Sales KPIs for B2B Companies to Drive More Revenue

Improve revenue by taking these KPIs into account.
sales operations kpis cover photo
How do you know that your sales reps are effective?

Measuring performance is crucial to identify areas of improvement and leading your sales team in the right direction.

This article talks about important sales metrics that B2B sales teams should focus on.

What are Sales KPIs and Sales Metrics?

Sales metrics and key performance indicators (KPIs) are frequently confused because all KPIs are metrics, but not all metrics are KPIs.

A sales metric is "a quantifiable measure of performance against a specific objective." It shows how successful a sales organization is at generating revenue, managing its costs, and generating gross profit.

Sales KPIs are the metrics that show how well your sales team is doing. KPIs should be specific, measurable, easy to track, and significantly impact the business.

They are essential for understanding where the team should focus their efforts and what they should try to accomplish.

KPIs are the most critical metrics in your business and should be leading your strategy.

You should review your sales KPIs at least once a quarter to understand better how the business is performing and if there are any areas you should improve.

6 Types of Sales Metrics (And the Best KPIs For Each)

Qualified Lead Conversion Rate

Once you've generated a lead, the next step is to get that lead "ready to buy." The more leads you can turn into sales-qualified leads (or SQLs for short), the faster your business will grow (and the bigger your sales numbers will be).

The sales-qualified lead conversion rate is a percentage that shows you how many of your leads are ready to be bought. This is also known as your close rate or sales conversion rate. - Close rate: This is the simplest way to track your sales conversion rate.

This metric shows you the percentage of leads sold to (or converted to SQLs) in a given period. - Close rate per channel: This metric is a little more complex, but it allows you to see how your sales reps and teams are performing across different lead generation channels. - Close rate per rep: This metric is by far the most complex.

It shows you how each sales rep is performing, giving you a clear overview of which reps are closing the most deals and which ones might need some help.

Monthly churn rate

The monthly churn rate measures the percentage of customers (or leads in the sales funnel) who stop using or purchasing your product or service during the month.

It's a measure of customer retention, which is often a leading indicator of customer acquisition. A high churn rate is problematic because it means losing customers faster than bringing in new ones.

It's important for SDRs to measure this metric because it can help you identify areas for improvement that can help you retain more customers.

This can help you scale your business more effectively.

The good news is there are a lot of ways to lower your churn rate, such as improving your product or service, providing better customer service, or creating a better user experience.

Monthly run rate

The monthly run rate measures how much your business brings in during a certain period. It's one of the most important metrics to track when calculating your sales forecast and is helpful during the sales process.

Calculating your monthly run rate is simple—just take the total amount of revenue you've made so far (or expect to make) for the month and divide it by the number of days left in the month.

This gives you an estimate of how much money you expect to bring in each day.

Run rate is especially useful when forecasting sales since it gives you a sense of how much money you need to make every day to meet your quota.

It's also helpful when you're making sales because it can help you create urgency around closing deals and booking appointments.

Lead generation efficiency

Lead generation efficiency is the ratio of leads to a certain metric, such as hours spent marketing. This metric helps you understand how much effort you need to put into generating leads versus how many leads you're actually generating.

SDRs should track lead generation efficiency because it can help you find ways to optimize your marketing efforts and spend less time on activities that don't produce results.

For example, you might find that you need to spend 10 hours per week doing in-person events to get 1 qualified lead, which isn't efficient. You can find ways to make your marketing more effective and efficient by tracking lead generation efficiency.

You can do this by spending more time on techniques that produce results, like cold emailing, or spending less time on techniques that don't, like spending hours on social media.

Monthly new lead quota

The monthly new lead quota measures how many new leads you need to hit your sales quota each month.

And while most sales teams measure it against monthly revenue, you can also track how many leads you need to close to make your quota.

You can track your monthly new lead quota in a few different ways. You can use a sales quota calculator to figure out how many leads you need to close each month based on your sales goal.

You can also use a lead funnel to track your progress and make adjustments as you go.

Tracking your monthly new lead quota can help you prioritize your time and make sure you're spending it effectively on activities that will bring you the most value. It can also help you identify any areas of your lead generation process that are causing a bottleneck.

Net Promoter Score (NPS)

Net Promoter Score is a customer satisfaction metric that helps companies understand how likely their customers are to recommend their products or services to others.

It rates respondents on a scale from -100 to 100, with -100 being extremely unhappy and 100 being extremely satisfied. Most B2B companies should be tracking their NPS—especially SDRs.

It's one of the best ways to measure lead quality and customer satisfaction. And it's a great way to track the long-term effectiveness of your sales efforts. Like most sales performance metrics, it's important to track NPS regularly so you can identify trends and make adjustments as needed.

You can use a customer survey tool like Intercom to track your NPS or a CRM like Salesforce to integrate it with your lead tracking.

How to Work With Sales KPIs

The best sales KPIs are determined by the most valuable metrics for your business. Every business is different and will have different sales KPIs based on its specific goals and challenges.

SDRs can help you collect sales data and identify your sales KPIs. They can track metrics such as close rates and average deal size.

You can still track these metrics if you do not have an SDR team.

To do this, create a spreadsheet with sales metrics. Then, use that spreadsheet to track your progress each month. Once you have a few months of data, you can start to see trends and improve your business.

Translating your sales data into KPIs is a great way to get a high-level overview of your sales performance. By tracking these metrics, you can better understand your sales numbers and identify areas for improvement.

How Outsourced SDRs Support B2B Companies

Sales KPIs are an important metric to track in every organization because they are what drives revenue.

SDRs who use metrics and KPIs to improve their performance know exactly where they stand. They have a clear view of their responsibilities and the data to prove they are successful.

Outsourced SDRs are known for being experienced salespeople: their understanding of sales KPIs is pretty advanced.

Outsourcing is something that you can use to your advantage as a business.

You don't have to spend time and money finding experienced SDRs. Nor do you have to hire green SDRs and train them to reach the level of an outsourced SDR.

Conclusion

Sales leaders must grasp the KPIs affecting their organization's performance to be effective.

As our article on sales metrics outlined, KPIs are often confused with metrics. KPIs don't measure everything, but they can be a great way to track and focus on the most important things in your business.

Setting goals and measuring progress is one thing.

Executing a strategy based on sales metrics and KPIs is another.

SDRs are the foundation of every sales team, and the better they are qualified for their role, the faster monthly, quarterly, and yearly goals will be reached.

If you want experienced SDRs with top-quality metrics to grow your revenue, don't hesitate to get in touch.
Post by Mattes Wöstemeier.
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