October 3, 2017

Guest Post by John Sturrock

KPIs Keep Tabs of The Performance Of Your Sales Team

The importance of an efficient sales team should be evident whether the company deals in distribution or wholesale. This is because the sales team is what links the products to the customers.

The clients could be separate individuals or whole other companies. Whatever the case, their purchases are directly related to the sales team performance.

Hence, any company worthy of flourishing should carefully measure their sales team’s performance using KPIs and metrics.

The following are some useful key sales metrics one could use to gauge where their sales team needs improvement. This could help a business expand better and smoothen out the wrinkles in their sales department.


7 Key Performance Indicators for Sales Teams


1. The Opportunity-Win Rate

Opportunity Win Rate For Sales Performance

The opportunity-win rate is a key sales metric that measures the opportunities for sale. It then identifies how many of these opportunities actually become sales.

A sales team usually has several leads on their potential clients. If they do not let these opportunities go to waste, it means they are performing well.

Hence, it is important for a company to look at the chances taken and the chances missed by a sales team. This keeps them on their toes and ensures that potential sales aren’t slipping away.


2. The Volume of Sales by Product Line

This particular sales metric focuses on the different kinds of products a company has. Almost every company has separate lines for their product range.

For example, a company may deal in hair care products. This means they would have to look at the sales team’s performance in the shampoo line, the hair spray line, etc.

Another example could be a company who only provides shampoo. However, they could divide up their measurement by looking at the volume of sales in different areas.

With this metric, the company tracks these different lines and sees how the sales are going. The information thus collected is a valuable asset for the product development and research team, as well as a measure of sales performance.


3. The Percentage of Sales Team Members Achieving Goals

Percentage of Sales Team Members Achieving Goals

This key sales metric is a bit on the higher level. It requires looking at the sales team as a whole, and also the individual members within it.

There are always certain members of a sales team who achieve their sales quota, maybe even more. Then there are other members who struggle in doing so. A company can use this information to its advantage.

One does this by looking at the percentage of a sales team that does manage to achieve their goals. After this calculation, it becomes easier to pinpoint the areas that are lacking something.

The company could then focus on what they need to do in order to bring this percentage up. This could be working on the motivation of a certain employee, or increasing the marketing budget.

Finally, this sales metric also helps a company realize how realistic their sales quotas are. If the sales team is performing poorly, it is not always the fault of the individuals. The quota itself may be too large to handle.


4. The Length of the Sales Cycle

The amount and volume of sales aren’t the only metrics one should use to measure their sales performance. The time span it takes for an opportunity to become a sale is also of great importance.

Obviously, the shorter a sales cycle is, the better it is for any company. A sales team should hence have as short a sales cycle time as possible. If it is too long, it can be costing the company quite a bundle.

This metric hence directly measures the efficiency of a sales team as well as the quality of their sales leads. When it comes to the individual sales representatives, a company should look at who is the quickest in closing deals.

The average length of the sales cycle is also an important sales metric related to this one. This average should, as a rule, be as steady as possible. Sudden plunges or peaks are worthy of investigation.


5. Deal Size Per Salesperson

Deal Size Per Salesperson

The deal size per salesperson, especially the average, is a very useful key sales metric. One can use this to track the individual performance of the sales team members.

If one wants, they can take this metric to a higher level. The revenue goals and lead quality evaluation would also signal the performance of a company through this metric.

Lastly, a company could also see whether they’re targeting the correct consumer base or not. If the deal size per salesperson is consistently too small, there might be some basic mistake. Rectifying this could create a significant improvement.


6. The Quote-to-Close Ratio

The quote-to-close ratio involves a comparison between the quotes sent out and the deals that are closed. This is in relation to the numbers of quotes and closed deals involved.

What this ratio does is accurately indicate whether one is targeting the correct market or not. Many times, a company may make the expensive mistake of targeting the wrong customers.

When one can pinpoint just which sector of the market to target, their sales revenue can go way up. For example, a company marketing large trampolines to adults rather than kids can sell a great deal more than before.

Additionally, when this ratio is used to measure each member of a sales team, it can reveal several valuable factors. These include the individual’s performance, efficiency within the closing process and many other aspects of the sales team.


7. Performance of Products

Apart from the sales in different product lines, product performance is also a good key sales metric. This helps to track which are the best-selling products. This makes the sales and marketing decisions much easier.

When making use of this metric, it is best if a company accounts for the activities of different departments. The sales could be directly affected by the marketing team efforts or seasonal activities.



While these general metrics are invaluable for use in any industry, there are also exceptions to these measures. The results from these metrics would depend on how many deals a company is closing within a month or a year.

These metrics should all be tracked for several months, and then used to reach a conclusion about sales team performance. This makes it easier to make decisions about automating processes or making other changes.


Author Bio

John Sturrock is an Online Marketer, Writer and Blogger. In addition, he is also a longtime corporate employee who is also skilled at online dissertation help. He has a passion for digital marketing.