Tracking quality leads is one of the most important things that one business should focus on. At the end of the day, you want to make sure you attract people who would actually buy your product/service and would potentially become loyal customers.
To get potential clients, first, you need to make sure that your company/business is running smoothly and everything is on track. This includes everything that makes the performance of your business successful. I’m talking about sales performance, marketing, HR, customer support, etc. This is where KPIs are very useful.
What Are KPIs?
KPI stands for “Key Performance Indicator” and is a metric that shows you how your company is progressing and achieving objectives.
KPIs can help you track leads, evaluate the overall performance of your business, measure the financial stability of the company, and help you with marketing, sales, and customer support.
This metric can also help you figure out what you’re doing right or wrong in your business.
You can see by yourself which techniques work with your company and which don’t.
Your employees will also be able to track their progress and try to do their best to upgrade themselves.
Types Of KPIs
There are different types of KPIs that can help you with different types of problems and achievements. There are basic KPIs concerning menial things like measuring your monthly sales, and there are other KPIs that focus mostly on the big picture performance.
- Input KPIs- Let’s start with the easiest one. These indicators’ focus is to measure your company’s resources for big or small projects. This indicator can measure the time spent on the project, payment, and the equipment needed for the said project.
- Process Indicators- Are used for measuring if planned activities took place on scheduled time, for example holding meetings, training courses, and other educational activities.
- Output Indicators- These indicators are used for measuring if an activity is successful enough to bring progress to your company/business. This way, you can clearly see what works best for your business and what doesn’t so you can concentrate on the right exercises.
- Directional KPIs- Well, the name explains what this indicator does. This metric is used to see the time spent on controlling and bettering important issues like fixing your website and helping your clients have a pleasant customer experience. What this indicator does, is basically directs you towards building a flawless business.
Top KPIs Every Sales Team Should Know
The Quality of Your Customer Service
I mean, this is already very obvious, but good customer service can do miracles for your business. Clients are more likely to buy your services/product if there is a rep that can answer all of their questions or help them any other way they can.
Also, keeping in touch with your existing, loyal clients will benefit the company’s outlook and let them know that you care about your customers.
The Amount of Quality Leads
Every marketing team should focus on finding quality leads that would actually be interested in the product they’re selling. That’s called targeted marketing and it’s based on finding a specific group of people(potential clients). Instead of fishing for a large audience, try fishing for only selected leads that are likely to buy your services/product. The
Sales volume is the number of elements that are being sold in a specific amount of time and not the profit. By evaluating your sales volume you’re more likely to come up with new strategies to improve your sales, plus you get to keep track of which one of your sales reps made the most sales at that time.
Customer Lifetime Value
This key performance indicator allows you to measure the time that your customer has been using your services/products and the profit that you made from them over that time.
Customer Acquisition Costs
These KPIs track the costs that are made when a new customer is signing up for your business. Basically, this KPI measures how much your company spends in order to acquire new leads.
This includes marketing efforts, the total cost of sales, as well as any equipment. Customer Acquisition Cost is important for your business because it helps you measure how much one customer has value over it. For example, If your marketing costs and efforts to attract customers are bigger than your CAC, then your business wouldn’t be profitable.
Sales Target KPI
The sales target KPI helps you measure your current sale income and lets you compare that number with past performances, allowing your sales reps to track their sale progress, see how far they are from achieving their set goals.
This is a metric that measures your leads’ engagement with the content that you’re putting out(for example liking or sharing your posts). This KPI is mostly used in social media campaigning.
You can use this KPI to review your performance and see the overall likes, comments, clicks, and shares that you get each month.
The conversion rate is the number of conversions being divided by the number of visitors that complete an action. For example, if a site gets 800 visitors a month but has made an amount of 70 sales, then the conversion rate will be 70 divided by 800. This KPI also helps you measure the performance of your campaigns and marketing efforts.
Close-ratio is a KPI that allows your sell reps to see how effective their performance is and how close they are to closing a deal with a potential customer. This KPI is also a great way for sales managers to track the effectiveness of the sales strategies.
Close-ratio is calculated by dividing the number of closed deals with the number of leads one salesperson had during a time period. If the salesperson closed 20 deals in a month but had 80 lead opportunities then you divide those 20 with 80.