Best Sales Manager KPIs To Track in 2024

One of the most valuable tools a sales team has available is data, analytics, and insights. As a sales manager, your job is always to keep this data at the top of your mind so you can make effective changes to campaigns and the sales cycle. With these insights, you’ll be able to point out top performers, find new opportunities, and capitalize on your team’s unique strengths. 

It can be easy for sales managers to get lost in the key sales metrics and data they have readily available. However, if you’re spending countless hours tracking your sales team’s every move or revising your sales strategies, you might never see the results you want to see.

That’s where sales KPIs for sales managers come in.

Sales KPIs provide insight into your sales team’s success and customer satisfaction. It’s a tool that helps you discover new growth opportunities, improve your customer retention rate, and strategically upgrade your sales strategy based on data-backed findings.

We’ve narrowed it down to a list of 16 sales KPIs for sales teams that you can use monthly, quarterly, or annually.

Let’s take a closer look at what sales KPIs are, the benefits, and the top sales manager KPIs to help you get started.

What are KPIs?

KPI stands for key performance indicators. These sales analytics can help you collect and analyze your team’s sales data. Incorporating both leading and lagging indicators in evaluating KPIs provides a comprehensive view of organizational progress.

This approach facilitates the monitoring of immediate performance signals and long-term impacts on business outcomes. With these KPIs, you can identify challenges, find new opportunities, and keep your team on track to meet their sales goals.

KPIs are sales metrics that simplify the data and analytics process. Your team may track all the data and findings you can find, but if you don’t know how to analyze the numbers, you won’t know what steps to take next.

Understanding the difference between leading and lagging indicators is crucial for effective KPI analysis. Leading indicators predict future performance, while lagging indicators reflect past outcomes, offering a balanced view of your sales strategies.

To maximize the benefits of KPIs, it’s essential to align them with your strategic objectives. This ensures that every metric you track supports your overarching business goals and helps in achieving them.

Regularly reviewing and adjusting your KPIs can lead to continuous improvement and sustained success. By focusing on the right KPIs, you can drive meaningful change and enhance your sales team’s performance.

Definition and Importance of KPIs

Key Performance Indicators (KPIs) are quantifiable measures used to evaluate the success of an organization, department, or individual in achieving specific goals and objectives. In today’s fast-paced business landscape, KPIs are essential as they provide a clear understanding of performance and progress toward strategic objectives. By tracking key performance indicators, organizations can make data-driven decisions, identify areas for improvement, and optimize their operations to achieve better outcomes.

The importance of KPIs lies in their ability to:

• Provide a clear understanding of performance and progress toward strategic objectives.
• Enable data-driven decision-making.
• Identify areas for improvement and optimize operations.
• Align teams and departments around common goals and objectives.
• Enhance accountability and transparency.

By leveraging key performance indicators, businesses can ensure they are on the right track to achieving their goals and maintaining a competitive edge in the market.

The Benefits of tracking KPIs

Dynamic data

Unlike standard sales metrics stored away in countless excel sheet files, KPIs are dynamic, not static. So you can gain an understanding of your sale’s potential for a given time period and track your team’s progress in real-time.

Easy to understand and actionable

Most KPIs for sales are formulas where you can easily plug in the answers and have your data in seconds. This means your sales team can easily use this data whenever they need it.

Boost your sales growth and maximize your revenue

You’ll see your team’s progress in real-time if you always track the same KPIs. Every month, quarter, and year will provide insight into your sales growth and revenue growth. You’ll know where your team’s strengths and weaknesses are and what you need to do to increase your customer lifetime value, predict sales trends and grow your sales pipeline.

Improve the sales process

It doesn’t matter if you’ve been in business for one year or ten years: There is always room for improvement. With sales KPIs, you can easily track the efficiency of the sales processes and find new opportunities to improve the sales cycle. When your team sees the data in real time during sales meetings, they’ll be motivated to reach their goals.

Set goals and create a plan

Each sales KPI you decide to focus on will provide invaluable insight into the sales process. With this insight, you can set goals for each sales rep and create a plan that helps everyone succeed.

It’s important to note that there are sales KPIs for almost everything. Not every KPI on this list is going to help you see results. Before you decide to use all 16 of these sales KPIs, you’ll want to consider the industry you’re in, what you sell, and you’re overall goals.

Types of KPIs

KPIs can be categorized into different types based on their purpose, scope, and focus. Understanding these categories helps organizations tailor their performance measurement to specific needs and objectives. Some common types of KPIs include:

• Strategic KPIs: These KPIs are aligned with the organization’s overall strategy and goals. They measure the organization’s progress toward its long-term objectives.
• Operational KPIs: These KPIs focus on the day-to-day operations of the organization. They measure the efficiency and effectiveness of processes, systems, and teams.
• Functional KPIs: These KPIs are specific to a particular department or function within the organization. They measure the performance of that department or function in achieving its goals and objectives.

