KPI is the key performance indicator; it is only as valuable as the action it inspires. One of the most important aspects of KPIs is that they are a form of communication. Currently, the sales team follows the same rules and best-practices as any other form of communication. Precise and relevant content is much more likely to be engaged and committed.
The most functioning and relevant word in KPI is “key” because every KPI should be related to a particular business outcome with a performance measure. KPIs are often confused with business metrics. Moreover often used in the same context, KPIs need to be defined according to important or core business goals.
The manner of forming the strategy for developing KPIs, your team should begin with the basics and know what your organizational purposes are, how you plan on gaining them, and who can act on this information. This process should include feedback from analysts, department heads, and managers.
SMART criteria are also one of the performance indicators. The letters stand for Specific, Measurable, Attainable, Relevant, Time-bound. In other words:
- Is your objective Specific?
- Can you Measure progress towards that goal?
- Is the goal realistically Attainable?
- How Relevant is the goal of your organization?
- What is the Time-frame for achieving this goal?
Also like today’s businesses are driven by data, and you need to rely on numbers more seriously than ever before. Your KPIs will support decision making, foster performance, boost employee morale, and influence business objectives.
Basically, your goals can fall into two categories: Primary Goal and Secondary Goal. Both of these can be undertaken and considered when measuring the performance of your sales team. In the above example, webinar engagement metrics are secondary because they help you understand what needs to happen in order to unlock the primary goal of driving sales conversions.
Carefully selecting sales KPIs helps you assess the overall performance of your sales within a specified period of time. It is important to remember that KPIs are not a one-size-fits-all concept. You need to define the right metrics for your sales team and measure the growth right from the beginning.
Driving B2B sales growth requires understanding another company’s business process and creating a business-specific strategy that speaks to those in charge of the decision-making process. Therefore, the KPIs you define must align with your strategy and the marketing activities you follow.
Sales KPIs are more than numbers you report out weekly – they enable you to understand the performance and health of your business so that you can make critical adjustments in your execution to achieve your strategic goals. Understanding and tracking the right KPIs will lead you to achieve results faster.
Let’s have a look at the five reasons why KPIs are important:
- To monitor business health.
- To measure progress over time.
- To make adjustments & stay on track.
- To solve problems or tackle opportunities.
- To analyze patterns over time.
Check out the best practices for defining the right KPIs for your B2B marketing and sales teams:
- Choose KPIs that are directly related to your primary and secondary business goals.
- Think huge when forming your KPIs.
- Consider the current state of growth of your company before setting the KPIs.
- Carefully consider both lagging and leading performance indicators.
- Be as specific as possible.
- Create an action-oriented KPIs that lead to sales.
- Keep a mix of contextual metrics and activity-based metrics while selecting the final KPIs.
- Always monitor the performance of your sales team.
If you want to scale your sales team, grow your revenue, and beat out the competition, there’s no question you need to understand data. Now the point arises on how to track and measure the KPI’s during this pandemic and lockdown.
Understanding how to evaluate and calculate a KPI is a matter of describing specific goals. The highly recommended tool for tracking KPIs is Web Analytics. Google Analytics can trace a huge amount of data, from web performance to sales.
Visualizations that can provide deep insights, for example, are a far better way of getting across the important data than dense presentations that provide no interactivity. This becomes particularly important when dealing with multiple KPIs. Visualizations that can provide deep insights are a far better way of getting across the important data than dense presentations.
Check out the essential sales KPIs for high-performing sales
- Monthly sales growth
- Calls and emails per rep
- Sales opportunities created
- Monthly onboarding and demo calls booked
- Lead conversion rate
- Sales by contact method
- Average conversion time
- Customer acquisition cost
- Customer lifetime value
- New and expansion MRR
- Pipeline value
- Sales targets
- Sales by region
- Average purchase value
- Average profit margin
- Retention and churn rates
- Product performance
- Sales rep productivity and leaderboard
It should be noted that KPIs require constant evaluation to ensure they remain relevant and focused on the important parts of the business that need tracking. Tracking and measuring sales KPIs is the most important task of the sales rep. For more details reach us on +1-732-481-9424 or email at email@example.com