7 Sales KPI for Boosting B2B Sales [2018]

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Klozers Sales Consulting 7 Sales KPI for Boosting B2B Sales [2018]

7 Sales KPI for Boosting B2B Sales [2018]

Sales KPI (Key Performance Indicators) are a must have to manage any sales team, drive efficiencies and improve sales performance.  However the wrong Sales KPI can sometimes drive the wrong sales behavior, which leads to lots of sales activity, but little in the way of sales results.  Whether your Business is a Startup or you are running an experienced Sales Team and looking to increase existing sales revenues and margins, then Sales KPI are quite simply a must have, that you cannot afford to do without.  These KPI can often be easily reported via your existing CRM, or in some cases can be generated as a “Dashboard” for ease of access.  The figures are typically generated on a weekly or bi-weekly basis, and are the milestones that will enable you to check you are on track to reach your Sales Goals.

SALES KPI

1. LEAD CONVERSION RATIO

DEFINITION
WHY IT IS IMPORTANT

The ratio of the number of Leads that convert to a qualified Opportunity.

Not every lead is qualified to become an oportunity. Measuring how many leads turn into real opportunities allows us to double check our Lead Generation is effective.

2. SALES CONVERSION RATIO

DEFINITION
WHY IT IS IMPORTANT

The ratio of the number of Opportunities that convert to actual Sales Orders.

Measuring how many opportunities your sales team converts to real orders helps us identify areas for improvements.

3. SALES CYCLE

DEFINITION
WHY IT IS IMPORTANT

The length of time from first contact through to order placed. Sometimes referred to as "speed of the pipe".

Measuring how many opportunities your sales team converts to real orders helps us identify areas for improvements.

4. KEY SALES ACTIVITY

DEFINITION
WHY IT IS IMPORTANT

The number of sales calls historically required to reach sells goals. This could be telephone calls or Field Sales Visits.

Little or not enough of the right Sales Activity will heavily impact your sales figures.

5. ESTIMATED VALUE OF THE SALES PIPELINE

DEFINITION
WHY IT IS IMPORTANT

The total value of the sales pipeline broken down into monthly figures.

No pipeline means you simply will not hit your sales targets.

6. AVERAGE ORDER VALUE

DEFINITION
WHY IT IS IMPORTANT

The average value of each order received during the previous month.

Average Order Values need to be going up to increase revenue and margin.

7. PRODUCT SPLIT

DEFINITION
WHY IT IS IMPORTANT

The product split goal set by Sales Management.

If you have more than one product or service you need to make sure your sales people are selling everything.

HERE ARE 2 BONUS SALES KPI'S FOR YOU

8. CUSTOMER CHURN

DEFINITION
WHY IT IS IMPORTANT

How many customers are leaving - usually measured monthly or annually.

If your churn exceeds your acquisition rate then you will run out of customers and revenue fast.

9. COCA

DEFINITION
WHY IT IS IMPORTANT

Cost of Customer Acquisition

Once you know your COCA and the Lifetime Value of a Customer you can ramp up your growth.

7 Sales KPI for Boosting B2B Sales [2018]

There are obviously many different Sales Metrics that you can monitor, depending on your business and circumstances, but using these 7 sales KPI as a starting point, will give you a solid foundation from which you can build.  As the famous American Manufacturing Consultant W. Edwards Deming said “If you can’t measure it, you can’t manage it”.  That means we need to measure sales with the same discipline as our financial accounts.  Without any measurement of Sales KPI it is not possible to manage any Sales Team and your success will be limited.  The 7 Sales KPI listed will allow you to measure progress on a week by week basis and allow you to make any necessary changes to improve the performance of your sales machine.

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Summary
7 Sales KPI for Boosting B2B Sales [2018]
Article Name
7 Sales KPI for Boosting B2B Sales [2018]
Description
Discover the Top 7 sales KPI's that you can use to track the performance of your sales people and why they are important.
Author
Publisher Name
Klozers
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