Strategic KPIs: Guiding the Organization’s Direction

Strategic KPIs are essential for setting the overall direction and goals for an organization. They align with the company’s long-term objectives and provide a roadmap for achieving them. For instance, a strategic KPI for a sales organization could be to “Increase revenue by 20% within the next 12 months.” These KPIs ensure that the organization remains focused on its strategic goals, driving growth and success.

Operational KPIs: Enhancing Processes and Systems

Operational KPIs focus on the day-to-day processes and systems that support the organization’s strategic goals. They measure the efficiency and effectiveness of operations, ensuring that the company’s activities align with its objectives. An example of an operational KPI might be to “Reduce sales cycle time by 30% within the next 6 months.” By optimizing operations, businesses can enhance productivity and achieve their strategic objectives more efficiently.

Functional KPIs: Measuring Departmental Performance

Functional KPIs are specific to individual departments or functions within an organization. They assess the performance of these areas in contributing to the organization’s overall success. For example, a functional KPI for the sales team could be to “Increase the number of qualified leads by 25% within the next quarter.” By focusing on these KPIs, organizations can ensure that all departments work towards common goals, fostering collaboration and improving overall performance.

The Top 16 sales KPIs for your sales team

Customer Acquisition Cost (CAC)

CAC = Total customer acquisition cost / # of new customers

CAC calculates how much it costs your company to acquire a new customer. This cost will vary and depend on your unique business model. It factors in all of the costs associated with acquisition, including sales expenses, marketing, salaries, and overhead costs.

According to a study by Invesp, 44% of companies rate customer acquisition as their most important goal in their sales and marketing efforts. While customer acquisition is a must if you want to scale your business, you’ll also want to look for ways to grow your customer’s lifetime value and increase your average purchase revenue per customer. If you can find big or small ways to cut your customer acquisition cost, you can also increase your profitability over time.

Marketing KPIs are essential metrics for evaluating the effectiveness of marketing campaigns. They highlight various metrics, such as website visitors and conversion rates, that provide insights into the performance of marketing initiatives and strategies. Setting specific, measurable goals can enhance your marketing efforts.

You may bring tons of new business to the company, but if they are a low-paying customer and your overhead costs are too high: It’s time to make changes.

Monthly Calls Per Sales Rep

With this sales KPI, you’ll know how viable your team’s sales activities are to your overall success. For some businesses, calls are a big part of the business. Studies suggest the average B2B salesperson makes 35 calls in a day. Some sales reps are even required to make up to 100. However, quantity doesn’t always lead to qualified leads.

Let’s say your top-performing sales rep makes 50 calls a day. However, only 5 of the 50 calls are qualified leads that lead to a demo or a meeting. With this insight, you may decide that phone calls aren’t the best sales activity that your team should be focusing on. You may switch to paid marketing efforts, emails, or other sales growth techniques that will help you see better results than outbound marketing.

As a sales manager, you’ll want to check in on your team’s sales activities regularly to ensure they complete their everyday sales activities and see results from their outbound initiatives. Consider also tracking their emails and other communication efforts to see which provides the highest ROI. You can then use your findings to adjust your sales cycle and improve sales rep productivity.

Product Performance

Sometimes, the problem is your product, not the sales rep. There are several ways to look at product performance. For starters, if you’re a B2C company, you can look at your top-performing products and product sales volume. This will tell you which product is outperforming the others. 

Another way to look at product performance is to look at your retention rate. Every month your churn rates continue to increase, and your monthly recurring revenue declines. You’ll want to take some time to take a step back and look at the bigger picture. Why aren’t your existing customers renewing their subscriptions? Does your product solve a problem? Is it a necessity for their workplace productivity?

One of the best ways to look at product sales performance for a SaaS product or subscription is to send surveys to your existing customers. They will provide feedback on their experience with your product that you can use to make adjustments. If you have a subscription service, you get survey responses that say your pricing is too high or they don’t see the value in renewing. Consider looking for ways to add value to your product by creating new perks, add-ons, and subscriber-only benefits.

Sales Per Rep

Sales per rep = Total sales / # of sales per rep

Your sales per rep KPI will provide insight into who the top performers are and who needs to improve. Sales managers use this sales KPI to gauge their team’s sales performance and who needs more support to reach their goals.

