Top Sales Metrics and KPIs Your Team Should Be Tracking In 2023

In today’s data-driven world, sales managers have no shortage of data to track. Every day sales reps generate tons of data, but narrowing down and understanding the most valuable metrics can be a challenge.

Because sales are a primary source of revenue, measuring the right sales metrics is critical and can impact profitability, growth, and overall business success.

First off, sales metrics are figures, data, or statistics used to measure and assess sales performance. Metrics serve as a tool to compare the performance of individuals and teams over a period of time.

Tracking the right metrics can make the difference between profitability and loss. Here are some reasons why tracking sales metrics are so important.

Evaluate the Effectiveness of Sales Process: Sales performance metrics can help sales leaders monitor their teams' progress and get valuable insight into the effectiveness of the sales process.

You’ll Know What to Spend Time On: Managers and teams can ensure that time and resources are spent on value-adding activities.

Improve Performance The metrics can indicate areas for improvement, allowing the sales leaders to adjust operations and sales activities accordingly.

Identify Problems and Areas for Improvement: Sales leaders can also use this information to assess individual team members' strengths and weaknesses. Managers can use this information to coach sales reps to achieve better results.

For example: If you notice your sales rep is not spending enough time on each call, you can listen to call recordings of their interactions and figure out the problem. Maybe they aren’t overcoming objections or are lacking in product knowledge. Once you have identified the issue, you managers can address it with the right actions.

A sales development team consists of SDRs or sales development representatives who find and qualifies new leads for account executives and salespeople via telephone. This team plays a vital role in building sales pipelines, so it's important to set metrics and KPIs that determine the SDRs success.

Metrics can show whether reps are successful on calls or if they are lagging in parts of the sales process. With this information, managers can see what is and isn’t working and influence future outcomes with additional support and coaching.

Conversations Per Day:

A sales rep's number of daily conversations will indicate how well they connect with prospects. This is important as the more meaningful conversations they have, the more likely they are to meet their quotas.

Use call analytics & dashboards to capture call data like this. You’ll gain a greater understanding of your metrics and uncover opportunities to work with your staff and improve their performance.

Total calls per day

The average number of sales calls or emails per day will help your sales reps attain set quotas. Using dialing technology or integrating your CRM with your phone system is one way to ensure reps maximize dials and increase total daily calls.

Average Call duration

You will get an indication of the quality of conversations your reps have by monitoring how much time they spend on each call. Maybe the rep makes many calls, but the talk time is very short. This could indicate that they are not effective during those conversations. Perhaps they aren't asking the right questions, they aren't overcoming objections, or they are having difficulty closing the deal. Managers can offer coaching and support at this point.

Important Metrics for Inbound Sales Teams:

Inbound sales teams are often made up of reps and account executives responsible for inbound leads and closing deals with pre-qualified prospects. The right metrics can help you determine if sales reps are following up quickly and closing deals with prospects.

Quota Attainment

Quota attainment measures how well your reps meet their targets. This could be related to revenue, volume, profit, and activity. It is a simple and straightforward way to measure the strengths, weaknesses, and overall performance of your reps.

Opportunity Win Rate

Using this metric, you can measure the percentage of opportunities won and determine how often your sales team wins deals.

Related: Essential Metrics for Every Call Center

Important Metrics and KPIs to Determine Overall Sales Results

Total Revenue

An organization's total revenue is the sum of all income generated by all operational and sales activities. You can break this down further by tracking revenue by product, service, or sales rep.

Average Profit Margin

Calculates the average profit generated from a sale of a product, service or service category. Each product or service will have different profit margins, so it will give you a good indication of where and what to focus your efforts on.

Customer Acquisition Cost

You can use this fundamental metric to determine the cost of converting a lead into a customer. It shows how much money you’ve spent on getting the customer vs. the number of new customers gained within a specific time frame.

Related: Achieving Customer Success with Call Center Analytics

With so many sales metrics that need to be measured and tracked, the best way forward is to automate and streamline the process. You don’t need to (nor should you) keep track of your important sales metrics manually.

Tracking and measuring your most important metrics starts here:

1. Select a few sales metrics that are most important.

2. Decide how often to measure the metrics.

3. Collect your sales data in a CRM customer relationships management tool like Salesforce or Zoho. Here you can track metrics and KPIs in real-time via a dashboard.

4. Using integrations, connect your cloud business phone system to your CRM. You can make calls directly from your CRM and automatically track call data like call duration, number of dials, abandonment rates and more.

5. Analyze the data and look for trends that can help identify issues or opportunities.

6. Use findings to improve sales.

In 2023, it’s time to focus on quality conversations rather than the quantity of conversations. It's important to track metrics that ensure your reps are having quality conversations that lead to meaningful outcomes.

Using call metrics like those tracked by your Unified Communications system, you can create dashboards that not only track your entire team's performance but the performance of each rep.

Average Talk Time

This metric will show you how much time your reps actually spend speaking with prospects. It is possible for a rep to have 150 total calls, but the average talk time might only be a few seconds. In this case, the rep may not be engaging in effective conversations and may need additional training or sales tools.

Win Rate

This stat will provide insight into how often your team and individual sales reps are winning deals. A sales rep's ability to sell is largely determined by the quality of the conversations they have.

Revenue

It's all about revenue at the end of the day, and this metric will indicate the value that your sales reps are bringing in as a result of their sales activities.

When it comes to improving your sales, regularly tracking your metrics is a must. The figures will certainly reveal both opportunities and challenges within your sales process.

From there, you’ll know where to focus your efforts, and you can help reps maximize their strengths and minimize their weaknesses. Start by taking advantage of your unified communications system and capturing the right data.

If you’d like to get started with a unified communications solution but aren’t sure where to start, download our step-by-step guide which will take you through the process of choosing the right vendor and features for greater business success.