OK, the first KPI is not strictly a Sales KPI, it’s a Marketing KPI, but Sales is not an island and not knowing about and tracking MQLs stops you from predicting future shortfalls and using the KPI is calculations that evaluate the quality of MQLs being generated like the MQL to SQL Conversion.
A common way to convert an MQL to an SQL is to have a Discovery call with the Prospect. The % of MQLs that receive a completed Discovery Call is a good KPI to track as it allows you to target and improve your ability to get prospects on a call, to understand their needs more specifically, and kick-off the sales process.
Having a count of the number of Discovery Calls booked allows you to plan how many you calls you need to allow your Sales Funnel to hit quotas.
Not all calls booked happen. Knowing the number of meetings that are booked and then happen allows you to plan to improve number of completed meetings.
A sales-qualified lead (SQL) is a prospective customer that has been researched and vetted — first by an organization’s marketing department and then by its sales team – and is deemed ready for the next stage in the sales process.
The conversion % of MQLs becoming SQLs matters as a guide to the quality of MQLs being created, and the effectiveness of the Sales team to convert an MQL into an SQL.
Tracking and having a goal for the average number of SQLs assigned to each Sales Rep during a month allows you to plan and optimize the top of your funnel so you have optimal deal flow.
Based on the outcome of a Discovery Call you might sell a product that requires demonstration e.g. software. The conversion % of SQLs to Demos Complete is a useful KPI as it allows you to set goals.
An Opportunity is neither a business, nor a person, but rather a potential future sale. An Opportunity is something associated with Revenue and as such has a monetary value. Growing the monetary value of the Opportunities in the Pipeline is a good KPI. You do need to be careful that Opportunities are owned, kept accurate, and weighted.
The probability of closing an Opportunity can be applied to create a Weighted Value of the Sales Opportunities. Again, this is a good Team and Individual KPI. Auditing how accurate estimates are and adjusting the criteria for setting a weighting is important for this to consistent and trusted.
Tracking your ability to convert the Opportunities you have to Closed Won at the team and individual level allows you to see who and how you can increase your conversion rates.
Having a count of number of Opportunities Closed Won is a good KPI, especially when paired with Closed Won Value.
This is the business end of the funnel. This KPI tracks the value of Opportunities Closed Won. This is another Team and Individual KPI.
Tracking the Average Contract Value as a KPI allows you to plan to increase it through goals.
The value of Opportunities Closed Lost is the flipside of the Closed Value coin. Seeing the value of deals lost is always sobering and focuses the mind brilliantly.
Again, a simple count of the number of Opportunities Closed Lost.
The average number of days it takes an SQL to become a Closed Won sale is your Sales Cycle. This KPI is normally expressed in days.
Sales Velocity measures how quickly you’re generating revenue. It captures the amount of time it takes to turn your SQL into revenue and is expressed as Money Per Time Period. Calculation: Sales velocity = (SQL Count * Deal Value * Conversion) / Sales cycle.
Having Sales Velocity as a Sales KPI so you can plan to reducing it via Goals and Initiatives allows you to close more deals faster.
Ramped Reps are Reps with a Pipeline that is delivering a full Sales Quota. Having the optimal number of Rampted Reps to hit Sales targets is essential but not as easy as it sounds. Ramping Reps not only requires training and time, it requires other parts of the funnel to also scale, MQL and SQLs for example.
Of course you want 100% of Reps hitting their quota. Tracking what % are actually making quota each month is a great Sales Leader KPI.
If you want to improve KPIs, creating KPI Dashboards is the natural next step.
These KPIs can and should also be used inside Key Results as part of setting goals using OKRs. Remember that when setting your targets to be ambitious. Goals are deliberately designed to be hard to achieve, as this is what drives greater creativity, efficiency and effectiveness.
The data can be gathered from integrations with Salesforce and other Sales and Marketing technologies you’re using, or update KPIs manually.
Inside ZOKRI you can create Dashboards and create OKRs from KPIs. You can also create and manage Initiatives targeting these KPIs and OKRs in ZOKRI or by connecting task managers like Trello and Asana.
Measuring KPIs that matters, setting goals and aligning and optimizing your operations is the key to performance growth and is what ZOKRI is designed to do.
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