5 KPI Metrics For Sales Teams

If you want to make sure you sell as much as possible and meet (or even exceed) that quota by the end of the year, you’re going to need a tool or two.

And the most important tools in every sales manager’s toolbox are certainly Key Performance Indicators (KPIs).

In this article, we’re going to show you top 5 KPIs for assessing your team’s performance.

Let’s take a look!

Why You Need KPIs for Your Sales Teams

 

Every sales team has target KPIs for actual sales. 

However, these KPIs won’t help you understand your team’s performance. They don’t provide enough context.

20 sales in a month means very little if you don’t know which behaviors contributed to that success. But if you can cross-reference that KPI with KPIs such as: number of follow-ups, or specific actions that your sales reps took, you’ll know a lot more.

Understanding how to replicate and improve your team’s performance is the key to using sales team KPIs. 

Top 5 Metrics for Sales Teams

The following metrics will help you:

  • Understand your sales team’s performance
  • Understand the efficiency of your sales process
  • Optimize

Truth be told, you need to continuously optimize your process and your practices. And with metrics for sales teams, you’ll know exactly what you have to do to sell even more.

  1. Time Spent Selling

Time spent selling is an excellent productivity metric!

It shows how much time your reps actually spend selling. As we all know, reps spend time on data entry, researching prospects, creating materials, and many other tasks. This can lead to their actual sales productive time being down to less than a few hours every day.

Again, it’s normal for reps to spend some time on activities other than communicating with prospects.

However, if your reps don’t spend a lot of time selling, you might need to:

If you use Spinify, a gamified sales dashboard, you can easily set the Time Spent Selling KPI up by giving points for certain tasks. 

For example, your reps could get 3 points for performing tasks unrelated to sales, and 5 for performing tasks directly related to sales.

2.   Lead and Customer Response Rates

 Lead and Customer Response Rates will show you how often your reps respond to leads and customers. 

This KPI can help you understand productivity and workload.

For example, reps with low response rates might be taking on more than they can handle.

In that case, you can delegate some of their work to other reps, or automate certain processes. 

Your problem might also be job disengagement. In that case, consider using Spinify, a gamified sales dashboard.

3.   Research to Outreach Ratio

Research to Outreach Ratio is a perfect metric for establishing if your sales reps are performing enough lead qualification activities.

Simply ask your reps to log time spent researching prospects (especially important if they’re working with key account leads with high LTV), and time spent reaching out to and communicating with them.

If your reps spend more time researching their prospects than reaching out, then…

  • They aren’t focusing on the right aspect
  • Their leads may not be interested enough, signifying that their research methods aren’t accurate

If your reps spend more time reaching out to prospects than researching them, then…

  • Pay attention to the lead response ratio. How many leads respond to their queries?
  • If leads are not responding, it’s necessary to optimize lead qualification activities.

Again, this is something you can easily track with Spinify. You can even establish baselines for each rep to help them improve their ratio.  

4.   Follow-Up Rate

On average, it takes at least 5 follow-ups before you can close a sale. 

This sales metric will help you understand if your reps give up too easily. They could be giving up after the second follow-up doesn’t result in a sale, or they might be focusing on lead generation. 

Whichever the case, the follow-up rate will tell you everything you need to know.

5.   Average Customer Value

Finally, it’s important to understand if your sales reps are actively increasing the value of customers. 

This can alert you to important behaviors such as:

  • Cross-selling
  • Up-selling
  • Retention

Average customer value can also show you how well each rep understands the prospect

If a rep has conducted enough research, they’ll know how to tailor the offer to each prospect.

How Spinify Helps You Track Important Sales Team KPIs

As a gamified sales dashboard, Spinify makes it fun for sales reps to win new customers.

Our tool gives you everything you need to:

  • Understand and improve your performance
  • Motivate your reps 
  • Increase your sales

Start your free trial today!

By |2020-03-25T16:20:02+00:00February 19th, 2020|Boosting Sales, Engagement, Gamification, Sales Performance|Comments Off on 5 KPI Metrics For Sales Teams

About the Author:

Matt Bullock
Serial entrepreneur who loves a deep dive into technology and applying it to solve business problems. Matt recognized that gamification of business activity processes would lead to greater staff engagement, increase productivity and motivate the team to do more, so that businesses sell more and grow more.