7 Necessary Sales Metrics That Every Business Must Chase

Posted by Mihir Shah on March 25th, 2021

B2B Sales Metrics is important to keep the track of what your sales representatives are doing. If you have to monitor your business health, there’s no way other than keeping track of your Sales Metrics. Therefore, it is important not only to understand these Sales Metrics but also to monitor these important sales metrics. This will enable you to make better decisions and make better strategies for the future.

But, before that What is Sales Metrics?

Sales Performance Metrics is the piece of data that represents individuals, team’s or a company’s overall performance. Sales Metrics can be used to measure the progress towards the goals, incentives, identify the weaknesses of the team members, and plan for future achievements.

The type of Sales Metrics you use depends on the type of business you have. Let’s say if you have an online website, you need to measure the new visitors, bounce rate, speed of the website, etc. 

However, there are a number of Sales Metrics to track, that you must know if you own a business. Without tracking these essential metrics, you will not be able to monitor your team’s performance and take essential steps to improve the ROI of your business. 

If you are still struggling with How to Track Sales Metrics, here’s a simple way to track your useful sales metrics.

How to Track Business Metrics?

The Business Metrics are usually tracked on a KPI Dashboard. It indicates that whether the company has achieved the goals in a designed time frame. There are many sales metrics but it is not necessary to track all. You should rather know which sales metrics to track that can really show how your business is doing.

The fastest and the most productive solution to increase your business success is providing customer satisfaction by measuring the sales metrics relevant to your business. By measuring the B2B sales metrics, you will be able to identify the products/services by which your customers are highly satisfied and also the products by which your customers are not satisfied.

Doing this will help you improve the products/services for higher customer satisfaction. 

Benefits of Measuring Sales Metrics

Measuring Sales Metrics has a lot many benefits which include Offering real-time insights, helps you recognize problems in your team and business, shows the performance of your sales team, enhance customer service, Improves resource allocation, Allows you to create/modify products you offer, and many more.

Hence, knowing how to track business metrics and what type of sales metrics you need to measure for your business growth is highly important. There are enormous types of sales metrics, but choosing the right sales metrics can help you achieve the goals you desire.

Organizations and the sales force need to change and become more efficient when businesses start. Salesforce should improve by analyzing the sales metrics. However, here are some key sales metrics that every business should keep track of. These useful sales metrics mirror your company’s performance and indicate your company’s growth or decline.

7 Sales Metrics that Matter

Want to know about How to measure sales performance metrics? The list of 7 sales effectiveness metrics can help you make decisions about your sales process and also help you grow your business and keep your sales pipeline full.

1. Sales Revenue

Sales Revenue Metrics can tell you a lot about your company’s growth. It can help you to know whether after months people are interested in buying your product/service or not, are the efforts you are putting in paying off, or is your organization still a competition, and many more.

The most appropriate way to increase your sales revenue is by increasing your sales. This can be done by offering new discounts, hiring more efficient salespeople, or by expanding your target market. Rather than thinking of it as a quick strategy, it should be a long-term strategy for sales.

2. Qualified Leads Per Month

As your company comes into competition, you will probably be getting hundreds of leads for your business, but not all the leads have the ability to become your potential customers. Hence, there is a need to measure the number of qualified leads per month.

The Sales Conversion Metrics shows that whether you are targeting the right market and that too with the potential of attracting new customers. If you observe a decline in the number of qualified leads, probably there is a need to re-evaluate your sales strategy.

3. Monthly Website Traffic

One of the best ways to check your company’s performance is by monitoring monthly website traffic. The more people will hear about you, the more people will visit your website. Free tools like Google Analytics can help you keep a record of all the website visitors.

The easiest way to increase website traffic is to advertise on different channels. You can also increase your website traffic by getting free press coverage, and ranking it on the search engines.

4. Customer Loyalty and Retention

Loyal Customers can benefit your company in many ways. They can even provide you referrals for your business. Retention rate helps you know the clients who make the repeat purchase.

You can increase customer loyalty by providing great customer care service and by delivering high-quality products to your customer. The number of satisfied customers indicates the success of your business over time.

5. Conversion Rate

Converting Leads into potential clients asks for a lot of effort and time. Lead to customer conversion does not happen on its own. Your sales team needs to contact the leads, brief them about the product/service to convert them into paying customers.

The Conversion rate metrics reflect your team’s performance as a whole. If they are unable to convert the clients, they need to work on their presentation skills so they can better convince the clients into paying customers. Conversion Rate Metrics are important metrics for sales operations.

6. Highest and Lowest Selling Product/Service

In every business, there are certain services/products that are sold more as compared to the others, and also some products which are very less sold. The business owners sometimes get so happy seeing the highest-selling product/service that they start ignoring the lowest ones and never improve them.

Hence, it is important to keep the track of the highest and the lowest selling products/services so that you can improve the lowest selling products. If something is sold well, you should take the feedback of the customers. It helps in improvising the lower selling products.

7. Staff Productivity

Tracking staff productivity is one of the unique sales metrics every business does not track. Staff Productivity is an important factor when it comes to business success. An under-performing staff is obviously not a good sign of your business.

It is important to track staff activities so that you can assign the roles and responsibilities accordingly. If a receptionist is spending her day making calls, you need to track the number of phone calls and the type of phone calls she makes. The idea behind this is to track whether there are any repeat calls and if yes then she can improve it.

Knowing how to track metrics is an important factor for your business. Instead of spending time tracking all the sales metrics, spend time tracking the sales metrics that are suitable for your business and can help you improvise and grow your business health. 

While there are many more Sales Metrics that companies keep a track of, these 7 sales metrics are the most important and are measured by almost all successful companies.