funnel roles (sales development representatives, business development reps) and for diagnosing why a quota-carrying rep is missing the number. “The total count of outbound touches per rep per period, typically split by channel (calls, emails, social outreach, in-person visits for field roles).” Meetings booked.The count of qualified meetings or discovery calls scheduled by the rep in a period. The most direct measure of SDR or BDR productivity, and a useful leading indicator for account executives in motions where the rep generates their own pipeline. Define qualified meetings narrowly (a real prospect, on the calendar, with a stated agenda) so the number does not inflate.
Pipeline velocity.A composite metric calculated as the number of opportunities multiplied by average deal size multiplied by win rate, divided by sales cycle length. The single best diagnostic for how productive the pipeline is in dollar terms over time. Pipeline velocity declining while pipeline coverage holds steady usually means deals are stalling later in the cycle. “The total revenue produced per fully ramped sales rep in a period.” Comp cost as a percentage of revenue.The total variable compensation paid to the sales team as a percentage of bookings or revenue produced. Many B2B sales organizations operate within ranges roughly between 10 and 25 percent depending on motion, deal size, gross margin, and pay mix. Outliers in either direction are worth investigating: very low ratios can signal an under-incented team or a comp plan that lags the market; very high ratios usually mean the comp plan is paying for activity that does not translate into the company’s revenue plan. For the commission math underneath, see how to calculate sales commission.
Pipeline velocity.A composite metric calculated as the number of opportunities multiplied by average deal size multiplied by win rate, divided by sales cycle length. The single best diagnostic for how productive the pipeline is in dollar terms over time. Pipeline velocity declining while pipeline coverage holds steady usually means deals are stalling later in the cycle. “The most useful efficiency metric for evaluating team-level scaling; a team that grows headcount without growing productivity per rep is hiring its way to the same revenue rather than improving the motion.” Comp cost as a percentage of revenue.The total variable compensation paid to the sales team as a percentage of bookings or revenue produced. Many B2B sales organizations operate within ranges roughly between 10 and 25 percent depending on motion, deal size, gross margin, and pay mix. Outliers in either direction are worth investigating: very low ratios can signal an under-incented team or a comp plan that lags the market; very high ratios usually mean the comp plan is paying for activity that does not translate into the company’s revenue plan. For the commission math underneath, see how to calculate sales commission.
Customer acquisition cost (CAC).The total sales and marketing investment required to acquire one new customer in a period. Calculated as fully loaded sales and marketing cost (salaries, commission, tooling, programs) divided by new customers acquired. CAC trending up without a matching increase in deal size or retention is usually a sign that the team is reaching less-qualified prospects or competing against more discounting. “The time required for the gross profit from a new customer to repay the cost of acquiring them.” Pipeline velocity.A composite metric calculated as the number of opportunities multiplied by average deal size multiplied by win rate, divided by sales cycle length. The single best diagnostic for how productive the pipeline is in dollar terms over time. Pipeline velocity declining while pipeline coverage holds steady usually means deals are stalling later in the cycle.