5 Trackable Sales Metrics That Can Help Increase Sales Performance

 
Team ThunderAct

When it comes to sales, insight is everything. Sales teams need to understand what strategies and campaigns work and what do not. Measuring sales activities and whether they reached your goals will help.

 

Gathering and collecting sales data will help improve your sales performance. It gives you an idea of your sales team’s productivity, the effectiveness of your sales and marketing efforts, and what you need to refine in your sales process.

 

Identifying the right sales metrics to track for your business requires you to identify what is vital to your business model. Then, align them with the strategic growth initiatives you plan on implementing.

 

To help you get started, here are five trackable sales metrics that can help increase your sales performance:

 

1. Sales Conversion Rate: This will help you track how effective your sales team is in converting leads into clients. The target may vary depending on your company. For instance, if you have low-cost products, your closing target may be higher than those selling luxurious items. While factors may vary, the formula is similar. It is as follows:

 

(Leads converted into sales ÷ Total Qualified Leads) x 100

 

2. Length of the Sales Cycle: This sales metric refers to the average time it takes a new client to turn into a closed deal after being in the opportunity stage. With this, you can figure out if there are any bottlenecks in your company’s sales process. You should also track the time it takes a deal to stay in every stage within your sales process. Doing this will help you find out if there are stale opportunities you need to let go of or if there are actions you can take to make them move forward.

 

3. Win Rate: Win rate is the percentage of deals closed within a particular period. It helps you measure the performance of your sales team. You can calculate the win rate using the following formula:

 

(Total number of won opportunities ÷ Total number of closed opportunities lost and won) x 100

 

4. Quota Attainment: As the name suggests, this sales metric refers to the percentage of deals a sales representative closed compared to the quota they have to attain within a particular period. Your sales cycle will determine whether you measure monthly, quarterly, or annually. The formula to calculate quota attainment is:

 

Number of closed deals or revenue during a particular period ÷ Quota set for that time

 

5. Annual Recurring Revenue: You can measure this annually. It is the total amount of contracted revenue your company gets in a year. This is a vital sales metric that your business should track to let you see how much your company has grown. You can also use it for sales forecasting. The formula for this is:

 

Total Value of a Contract ÷ Number of Contract Years

 

These are only some of the trackable sales metrics you can use to make better and well-informed decisions. You can start with them to find ways to improve your sales performance.

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