The Sales KPIs They are fundamental for companies to properly manage their results. Want to know which ones are the most important? Here's a description…
The best sales KPIs for businesses
A Sales KPIs, as performance indicator, It allows you to know if you are doing your job correctly. Within this category, there are the lagging KPIs, more global, and the leading KPIs, more specifically.
When a sales strategy is drawn up, or simply a new business plan and digital transformation, It's essential to have benchmarks. And, precisely, KPIs, as indicators, provide the information needed to make decisions. If we want to focus on sales, there are specific metrics, which are these:
1. Sales KPIs: Gross Revenue
The gross income rate It's the most comprehensive indicator available, but it helps determine whether enough is being sold or not. And it helps to... all types of businesses equally, including, of course, tech companies. Ultimately, it's pure, hard data on how much you're billing.
2. Conversion rate
The Conversion rate is a KPI that applies in relation to the leads that are generated. This is especially relevant in technology companies or online sales. Why? Because it allows us to address three issues:
- The efficiency of our strategy in it sales funnel. It's worth checking if it's being developed correctly or if there are any technical issues. This is especially important to see if there are any problems with the website or the information system.
- He performance of sales representatives and salespeople. Often, a part of the customer interaction is personal, and that's where you can see the difference. It's important to keep this in mind, as it reveals whether the company's human capital is performing as expected.
- If they The leads generated are of high quality. The strategy within the sales funnel may be correct, but the leads received may not be likely to generate sales.
Therefore, this is a metric that should be carefully monitored and kept in mind. After all, if you're generating a lot of leads but hardly making any sales, something isn't working right.
3. Sales activity
The sales activity It's a metric that can be applied either to the company as a whole or to a salesperson or representative. The concept, in any case, is to measure the number of sales in a a specific time, which could be a week, a month, or a quarter. It's clear to everyone that, with this data,
4. Monthly Recurring Revenue (MRR)
The recurring monthly income This is a particularly interesting metric for tech companies. The reason? In many cases, they offer subscription-based services with fixed monthly revenue. Therefore, the MRR metric will allow you to know what the level of "fixed" income« that you will receive every month. And this, obviously, will help you manage better.
5. Market share
The market share It is another highly interesting indicator, especially because it serves to comparative with our competitors. This is where we're looking for find out what is our position in quantitative terms with respect to a certain market. And, as a general rule, it will be expressed in percentage terms. To get a complete picture, it is helpful to know the market share of the competitors.
6. Average revenue per customer
Calculate how much each customer can contribute is equally important. And this can be done in relation to the life cycle (Customer Lifetime Value) or during a a specific period of time. In any case, it's good to know this in order to direct acquisition and retention efforts. Ultimately, this is something that makes a difference and allows us to optimize resources.
7. Customer Acquisition Cost (CAC)
He customer acquisition cost (CAC) It's an indirect sales metric, but one that should also be taken into account. It tells us what the monetary cost direct that involves the customer acquisition, And this can be measured in time or money, which are tangible variables. Generally, retention is much more cost-effective than [further action/efficiency]. catchment, But this needs to be verified.
8. Up-selling and cross-selling
The up-sell and cross-sell sales These are other interesting elements to consider when managing your sales policy. In this case, the focus is on the products or items that have been sold to your customers through upgraded ranges or cross-selling. And this is important, given that some technology companies have various ranges of services or even services that are complementary. If the goal is to increase the average customer ticket, knowing this ratio is essential.
In summary…
The Sales KPIs They are an ally for making decisions, implementing strategic changes, or validating that everything is working correctly. Do you need to take a new approach or redefine your business strategy? In Kawaru Consulting We'll help you with that.Contact us And we'll talk!
