Here are the Key Performance Indicators (KPIs) that every sales leader needs to be tracking to measure the effectiveness of their sales teams.
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Lead to Opportunity Conversion Ratio
Ratio of leads that convert to qualified opportunities.
Not all leads are qualified. Measuring how many leads turn into real opportunities allows you to check the effectiveness of different lead generation activities.
Opportunities to Sales Conversion Rate
Ratio of opportunities that convert to orders.
Measuring how many opportunities your sales team converts to real orders helps to identify areas for improvement.
Sales Cycle Length
Time from lead to order
By tracking the number of days it takes for a lead to turn into an order, sales leaders can look for areas to improve the productivity of their sale funnel and see which sales reps are taking longer than others.
Key Sales Activity
Number of calls, meetings or emails achieved each month
By tracking sales activity, leaders can see if reps are doing enough of the right activities to reach targets. KPIs can be further broken down into whether the call was answered, the amount of time spent on the call, if the email was opened or replied to, and actual meetings/presentations delivered.
Estimated Value of Sales Pipeline
The estimated total value of current opportunities
By regularly reviewing the total value of individual reps’ pipelines, leaders can identify possible gaps in reaching targets and create action plans to ensure they do.
Average Order Value
Average value of each order received
By tracking average order value leaders can see where there’s room for upsells and if certain reps consistently give large discounts.
Tracking how well some products sell over others
Team leaders can notice trends of certain products, as well as possible reluctance or difficulties reps, might have to sell other products. This KPI can also point out the possible competition in the marketplace or the positive effects of marketing efforts.
- Tom Abbott is the author of 'The SOHO Solution' and 'Social Selling' and the creator of the online sales training platform SOCO Academy. Sales leaders engage Tom for his proven solutions to building high performance sales teams that exceed targets and for motivational keynotes that energise their audiences.