Outcome-based KPIs focus on the effect of sales activities.
Posted: Sat Apr 19, 2025 6:40 am
While the image refers to the entire customer experience, it can help demonstrate how different goals will align at specific stages of the sales cycle.
To define your benchmark metrics, consider which data best indicates the path you should take to achieve your sales goals.
Revenue is often the most obvious choice. After all, new business equals business growth, right?
And that makes sense, but it's not always the most useful sales KPI . Using other metrics can have a greater impact, depending on the average ticket and the complexity of your offering.
These other metrics may include:
Closed deals. How many new clients do you have each month?
Average order value. How much do your customers spend on average when placing a new order?
Win rate. What is the ratio of deals won to deals lost?
Once you've defined your benchmark metrics, you'll be able to choose the KPIs your teams will be evaluated against.
What does KPI mean specifically in sales? Sales KPIs are metrics that indicate the effectiveness of your team's efforts in achieving company goals.
They are generally divided into two different categories:
1. Based on results
2. Activity-based
Each of these methodologies relies on its own corresponding metrics (some of which overlap) to measure the success of your sales strategy.
Recommended reading
Sales management, activities and objectives
How to measure sales performance with results-based KPIs
Results-based KPIs
They measure the overall performance of your sales teams based on the results they generate.
Key performance metrics will vary depending on the job title and goals. For sales managers, the most important operational sales KPIs are typically:
The number of deals in the sales funnel . How many deals bank database is your team currently working on?
Win rate. What is the percentage of deals won compared to deals lost?
Average amount per transaction. How much revenue does each new transaction generate on average?
Average time to close. How long does it take to close deals?
Sales revenue. The total income generated within a given timeframe. Preferably, profit margins are used, as they can indicate positive sales performance even when sales growth is stagnant.
Sales forecast accuracy . Sales forecasts are n't an exact science, but they're still key when it comes to forecasting revenue and measuring how close your teams are to meeting them. They also allow you to identify sales opportunities and sort them by importance (e.g., which ones are most likely to be realized), helping you save valuable time and resources.
Lead response time. How long does it take for representatives to respond to new inquiries and leads ?
To define your benchmark metrics, consider which data best indicates the path you should take to achieve your sales goals.
Revenue is often the most obvious choice. After all, new business equals business growth, right?
And that makes sense, but it's not always the most useful sales KPI . Using other metrics can have a greater impact, depending on the average ticket and the complexity of your offering.
These other metrics may include:
Closed deals. How many new clients do you have each month?
Average order value. How much do your customers spend on average when placing a new order?
Win rate. What is the ratio of deals won to deals lost?
Once you've defined your benchmark metrics, you'll be able to choose the KPIs your teams will be evaluated against.
What does KPI mean specifically in sales? Sales KPIs are metrics that indicate the effectiveness of your team's efforts in achieving company goals.
They are generally divided into two different categories:
1. Based on results
2. Activity-based
Each of these methodologies relies on its own corresponding metrics (some of which overlap) to measure the success of your sales strategy.
Recommended reading
Sales management, activities and objectives
How to measure sales performance with results-based KPIs
Results-based KPIs
They measure the overall performance of your sales teams based on the results they generate.
Key performance metrics will vary depending on the job title and goals. For sales managers, the most important operational sales KPIs are typically:
The number of deals in the sales funnel . How many deals bank database is your team currently working on?
Win rate. What is the percentage of deals won compared to deals lost?
Average amount per transaction. How much revenue does each new transaction generate on average?
Average time to close. How long does it take to close deals?
Sales revenue. The total income generated within a given timeframe. Preferably, profit margins are used, as they can indicate positive sales performance even when sales growth is stagnant.
Sales forecast accuracy . Sales forecasts are n't an exact science, but they're still key when it comes to forecasting revenue and measuring how close your teams are to meeting them. They also allow you to identify sales opportunities and sort them by importance (e.g., which ones are most likely to be realized), helping you save valuable time and resources.
Lead response time. How long does it take for representatives to respond to new inquiries and leads ?