Over the course of my career as a sales contributor, I have been measured time and time again against sales KPI’s. My motivation as a sales rep was by ranking. If I was not part of the 10% ranking, I would re-evaluate my activities. My boss would email the daily ranking to the team. For some reps, it was a great motivator. For others, it was depressing. You always hoped you were never below the 50% mark. I am happy to say, over my sales career, I earned numerous sales excellence awards and appointed mentor to all new hires.
Below is a list of sales KPI’s that all salespeople are ranked on. Inbound and outbound have different sales KPI’s. I have listed each below. Use these to measure your performance. As you evaluate your performance, keep in mind that activity results in hitting your quota. Without activity, you will never fill your pipeline or close any sales. I can guarantee that your sales manager will track your sales activities.
Sales KPI’s for Activities
- Number of calls made
- Number of emails sent
- Number of conversations
- Number of social media interactions
- Number of meetings scheduled
- Number of demos or sales presentations
- Number of referral requests
- Number of proposals sent
What is the importance of measuring activity? If a rep is not performing, management can look at the sales activity in the CRM by category, review the analytics, and determine where they are falling short. For example, an underperforming rep’s activity show’s a lack of outbound calls but all other activities are within the normal range. The most logical discussion is to have the rep increase their outbound call volume.
Sales KPI’s for Lead Generation for Inbound Reps
Some people would argue that lead generation is marketings responsibility. I disagree. Its the sales persons responsibility to generate their own leads. It’s marketings role to supplement demand and lead generation.
- Frequency of new opportunities added to pipeline
- Average lead response time
- Percentage of leads followed up with
- Percentage of leads followed up with in target time range (for example, 8 hours)
- Percentage of leads dropped
- Percentage of qualified leads
- Customer acquisition cost (CAC)
Sales KPI’s for Outbound Reps
- Meetings – Face to Face or Zoom meetings
- Number of deals closed
- Sales Funnel – what is in the pipeline?
- Opportunities by stage – 5%, 50%, or 95%
- Social Selling interactions
Sales KPI’s for Pipeline Management
Your pipeline is the most monitored activity of your sales career. Most sales managers want to see 3X your quota in your pipeline. That right. If your quota is $1M, you should have $3M in your pipeline. Management uses your pipeline in various ways. For example, let’s say you sell application development services. Your opportunity in CRM is at 95%. The application services manager will use this data to schedule an agile team to your project. Many times, development teams don’t have the resources sitting idle waiting for work. They will contact a recruiter to hire the additional talent.
Here is a list of KPI’s your sales manager will use to measure your pipeline
- Average length of sales cycle
- Total open opportunities by month
- Total closed opportunities by month
- Weighted value of pipeline by month
- Total value of sales by month
- Average contract value (ACV)
- Win rate
- Conversion rate by sales funnel stage
- Percentage opportunities closed/won
- Percentage opportunities lost (no decision)
- Percentage opportunities lost to competitor
- Percentage opportunities won by lead source
- Average number of conversations for won opportunities
- Average number of conversations for lost opportunities
All of these KPI’s are monitored on monthly, quarterly, and semi-annual. All opportunities are ranked in a percentage format – from 5% to 100%. 5% could signify there is a slight interest to 100% meaning you won the opportunity. Each company has their own percentage ranking. I have seen companies use 5% increments by following a predefined sales methodology while other companies use 10% or 20%.
Keep in mind, if your sales manager does not see your opportunities moving along the sales cycles, they will question the validity.
Sales KPI’s for Social Selling
Sales managers are always looking to add data to measure the performance of an inbound or outbound sales reps. For outbound reps, Social selling is the new norm for customer engagement. Why not measure social interaction?
KPI’s to measure your social interaction.
- Percentage of LinkedIn connection requests “accepted”
- InMail response rate – How many prospects responded to your InMail
- Percentage of prospects engaged on social media – For example: Requested a meeting at a conference, demo, phone call, or meet for coffee? Prospects who have moved through the sale cycle
- Number of meetings set
- Number of qualified opportunities generated
- Liked articles
- Share articles
- Follow engagement
There are numerous way to measure the performance of a sales rep. These lists are not exhaustive but merely a starting point to measure KPI performance. By managing your time wisely, keeping your activity level high, utilizing your social network, and building your pipeline, your opportunities will fall into your sales funnel and the results will show.
As my boss used to say to me, if we can’t measure your activity, it’s not a KPI. So don’t waste your time being underproductive where you can be productive, successful, and earn the rewards of outstanding salesmanship — big commission checks.