Measuring sales isn’t always as simple as looking at the number of leads converted into customers. And driving prospects to a purchase has become increasingly complex. There are more nuances involved with all aspects of sales these days, which is why sales performance tracking is needed more than ever to ensure your startup and team are on the right path. But how can you do it? Here, we’re looking at how to measure sales performance tracking.
Sales performance tracking tips
- Total revenue
- Lead volume
- Quota attainment
- New versus existing customers
- Revenue by territory
How to measure sales performance tracking
Revenue is essentially the most important metric of any business, with the total revenue measured on any time scale. This can be monthly, quarterly or annually. The most common way is annual recurring revenue (ARR), as it gives you a larger sample size. ARR can be helpful for subscription-based SaaS companies as it tells you how much to expect from a customer in a fiscal year. ARR can help companies forecast future revenue when viewed over the long term.
Volume of leads
Closing a deal isn’t the only way to measure sales performance. The sheer volume of leads also acts as an essential metric. Using leads can be tricky as they aren’t all created equally, but tracking the number of calls, emails, and other forms of contact can indicate the level of sales performance. You’ll see how active sales reps are while also getting a better view of your funnel and how well it’s doing.
With quota attainment, you look at the percentage of deals a sales rep closes concerning their set quota over a specific period. Again, it can be measured per month, quarter or year depending on your sales cycle. This sales performance-tracking metric monitors how deals close against targets and highlights reps who may benefit from more coaching or guidance.
Percentage revenue from new and existing customers
How much of your revenue comes from existing business compared to new leads? This is an important sales performance tracking indicator because it lets you know where the lion’s share of your business goes. It can also influence strategies as you try to bridge the gap between the two and get your business to a place where it’s bringing in new business while retaining current clients.
Revenue by territory
Unless you’re a hyper-local business, there’s every chance that your customers come from all over. Using the revenue by territory metric as a KPI gives you clarity over your geo status and where the crux of your business comes from. For example, if you’re a hit with US audiences, you can focus more on creating content and sales pitches that speak directly to them. By splitting your revenue by results, you can look at where the crux of your business comes from.
It’s all in the tracking
Measuring is the name of the game. The more data points you have, the better your decisions. With the right sales performance tracking, you can set plans, change direction where necessary, and ensure your business is moving in the right direction.