Sales key performance indicators, such as sales per rep, are essential for evaluating the effectiveness of your sales team. With this KPI, you can inspire your team to generate more sales and get them in the competitive spirit. A great way to do this is by gamifying the workplace. You can create a score leaderboard so everyone knows where their other coworkers stand. This way, they’ll be motivated to improve their sales efforts.

Every time your sales reps clock in to start their day, the leaderboard will be top of mind. This will motivate them to make those extra calls, send a few more emails, or drop by a client’s office.

Average New Deal Size

This sales KPI aims to determine how much money is generated by the new deals your sales team brings in. A member of your sales team may be bringing in 20 new deals a week, but if they are only a fraction of the revenue of your biggest clients, they may not be as worthwhile as you think.

Maybe, you offer several SaaS services and notice that customers purchase higher-ticket items. There may be a decrease in new deals, but an increase in deal size can positively impact your bottom line. This sales management KPI will provide you with predicted sales trends and help you understand how profitable your customers are.

Lead-to-Sale Percentage

Lead to sale percentage = (Total # of sales / total # of leads) x 100

This is also commonly referred to as the lead conversion rate. This KPI for sales tells you what percentage of leads convert to actual sales. This helps you understand how efficient your sales team is at closing deals and turning prospects into paying customers who keep returning for more.

Leading indicators provide predictive insights into future performance, allowing businesses to gauge their progress towards achieving goals. This contrasts with lagging indicators, which reflect past outcomes, underlining the importance of focusing on leading indicators for proactive business strategies.

Lead to sales percentage is also a great tool to help you marry your sales and marketing teams. You can use this percentage to understand which digital marketing channels you should leverage for lead generation and which ones you shouldn’t spend too much of your budget on. You’ll have a general understanding of the strength of your sales pipeline and will know if you need to revise your current strategies.

Average Conversion Time

Average conversion time = Total length of time to convert the lead to sale/total # of new sales.

This KPI tracks how quickly your sales team can convert a lead into a sale. Sales managers typically use this metric to measure the efficiency of their sales reps and look for new opportunities to improve the sales cycle. This metric can provide meaningful insight into the effectiveness of your sales funnel and give you the data you need to tackle challenges your sales team may be hit with during the sales process.

Number of Monthly Demo Calls

For many businesses, demo calls are an integral part of the sales cycle. Your conversion rates will increase if your sales reps can get more prospects into the demo call phase. This sales KPI will help you find the sales leaders and top performers while also helping you gauge the effectiveness of your sales funnel. 

Sales Target Attainment

Sales target attainment = (Sales for the month/sales target) x 100

Is your team meeting its sales goals every month? Is someone falling behind and not having as much success? This is one of the best sales analytics tools because it provides managers with guidance and holds sales reps accountable for their quotes. Every month, you should establish targets that reflect on the previous period’s success. You may decide that every person has a different goal or give them the same goal across the board: The choice is yours. 

Pro Tip: With the help of sales leaderboards, you can help your team visualize their success and inspire friendly competition in the workplace!

Monthly Recurring Revenue (MRR)

MRR = (Average monthly revenue from total new and expanded accounts / # of accounts) x # of accounts that month

Your monthly recurring revenue MRR is how much predictable revenue you expect your company to bring in monthly. Every month, you can increase your MRR by acquiring new customers and offering upsell or upgrades to your current customers.

MRR is a must-watch KPI for companies that focus on subscriptions, selling SaaS products, and other products that produce recurring revenue. The goal is to continue to increase your customer’s lifetime value and keep as many customers on file.

Pipeline Value

Your pipeline value will give sales managers a general idea of the expected revenue from all the current active sales in the pipeline. Of course, this is a best-case scenario situation. Not every deal in your pipeline will convert.

However, tracking this sales KPI will help you track your sales goal in real-time and see the sales progress for each sales rep.

KPI dashboards are essential tools for visualizing performance metrics and strategic planning. They help both sales teams and executives monitor progress toward revenue targets and facilitate data-driven decision-making.

You’ll want to look at one-time, monthly, and annualized values. With this information, sales managers can go into one-on-one meetings with their sales reps and give them individualized guidance to help them reach their goals.

If there are not a ton of viable leads in the pipeline for the month, you may ask your sales team to put together a sales campaign or look for innovative ways to motivate them to improve their prospecting efforts.

Churn Rate

Churn rate = (# of lost customers ÷ total customers) x 100

Your churn rate is the percentage of customers who fall off the file during a given period of time. If you want to grow your business, you’ll want to try to keep your churn rate as low as possible. This is to ensure you can maintain your growth rate.

