10 Sales KPIs

 

Here are my top KPIs for managing sales performance effectively:

1/ Sales Growth

Description: Measures the increase or decrease in sales over a specific period of time

Formula: (Current Sales - Previous Sales) / Previous Sales × 100


2/ Customer Acquisition Cost (CAC)

Description: Measures the cost of acquiring a new customer

Formula: Sales and Marketing Costs / Number of New Customers


3/ Customer Lifetime Value (CLV)

Description: Measures the expected revenue generated from a customer over their lifetime

Formula: Average Purchase Value × Number of Repeat Purchases × Average Customer Lifespan - CAC


4/ Sales Pipeline Coverage

Description: Measures the ratio between the value of potential sales in the pipeline and the sales target

Formula: Value of Sales Pipeline / Sales Target × 100


5/ Sales Conversion Rate

Description: Measures the percentage of leads or prospects that turn into paying customers

Formula: Number of Customers / Number of Leads × 100


6/ Average Order Value (AOV)

Description: Measures the average value of each order placed by a customer

Formula: Total Revenue / Number of Orders


7/ Customer retention rate

Description: Measures the percentage of existing customers who continue to purchase products or services over time

Formula: (Customers at the End of the Period - New Customers Acquired) / Number of Customers at the Start of the Period


8/ Net Sales

Description: Measures the total value of sales made, taking into account discounts, returns, and adjustments

Formula: Gross Sales - Returns - Discounts


9/ Sales per Employee

Description: Measures the amount of revenue generated per employee

Formula: Total Revenue / Number of Employees


10/ Sales Cycle Length

Description: Measures the average time it takes to close a deal from the initial contact with a lead

Formula: Number of Deals Closed/ Sum of the Time Taken to Close Each Deal​

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