10 Sales Metrics and KPIs

“What gets measured gets managed.”

Thanks to these famous words from management consultant and OKRs muse Peter Drucker, businesses have been using data to lead process management for decades — and within an organisation, few depend on data more than sales teams.

Data drives business growth by providing insights and guiding strategy. Sales leaders rely on metrics to help them meet revenue targets. This article will share 10 useful sales metrics to help you write effective OKRs.

Top 10 Sales Metrics and KPIs

#1 Revenue Growth Rate

Revenue Growth Rate measures the percentage increase in sales revenue over a specific period. It indicates the overall growth of sales and the effectiveness of sales strategies.

How to get this KPI:

• Salesforce
• HubSpot
• Zoho CRM

#2 Customer Acquisition Cost (CAC)

Customer Acquisition Cost calculates the average cost incurred to acquire a new customer. It helps evaluate the efficiency of sales and marketing efforts, enabling businesses to optimize their customer acquisition strategies.

How to get this KPI:

• Pipedrive
• Insightly
• Freshsales

#3 Sales Conversion Rate

Sales Conversion Rate measures the percentage of leads or prospects that convert into paying customers. It helps assess the effectiveness of the sales process and identify areas for improvement.

How to get this KPI:

• Close CRM
• Copper
• Salesflare

#4 Average Deal Size

Average Deal Size calculates the average value of each sales deal or transaction. It provides insights into the value of individual sales and helps monitor sales performance and revenue potential.

How to get this KPI:

• Pipedrive
• Zoho CRM
• Insightly

#5 Sales Win Rate

Sales Win Rate measures the percentage of won opportunities or deals in relation to the total number of opportunities. It helps evaluate the effectiveness of the sales team in closing deals and winning customers.

How to get this KPI:

• Close CRM
• Copper
• HubSpot Sales Hub

#6 Sales Velocity

Sales Velocity measures the speed at which deals move through the sales pipeline and convert into closed-won opportunities. It helps assess the efficiency of the sales process and predict future revenue.

How to get this KPI:

• Salesforce
• Pipedrive
• Zoho CRM

#7 Customer Lifetime Value (CLTV)

Customer Lifetime Value predicts the net revenue a business can expect from a customer over the entire relationship. It helps evaluate the long-term value of customers and guide sales and marketing strategies.

How to get this KPI:

• HubSpot CRM
• Zoho CRM
• Salesforce

#8 Sales Target Achievement

Sales Target Achievement measures the percentage of sales targets or quotas met within a specific period. It helps assess the performance of the sales team and track progress towards sales goals.

How to get this KPI:

• Salesforce
• Pipedrive
• Zoho CRM

#9 Sales Pipeline Coverage Ratio

Sales Pipeline Coverage Ratio measures the ratio of potential deals in the sales pipeline to the revenue target. It helps evaluate the health of the sales pipeline and forecast the likelihood of achieving sales targets.

How to get this KPI:

• HubSpot Sales Hub
• Zoho CRM
• Salesforce

#10 Sales Activity Metrics

Sales Activity Metrics include various metrics such as the number of calls made, meetings scheduled, emails sent, or demos conducted by the sales team. They help evaluate the level of sales activity and productivity.

How to get this KPI:

• Outreach
• SalesLoft
• Yesware

How to use Sales metrics with OKRs

To maximize the impact of Sales initiatives and drive organizational success, it is essential to combine your KPIs with Objectives and Key Results (OKRs). While OKRs provide a framework for setting ambitious goals and outlining desired outcomes, KPIs offer the necessary metrics to track progress and evaluate performance.

Here's how to effectively integrate Sales KPIs with OKRs:

1. Align KPIs with OKRs: Select measurable KPIs that directly contribute to achieving the desired outcomes outlined in the OKRs.
2. Set ambitious targets: Establish specific and challenging targets for each KPI to drive continuous improvement aligned with OKRs.
3. Monitor and track progress: Regularly monitor and track the performance of KPIs in relation to the corresponding OKRs.
4. Analyze and evaluate results: Analyze the data collected from KPIs to evaluate the effectiveness of initiatives in achieving OKR outcomes.
5. Make data-driven adjustments: Utilize insights from KPIs and OKR progress to optimize strategies, resource allocation, and interventions for better alignment and progress towards organizational goals.

Best tools to track OKRs with KPIs:

• Tability
• Google Sheet