The best way to lower your churn rate is to rethink the customer experience. Send out surveys, gather feedback, and study customer behaviour. You can look at customer engagement levels and find new ways to connect with your customers. By turning your product into an everyday necessity and providing top-of-the-line customer service, you can keep your churn rate low and keep your sales team focused on bringing in new business.

Upsell and Cross Sell Rates

Is your sales team actively upselling and cross-selling to customers? If they aren’t, your business could miss out on meaningful opportunities to increase the customer’s lifetime value. Keeping track of these numbers helps you identify new opportunities and find ways to improve your product and service pitches.

To find upsell and cross-sell rates, you’ll want to look at how many upsells your team is getting monthly and how many sales reps are receiving on an individual level. 

With this data, you’ll understand what products customers purchase so you can restructure your sales cycle and make beneficial changes that impact your bottom line.

For example, you notice that individuals with product A commonly pair it with product B. You can add this into the sales process, so your sales team goes to them 3-6 months later with this upsell opportunity.

Cost per lead (CPL)

Cost per lead = marketing campaign budget divided by # of leads acquired.

Cost per lead looks at the success of your marketing and sales campaigns. The lower the cost per lead, the more effective your marketing campaign is. With this metric, you can help your marketing and sales teams work together towards a common goal. They can use this information to find future sales and improve sales performance.

If you aren’t regularly looking at this KPI every month or quarter, you could be throwing money away toward ineffective marketing campaigns. Some of the best ways to lower your cost per lead are by narrowing down your target audience, testing your advertising on different platforms, and looking for new ways to take a more segmented approach.

Profit Margin

Everything your sales team does is to generate more profit. With your profit margin KPI, you can assess your sales team’s performance and see how well your expenses match up with your earnings. If you have a high-profit margin, meaning your company is efficient at keeping costs low.

There are three different types of profit to keep an eye on Gross profit margin, operating profit margin, and net profit margin. Each sales metric provides insight into your financial health and the profitability of your sales team.

Sales volume by location 

Whether you have an eCommerce or a brick-and-mortar business, this sales metric will help you know which locations generate the most revenue. With this KPI, sales managers can decide which geographical area they want to spend most of their resources on. You can customize your sales approach and product offering to drive more sales for your business.

This sales manager KPI will also tell you which locations have the most potential. You can send more sales reps to different regions or target your marketing efforts to that specific location.

Customer Satisfaction KPIs

Customer satisfaction is a critical aspect of any business, and KPIs can help organizations measure and improve customer satisfaction. Some common customer satisfaction KPIs include:

• Customer Satisfaction (CSAT) Score: This KPI measures the overall satisfaction of customers with a product, service, or experience.
• Net Promoter Score (NPS): This KPI measures the likelihood of customers to recommend a product, service, or company to others.
• Customer Retention Rate: This KPI measures the percentage of customers who continue to do business with an organization over a specific period.

By focusing on these customer satisfaction KPIs, businesses can gain valuable insights into their customers’ experiences and identify areas for improvement.

Measuring Customer Satisfaction

Measuring customer satisfaction requires a combination of quantitative and qualitative data. Organizations can use surveys, feedback forms, and social media listening to collect data on customer satisfaction. They can also use metrics such as CSAT, NPS, and customer retention rate to measure customer satisfaction.

For example, a company might use a survey to collect data on customer satisfaction with its product or service. The survey might ask questions such as “How satisfied are you with our product?” or “How likely are you to recommend our product to others?” The company can then use the data from the survey to calculate its CSAT score or NPS.

By tracking customer satisfaction KPIs, organizations can identify areas for improvement and optimize their operations to deliver better customer experiences. This not only helps in retaining existing customers but also in attracting new ones, thereby driving overall business growth.

Why sales managers need to track sales KPIs

Your sales reps want to succeed. They want to close deals, build a successful sales campaign, find new customers, and meet monthly goals. However, without the data and support from their manager, they won’t feel motivated to take on new business and go the extra mile.

Your team needs to feel inspired. With sales KPIs for sales managers, you’ll have an opportunity to promote friendly competition in the workplace and slowly push each individual closer to their overall goals.

While data and sales manager KPIs are invaluable tools that can lead your team toward success, sometimes, it’s not enough. With the help of gamification, you can enhance the workplace environment and create a successful sales culture.

At Spinify, we help teams of every size maintain their competitive edge. Our solution helps gamify the workplace and inspires your sales representatives to outshine their coworkers. With the help of sales data-backed leaderboards, you can build a thriving workplace experience built on the foundation of friendly competition. 

If you’re looking for a fun and innovative way to improve sales processes with sales data metrics and game elements, you’ve come to the right place. Our solution can help sales managers increase workplace productivity, enhance efficiency, and turn the workplace into a fun place to be. today to learn more.