Best Sales Metrics: 20 Game-Changing Indicators for 2024
In a competitive world, understanding the ebb and flow of your sales team isn’t a bonus – it’s a necessity.
Sales metrics highlight growth areas, unveil challenges, and guide strategic decisions. They’re not just statistics; they’re the heartbeat of sales success.
But which metrics deserve your attention?
Dive into this guide to discover the top 20 metrics no business should overlook 👇
Outreach activity metrics
1. Calls made
Definition: The number of sales calls made.
Why track this metric: Monitoring call volume helps assess the sales team’s activity.
How to calculate it: Tally the total number of calls made by SDRs over a given timeframe.
2. Emails sent
Definition: The number of sales emails dispatched.
Why track this metric: Monitoring email volume helps understand the sales team’s reach and persistence.
How to calculate it: Count the number of emails SDRs send during a specific period.
3. Meetings booked
Definition: The total number of sales meetings scheduled.
Why track this metric: It gauges the effectiveness of outreach efforts in securing face-to-face meetings.
How to calculate it: Tally the number of meetings arranged by SDRs within a given timeframe.
4. Follow-ups conducted
Definition: The number of follow-up activities carried out after the initial outreach.
Why track this metric: It helps evaluate whether leads are adequately nurtured.
How to calculate it: Count the follow-up activities SDRs undertake during a set period.
Sales conversion metrics
5. Lead conversion rate
Definition: The percentage of leads that convert into actual sales opportunities.
Why track this metric: It indicates the effectiveness of your lead generation efforts.
How to calculate it: (Number of leads converted to opportunities / total leads) x 100.
6. Opportunity win rate
Definition: The ratio of sales opportunities that convert into actual sales.
Why track this metric: It measures the sales team’s effectiveness at closing deals.
How to calculate it: (Number of won opportunities / total sales opportunities) x 100.
7. Average sales cycle length
Definition: The average time it takes to convert a lead into a customer.
Why track this metric: This helps to optimise the sales process for efficiency.
How to calculate it: Total days of all sales cycles / number of closed deals.
8. Monthly recurring revenue (MRR)
Definition: The predictable revenue that a company can expect to receive every month.
Why track this metric: It’s essential for understanding the health of a company’s revenue stream.
How to calculate it: Sum of all monthly subscription amounts.
9. Customer lifetime value (CLV)
Definition: The predicted revenue from a customer over the entire business relationship.
Why track this metric: It provides insight into your customers’ long-term value.
How to calculate it: Average purchase value x average purchase frequency x average customer lifespan.
10. Average revenue per account (ARPA)
Definition: The average revenue generated from each account in a specific period.
Why track this metric: It helps businesses gauge revenue health across different client segments.
How to calculate it: Total revenue in a time frame / total number of accounts in the same time frame.
Customer health metrics
11. Customer satisfaction score (CSAT)
Definition: A measure of a customer’s satisfaction with a product or service.
Why track this metric: The CSAT reveals how well you’re meeting customer needs. High scores mean you’re on track; low scores suggest room for improvement.
How to calculate it: (Number of satisfied responses / total number of responses) x 100.
12. Net promoter score (NPS)
Definition: A measure of a customer’s willingness to recommend a company’s products or services to others.
Why track this metric: It evaluates overall customer satisfaction and brand loyalty.
How to calculate it: % of promoters (score 9-10) - % of detractors (score 0-6).
13. Customer churn rate
Definition: The percentage of customers who stop doing business with a company over a specified period.
Why track this metric: High churn rates can indicate problems with the product/service or customer service.
How to calculate it: (Number of customers at the beginning of a period - number of customers at the end of the period) / number of customers at the beginning of the period x 100.
Team performance metrics
14. Sales target achievement rate
Definition: The rate at which sales teams meet or exceed their targets.
Why track this metric: It indicates the performance level of the sales team.
How to calculate it: (Actual sales / sales target) x 100.
15. Sales response time
Definition: The average time it takes for a sales representative to respond to a lead.
Why track this metric: Timely responses can significantly increase conversion rates.
How to calculate it: Total response time for all queries / number of queries.
16. Sales productivity
Definition: The revenue a salesperson generates compared to their cost of selling.
Why track this metric: Evaluates the efficiency and effectiveness of sales reps.
How to calculate it: Total revenue generated by a rep / total cost of that rep.
17. Sales forecast accuracy
Definition: How closely the forecasted sales numbers match the actual sales achieved.
Why track this metric: It helps refine forecasting processes and ensure better planning.
How to calculate it: (Actual sales - forecasted sales) / forecasted sales x 100.
18. Quota attainment
Definition: The percentage of sales representatives meeting or exceeding their sales quotas.
Why track this metric: It gives a snapshot of team performance in relation to set goals.
How to calculate it: (Number of reps meeting or exceeding quota / total number of reps) x 100.
19. Pipeline coverage
Definition: The number of opportunities in a pipeline compared to the sales quota.
Why track this metric: It ensures there are enough deals in the pipeline to meet sales goals.
How to calculate it: Total value of opportunities in the pipeline / sales quota.
20. Lead velocity rate (LVR)
Definition: The growth rate of qualified leads from month to month.
Why track this metric: It shows the momentum of a business’s growth and the quality of its lead generation efforts.
How to calculate it: (Number of qualified leads this month - number of qualified leads last month) / number of qualified leads last month x 100.
Sales metrics FAQs
What are sales metrics?
Sales metrics are the vital signs of your business’s health. They provide insight into every stage of the sales journey.
From the first engagement to ongoing customer relationships, sales metrics highlight strengths and areas for improvement.
Why are the definitions of sales metrics essential?
When everyone in the business agrees on the definitions of each metric, it eliminates guesswork.
This clarity ensures that decisions are made with a unified understanding, ensuring smooth strategy rollouts and accurate assessment of results.
What are the most important sales metrics?
While every company might prioritise different metrics based on its specific goals, certain indicators are universally important.
These critical metrics include lead conversion rate, monthly recurring revenue (MRR), churn rate, and customer lifetime value (CLV). They demonstrate the effectiveness of the sales strategy, financial progress, and customer satisfaction.
How are sales productivity metrics different?
Sales productivity metrics specifically focus on the efficiency of the sales process. They track the sales team’s performance from initial outreach to closing deals.
By examining these metrics, businesses can determine how effectively they turn resources into sales.