15 KPIs for sales that you must know of and measure

Here’s where sales key performance indicators (KPIs) will help you.

For any organisation to grow, it must evaluate the performances to improvise the strategic implementation of the sales process. To be able to review this is only possible when you are aware of metrics and have the relevant data.

KPIs for sales, therefore help in the competitive functioning of a sales team !

Sharing a list of KPIs for sales that we must be tracking. At all times. Without fail.


Your sales team must always be on its toes to reach out to potential customers and generate leads via making phone calls, meetings or sending e-mails. This is the way of keeping the sales pipeline full. The rate of contact becomes one of the focal point of sales metrics.

This is the number of new reach outs your sales team makes per day/week.

P.S.- It’s best to be using a good software or CRM tool to track this metric.


It is not necessary that the first contact will be the final sale deal with the customers. It’s is important that follow ups are done on the leads that looks promising. In a research it has been observed that many leads became an opportunity only after 3rd, 4th and 5th attempt. The following up can be via mail, text and by reminder cum courtesy call. One must never give up on a potential lead.

Calculate the number of follow ups made per week by the team with existing leads.


Nothing substantial is ever achieved without keeping a target. Your marketing employee/sales team must work towards weekly and monthly targets. An activity metrics weekly or fortnightly can help keep track of leads, follow-ups, and the closed deals. This metrics will help representative keep a tab on their own performance and have a general idea about the performance of the team. It is also important that the length of the sales cycle is measured. It shouldn’t take too long for the sales rep to close the deal and if it does take longer, then there is something amiss. Taking too long in closing a deal would lengthen the time to profitability and disguise other issue in the sales processes or the performance of the rep.

4) Reach-out per salesperson

This is the number of reach-outs made per sales team member per day/week/month depending upon the business need. For e.g. an insurance sales agent would make 100 plus calls a day but a sales executive dealing with multi-million sales deals would make ten calls a day with prospects.

Depending upon the business, the manager needs to decide “where less is more and where more is less”

5) Sales per Salesperson

This is the number of sales revenue generated by a sales executive per month.

This is a sensitive metric which relatively naïve managers use to compare sales people against each other. It is important to analyze the sales persons customers as well. Is he/she bringing in repeat customer compared to another higher revenue generating sales executive who fails to get repeat customers etc.

Also did the sales executive manage to sell the product to an influencer who will lead to much more sales over the future etc. compared to a higher sale this month guy who sold it by just peddling the product between friends.

6) Monthly Recurring revenue (MRR)

This is the monthly revenue brought in by the sales team with the customer making repeat purchase of the product or service.

MRR = Avg no of paying customers X avg amount spent by all customers

7) Pitch to Close ratio

This is the ratio between the number of pitches made to the number of deals closed thereafter.

Pitch to Close Ratio = (Total Number of pitches made/ Total number of deals closed) *100

These are few parameters that will help evaluate performances of your sales team. There are plenty of tools available that can assist you in keeping tabs on these parameters. It is essential to your sales process that you stay on top of these. Having an accurate picture of what is being done, and of what is not being done will go a long way in developing and evolving your sales team.

8) Product performance

The way the product moves depends not just on the skills of the salesperson. A products performance can be affected by external variables like the boost of sales right after a good piece of PR the product recently received. I can also go the other way, say a competitor slashed prices on their product, that will definitely reflect as a dip in your sales. By keeping an eye on this KPI Salespeople ascertain what needs to be done when.

This is the revenue generated per product offered

9) Average cost per lead

This metric measures the average expense you’ll have incur for acquiring a lead.

These expenses include everything from marketing expense to employee salaries. It provides a bird’s eye view of where your resources are being spent, thereby pointing out any unnecessary expenses towards converting a lead.

10) Customer Lifetime Value

Closing large number of leads is well and good, but it is vital to understand exactly how much these deals will bring in to the company over time. This is the only way that you can know the true value of the closed deals.

Customer Lifetime Value = Gross margin percentage X Average monthly subscription revenue per customer X (1/Churn Rate)

11) Average Conversion Time

The time it takes between the first touch point and closing of the deal is known as the conversion rate. The longer your conversion time then your sales team’s efficiency is proportionally lacking. For example if you have a product that’s $15/ month and you take 6 weeks to convert a lead, then there is definitely some deficiency somewhere.

Average Conversion Time = Total Time taken for Converion / Number of Leads converted

12) Average Purchase Value

This KPI provides the Salesperson with expected value of each sale. So they can understand the potential opportunity of each new customer. This metric can be used complimentarily with other KPIs to get a better idea of the customer’s purchase behaviour.

Some of the variables you need to take in to consideration to calculate the Average Purchase Value are: Purchase order, Value of purchase and number of units per purchase.

13) Monthly Sales Growth

This is probably one the most basic and important metrics a startup needs to keep an eye on. Monthly Sales Growth is a metric to assess the monthly fluctuations in the company’s sales revenue. By keeping a close track of this KPI you are able to act on the trends almost spontaneously rather than depending on hindsight.

14) Customer Retention rate

The calculation of this metric is the defining difference between today’s sales teams and the ones of old. Nowadays, especially in companies dealing with inbound marketing, sales teams are expected to be closing and deals and ensuring the retention of these deals.

This KPI shows the sales person how many of the customers he/she closed are staying back with their company.

15) Customer Churn Rate

Churn rate refers to the percentage of customer who have stopped using the company’s product over a period of time. Ideally a business needs to maintain as low a churn rate as possible. There are two types of Churn rates that you can calculate: Gross Churn rate, the rate at which the company is losing customer, and Net Churn Rate, the difference of Gross Churn Rate to Customer Acquisition Rate.

These KPIs for sales teams are key top-level metrics that one needs to maintain and remain updated on to know how the team is progressing.

If you found this article informative, you might find a related article on marketing KPIs interesting as well – 15 Marketing KPIs You Must Track To Be Ahead Of Competition.

To explore what a CRM tool can do for your business, try out Alore CRM for a 14 day free period and experience for yourself what sales automation can do for your business.


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