KPI for sales teams

Underlying framework for managing sales function is the SALES FUNNEL. Each stage of the sales funnel can be measured and analyzed by volume (leads) and efficiency metrics (conversion rates, velocity).

You should also pay attention to sales velocity – the total time it takes for an opportunity pass through the sales pipeline. Always aim for short sales cycles (time required from 1st contact to payment) by exploring ways how:

• to reduce friction / improve onboarding
• to increase conversion to paid customer
• to increase retention

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1. CONTACTING

Goal: generate sales leads

Activity: unique opportunity sessions (emailing, cold calling, unqiue meetings)

Growth metrics: emails, cold calls

Performance metric: opportunity conversion to sales leads

Cost efficiency metric: sales lead acquisition cost

2. QUALIFYING

Goal: generate sales qualified leads (opportunities)

Activity: questioning customers (calls, fill-in forms)

Growth metric: SQL

Performance metrics: MQL, PQL, IQL converion to SQL

Cost efficiency metric: SQL acquisition costs

3. POC (trials, demo)

Goal: engage SQL in your solution

Activity: design and execution of POC

Growth metric: passed POCs

Performance metrics: SQL to accomplished POCs, time in POC stage, goals / events accomplished in POC

Cost efficiency metrics: POC acquisition cost, for customized products you can measure total cost of all executed POCs (time & material) per accomplished POC, time to finish

4. POC EVALUATION
(can be merged with 3.)

Goal: demonstrate successful use case application and problem resolution (with additional features)

Activity: discuss customer experience and eliminate doubts prior commitment

Growth metric: successful POC evaluations (intention to buy within 2 months)

Performance metrics: ratio of sucessful POCs, SQL to successfull POCs, time in stage

Cost efficiency metrics: same as POC with respeect to successful POCs

5. NEGOTIATION & CLOSE

Goal: convert prospect to customer (=paying user)

Activity: negotiate contract

Growth metric: number of initiated negotiations, number of closed deals

Performance metric: win rate, time in stage,

Cost efficiency metrics: contract value CLV, CLV / CAC, ARPU

7. RENEWALS & UPSELLS (CUSTOMER SUCCESS)

Goal: prolong customer’s committment

Activity: invite customer to prolong their committment, initiate negotiation

Growth metrics: expansion revenue (from existing customers)

Performance metrics: renewals success rate, upsell success rate

Cost efficiency metric: net revenue retention