Keeping track of your sales performance is crucial for reaching your goals and crushing your quotas as a salesperson. But with so many different metrics and key performance indicators (KPIs) out there, it can be tough to know where to start. Don’t fret; we’ve put together a list of the most important sales KPIs that make sense to track as an individual sales rep, plus how to calculate each one.
Why you should track your performance — and how to get started
Chances are, your manager has set sales targets for your team and/or for each individual rep. These goals are helpful to keep you accountable in your role and help your team stay on track, but beyond that, what specific sales performance metrics should you be tracking to help with your own professional development and career growth? By monitoring important metrics and documenting the results you’ve achieved, you’ll have clear proof to present to current or future employers that could eventually lead to a promotion or new opportunity. Here are some simple steps to follow to start tracking your performance more closely:
- Set goals and KPIs: Identify the most important metrics that you need to track and set goals for yourself. Your goals could include targets for your sales conversion rate, average deal size, close rate, lead response time, sales cycle length, win rate, and gross margin, among others.
- Keep a record: Maintain a detailed record of your sales activities and progress towards your goals. This can include a sales journal, spreadsheet or CRM system. Make sure to update this dashboard so you have an accurate and up-to-date picture of your performance.
- Regularly review your performance: Set aside time each week or month to review your performance and compare it to your goals and KPIs. Take note of areas where you’re doing well and areas where you need to improve. Reviewing your progress will also help you identify trends and patterns over time.
- Ask for feedback: Get feedback from your manager or peers regularly. You can set up this regular exchange informally through regular check-ins or formally through performance reviews. Use the feedback to identify areas for improvement and to celebrate your successes.
- Take the wins: Take the time to track and celebrate your successes, no matter how small. This will help you stay motivated and build confidence in your skills.
Go ahead, start tracking — chances are, you’ll be impressed by how much you accomplish. Plus, you’ll be well-prepared to discuss your results with your manager when the time comes. Not sure what metrics to track? We’ve got you covered in the next section.
6 KPIs to keep on your sales dashboard
Depending on your industry, business size and the type of product or service you’re selling, certain KPIs may make more sense to track than others. Whether you’re using a CRM system or other software to track sales, or a simple spreadsheet, here’s a list of six common sales KPIs that will help you keep objective tabs on your sales performance, and document it for your next performance review:
(1) Sales conversion rate
This metric is a pretty universal sales KPI to be tracking. It measures the number of sales you close compared to the number of leads or opportunities you have during a certain period. All you have to do to calculate it is divide the number of sales by the number of leads or opportunities, then multiply by 100 to get a percentage.
Example: If you had 20 sales and 100 leads, your conversion rate would be 20 ÷ 100 x 100 = 20%.
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(2) Average deal size
Every sales rep wants to land the big sale, but how do the deal sizes stack up when you average them all out? This KPI measures the average amount of money you bring in per sale. Calculate it by adding up the total amount of money you generated from sales and divide it by the total number of sales in a given period.
Example: If you had 20 sales for a total of $10,000, your average deal size would be $10,000 ÷ 20 = $500.
(3) Close rate
The rate at which you close opportunities is an important sales KPI. It basically measures the percentage of opportunities that you close. Determine your close rate by dividing the number of sales by the number of opportunities and multiplying by 100 to get a percentage.
Example: If you had 20 sales and 50 opportunities, your close rate would be 20 ÷ 50 x 100 = 40%.
(4) Lead response time
We all know that when it comes to sales, time is money. How long does it take you to respond to a new lead? Calculate this metric by keeping track of the time between when a new lead comes in and when you respond. The quicker, the better. You could even look at the relationship between lead response time and close rate. Is your close rate notably higher for leads that you respond to immediately? This is good data to have to help you refine your sales process.
(5) Sales cycle length
Most businesses want to have an idea of the average amount of time it takes to close a sale from start to finish. But this metric is also useful to you as a sales rep because it can help you gauge your pipeline each month and determine which opportunities or leads are likely to close soon. To calculate it, keep track of the total number of days between when you first make contact with a lead and when you close the sale, then divide that number by the total number of sales you closed.
Example: If you closed 6 sales and it took a total of 210 days to close them all, your sales cycle length would be 35 days.
(6) Win rate
Your win rate is often considered the north star metric for sales, measuring the percentage of deals that you win. To determine your win rate, divide the number of deals you win by the number of deals you bid on and multiply by 100 to get a percentage.
Example: If you bid on 100 deals and won 20 of them, your win rate would be 20 ÷ 100 x 100 = 20%.
Tracking sales performance with CRM
A CRM system can be an incredibly useful tool for helping you track sales KPIs more quickly without much manual data entry. For example, Draw-K offers several out-of-the-box reports to track KPIs like win rate.
Even if you don’t use a CRM platform, tracking your sales KPIs regularly will help you keep a close eye on your sales performance and make adjustments as needed to keep hitting your targets. Happy selling!