What should be on your Sales KPI Dashboard: KPIs for Sales Managers
Data reporting is essential for sales managers to monitor performance. Nevertheless, lots of time can be lost wading through metrics that don’t matter. The idea behind a Sales KPI Dashboard is to define the most important sales metrics and gather them all in one place. KPI Dashboards, as a reporting tool make important metrics readily accessible, and can help improve data transparency, team accountability, and overall data quality
What are KPIs?
Think of sales metrics generally as a rectangle and key performance indicators, or KPIs, as a square. KPIs are simply sales metrics that have been identified as important for measuring sales performance. They are valuable to sales managers to help identify both weaknesses and strengths in the sales process.
What to watch on your Sales KPI Dashboard
With so many aspects of the sales process to track and measure, it can be daunting to narrow it down to what’s essential. The best Sales KPI Dashboard includes metrics focused on diverse aspects of the sales process that together create a clear picture of sale team performance. Specific metrics will always vary depending on your team, your business, and your sales process. In this article we’ll walk you through the kinds of KPIs you’ll want to include in your sales dashboard and a few examples of each.
Results KPIs
These are the most straight forward dashboard metrics. They provide gross numbers over a given time frame, and while they are limited in their ability to give a complete picture od sales performance, they are always important to have at the ready. These include:
- $ sales revenue generated YTD
- # of new sales won this quarter
- # of leads generated this month
- % existing accounts renewed/returning customers YTD
Goal-oriented KPIs
Whether they are monthly, quarterly or yearly, every sales team has objectives to meet. These goals often drive team efforts over the short term. It is essential to keep a close eye on your planned goals, whether the team is on its way to achieving them, or if there is room for improvement. When it comes to selecting goal-oriented metrics for your Sales KPI Dashboard, these are a few we recommend:
- % goal complete: sales revenue generated by team this quarter
- # sales left to close to reach goal by team this month
- $ of average sale value above or below goal
Growth-oriented KPIs
Growth-oriented goal metrics are great because they track progress based on desired improvement. Comparing performance with previous intervals is an effective way to motivate sales teams and show tangible growth. Given that in any given year sales tend to ebb and flow depending on the season, it’s best to use longer intervals for comparison. Here are a few examples:
- % growth in sales revenue based on previous year
- % increase in outbound sales calls made by team or individual compared to previous quarter
- sale win rate by team vs. previous year.
Productivity KPIs
Productivity metrics are especially useful for monitoring activities at an employee level. They are a good short-term performance indicator and can help you establish a baseline for daily activities. You can also use them to set specific goals and recognize achievements.
- # sales by rep this month
- # Outbound emails sent by rep this week
- % scheduled follow-ups completed by rep this week
Sales Funnel KPIs
Key indicators should not only be used to measure results and deals won, but they can also help you evaluate inefficiencies and the quality of the service provided to the customers throughout the sales process. From this data you can also monitor the quality of prospects being brought in.
Pipeline Value
Two main key indicators when it comes to the sales pipeline are the number of open deals currently in the pipeline and the value of open deals in your pipeline. These together with conversion rate statistics can tell you if the number of open deals and the revenue they represent are enough to meet your targets.
Lead Qualification
The metric known as lead-to-MQL (Marketing Qualified Leads) conversion rate is the percentage of leads that qualify based on your set of criteria from the total amount of leads captured. This rate can reveal if your audience is right for the products or services you offer. If the rate is low, you might need to reevaluate your target buyer personas.
MQL-to-SQL conversion rate
Sales Qualified Leads (SQL) are the ones deemed by the sales team as most likely to become customers. The percentage of MQL, marketing qualified leads, that convert into SQL shows how well the marketing or prospecting process is synched with your sales process.
Results-oriented Conversion KPIs
Results-based conversion metrics are key for overall monitoring effectiveness in the sales process. They focus on the result in relation to the number of opportunities presented. Here are a few examples.
- Sales win rate from all leads generated by team this month
- Sales win rate from qualified leads by individual this quarter
- Customer upselling rate by industry
Efficiency KPIs
Lead Response Time
Once a lead enters your sales funnel, how long does it take the sales team to initiate first contact? The longer this time is, often the harder it will become to close the deal. This is also a great opportunity to test your technology, making sure it makes the process even more seamless, not the other way around.
Sales time vs Overhead Time
How much of your sales reps’ time is it actually spent on selling? While this can be hard to measure, even an estimate is useful since superfluous administrative tasks take time and can affect your team’s ability to close deals.
Compare productivity metrics like outbound calls made and other selling activities with how much time your team estimates they spend on things like organizing CRM data or responding to internal emails.
Customer lifetime value (CLV)
CLV, is a projection of the revenue your company will earn from one client during your entire relationship. Retention is always key for a business, given that keeping a client over time is much cheaper than getting a new one. The longer the CLV is, the more revenue your company will make in the long run.
Implementing a solid Sales KPI Dashboard where you can track important metrics and also keep your team informed is crucial to ensuring better results as well as higher levels of engagement. Once you’ve selected the KPIs you think are best for your team or company, make sure you have the right technology to monitor the results, review your performance levels, and adjust to improve.