For sales leaders, keeping tabs on industry performance standards is essential to not only measuring internal performance but also comparing your sales teams to competitors. With the right sales KPIs, your team can forecast their performance and create a clearer picture of where your sales stand compared to where they need to be.
We’ve surveyed the industry and come up with five of the top sales KPIs your team should be measuring, why those particular KPIs offer value to your sales team, and how you can improve their usefulness.
According to the responses from the 2024 Sales Engineering Compensation & Workload Report, there are a few key sales metrics you should keep an eye on in 2024.
While you may be tracking some sales KPIs already, keeping up with industry trends can help you better understand and compare your team’s performance to the competition’s. In order based on frequency of measurement and reflected priority, the top five metrics are as follows:
In sales, money talks. That’s why the most commonly measured sales KPIs are closed revenue and annual recurring revenue (ARR). Closed revenue shows a clear picture of the impact your sales team had on your brand’s bottom line as a whole or on an individual basis.
Measuring this KPI shows teams how their sales are increasing or decreasing over time, however, that is only one piece of the puzzle. This KPI can be even more powerful when used in tandem with more qualitative sales metrics to get a better look into your process rather than just focusing on the bottom line.
Pro Tip: Identify which tactics worked best on your highest revenue deals to build a strategy that is effective for enterprise-level and high-value clients.
Internal feedback offers a qualitative look at your team’s performance. Collecting feedback from your sales team gives you direct insight into ways you can improve your sales process for future interactions.
Encouraging open communication between sales and presales creates a more collaborative work environment, allowing you to highlight ways to refine how team members interact with each other and boost overall sales performance. By working together, these two teams can create a more cohesive overall approach to sales and discover new opportunities for improvement.
Pro Tip: Use sales feedback to inform employee reviews for a more individualized approach to boosting sales performance.
Demoing products is an essential part of the sales process, which makes demo — and proof-of-concept (POC) — related KPIs a clear indicator of team and individual performance. By comparing the number of demos performed and the results of those demos, sales managers can determine which representatives are producing both the volume and quality expected.
Pro Tip: Keep in mind that not all demos end in qualified leads. Demo automation can help separate out unqualified prospects, increasing the value and accuracy of this sales metric for your team’s performance.