17 Top KPIs You Should Measure in 2021
June 15, 2021 Comment off
If you want to gain visibility into your team’s performance, measuring Key Performance Indicators (KPIs) are the best way to work out what is working and where you are against your objectives. The key is in choosing the right KPIs to measure, so they are relevant to your goals and your business, and so you can get a good overview of the performance of the business.
Here are 17 top KPIs you should start measuring, if you aren’t already, in 2021.
3 Sales Manager KPIs
- Upsell and cross-sell rates: Your customers are the most qualified leads you have. You want to be able to track your upsell and cross-sell rates so you can see where the low hanging fruits are. Find out what opportunities there are to add revenue to your existing customer accounts and use the data accordingly.
- Average sales cycle length: It’s important to know what the average length of the sales cycle is so you can more accurately forecast when deals could close and where in the cycle deals are dropping off. If it’s too long, work with the team to reduce the sales cycle length. And compare the difference between your top performers (those who close more deals, faster), and the bottom performers.
- Closed won conversion rates: Your closed won conversion rates indicate the effectiveness of your sales team at closing the deals they are working on. Closed rates can be calculated by dividing the number of closed won deals by the number of total deals created during a particular time period.
3 Business Development KPIs
- Number of activities: The total number of sales activities the BDs carry out per month shows you the overall and individual productivity levels. Activities to measure could be total calls, prospect emails sent, meetings booked, and companies contacted.
- Total opportunities created: Additional to activities, you want to measure the number of opportunities actually created – those that make it onto the pipeline. Then you can see which BDs are generating the most opportunities for the business, and in which geography/industry.
- Overall deals won: Measure the deals won by BD, so you know which BD has had the most impact on growth in the team.
4 Senior Sales KPIs
- Average response time: How long does it take for the salesperson to respond to a lead or an opportunity? With this information, you can ensure that there is no lead wasted and prospects are followed up on fast. It’ll also tell you who the slack salespeople are.
- Leads with no sales activity: Additionally, you want to know if there are any leads that have no sales activity against them. That way you can assign someone to re-target them, and find out why the lead hasn’t been contacted in the first place.
- Sales qualified to conversion rate: If you have a definition of what sales qualified is, then you want to be able to see how many of your sales qualified leads go on to become closed won. Low conversion rates would indicate either poor lead quality, in which case you might want to revisit your definition of what a sales qualified lead is, or poor follow up.
- Deal win/loss ratio: Working out the overall win/loss ratio tells you the average amount of deals it takes on the pipeline to close one. You can use this to forecast results better.
7 Sales and Marketing KPIs
- Number of leads in the funnel: Measuring the volume of leads at each stage of the funnel provides insight on where the bottlenecks are, the potential volume of leads becoming sales qualified, and where improvements can be made.
- Marketing qualified lead to customer conversion rate: From a marketing perspective, you want to know how many marketing qualified leads go on to become actual customers so you can work out the ROI of marketing efforts. Raising the number of marketing qualified leads is traditionally seen as a marketing activity but should be a shared effort with sales.
- Number of new opportunities: Measuring the volume of new opportunities provides you with a base number to improve. Once you know how many opportunities get generated each month, marketing and sales can begin to improve that number.
- Average cost per lead: Measuring the cost per lead is another indication of marketing activity success. The lower the cost, the more effective the marketing campaign. Work out the cost per lead by adding together the budget for the marketing campaign and dividing it by the amount of leads it generated.
- Average cost per acquired customer: Equally, working out the average cost to acquire a customer is just as important. Compare the cost per lead to the cost per acquired customer to generate insights – how much does it take for the business to get a customer on board? Is it profitable? Is it too much?
- Customer retention rate: Keeping track of customer retention tells you how well the business is running, because keeping customers is just as vital as getting new ones.
- Average order value: If you don’t measure average order value, you don’t know how much a customer typically spends with your business. Understanding the average order value for certain demographics and target audiences tells you where you should be putting your efforts.
Track the things that matter
Tracking all this information means you’ll have the data you need to make more informed sales decisions. You’ll know where the areas of performance need to happen, the areas of weakness, the bottlenecks, the best performing team members, the slackers, and more.