Sales Growth metrics & KPIs help you monitor your sales team performance, and drive revenues. You can measure these B2B Sales KPIs against their sales KPI targets and determine if your strategy is working. Here are the top sales growth KPIs you must track regularly.
Top Sales Growth KPIs You Must Monitor Regularly
Here are the top sales growth KPIs you must track regularly for your business, and can use as reference when you build metrics for business dashboard reporting.
1. Monthly Sales Growth
Monthly Sales Growth is on of the most important Sales Growth KPIs. It tells you much sales you have grown every month. It’s formula is
Monthly Sales Growth($) = Current Month Sales – Previous Month Sales
The above sales growth metric is measured in absolute dollars. If you want to measure percent sales growth, here’s the formula
Monthly Sales Growth(%) = (Current Month Sales – Previous Month Sales) x 100 /Previous Month Sales
It is advisable to measure monthly sales growth in absolute dollars since percentage calculation can show unnecessarily large numbers, if your previous month sales is a small number.
You can plot monthly sales growth on a line/column chart with the help of a BI Reporting Software and track it every month.
As you start gathering data, you can also break down monthly sales numbers for each channel, or even each rep and track them over time.
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2. Lead Conversion Ratio
Lead Conversion Ratio is also one of the critical sales growth KPIs that allows you to measure what percent of your initial leads have you finally converted into paying customers. 33% of sales reps prioritize leads based on data analysis, than using intuition.
There is no point of attracting many leads if you are not able to convert them. Lead conversion rate differs from industry, it is 1% for some, and even 10% for some others.
Find out the conversion rate of your industry as well as your competitors to have a good benchmark. If your lead conversion ratio is too low then you need to measure the conversion rate at every stage of your sales pipeline and identify where to plug the leak.
Like the monthly sales growth, you can track overall lead conversion ratio every month, using a reporting tool
, as well as break it down for each channel and rep.
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3. Opportunity to Close Ratio
Opportunity to Close Ratio is the percent of qualified leads that you are able to convert into paying customers.
The higher this number, the better your team is at closing deals.
If it is less than 10% then you need to really examine your lead qualification process, as you might not be targeting the right prospects.
4. Profit Per Sales Rep
Running a Sales team is a costly process. So it is essential to measure the amount of profit earned by each sales rep, on an average. The higher your profit per sales rep, the better it is. This will help you understand if your reps are earning worth their salaries.
If your average profit per sales rep is low or negative, it means the average revenue per sales rep is not enough to justify the amount spent on each rep. In such cases, you need to increase the price of your product/service or reduce the costs incurred due to sales reps.
In addition to monitoring the overall profit per sales rep, you can also monitor it specifically for each rep, to identify which reps’ profits need to be improved.
5. Top Performing Sales Reps
This is one of the essential sales growth KPIs to be measured. It is important to identify the top performing sales reps in every business and reward them so that they are motivated.
Once you have identified your top performing sales reps, you should encourage them to share their best practices with other reps so that even they improve.
There are plenty of sales growth KPIs you can measure but the above-mentioned are important, easy to track and effective. Plot them on a business dashboard using a dashboard software like Ubiq as shown below and share them with your team.
If you want to create business dashboards, reports & charts, you can try Ubiq. We offer a 14-day free trial!