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Key Sales Metrics Every Business Should Track

Tracking the wrong sales metrics can lead to resources being allocated in the wrong direction for the business. In this article, we take a look at which key sales metrics every sales team should track.

Why Track Metrics?

Successful businesses collect and assess metrics in almost every area of operations from HR to finance. Doing this helps them gain a clear idea of their past and current performance. Data collected can be used to track progress towards business goals, structure incentives and bonuses, identify current and potential issues, and steer your business towards future growth.

Many businesses already measure some sales metrics such as sales revenue as a way to identify the performance of their sales team. However, growing your scope of sales metrics will help you increase visibility and understanding of individual and sales performance as a whole.

Taking the time to consider which sales metrics give you the best and most actionable insight into your business will help you ensure that any resource spent on metric collection and analysis will drive the biggest possible return on investment.

Company Goals & KPIs

Every sales metric you collect should show you how well the sales function helps the business move towards its ultimate goals. Measuring metrics against company KPIs can be a good way to highlight sales overall effectiveness.

These metrics are unlikely to provide you with granular detail on how to optimize your sales but will highlight potential issues that can be investigated further by diving deeper into thedata.

Key metrics that you may measure here include:

  • Total revenue
  • Revenue by product or service
  • Revenue by market or business area
  • Revenue generated by new business
  • Year-on-year growth
  • Market penetration

Sales Metrics

They say you improve what you measure. So, taking the time to consider which sales metrics are most important to your business will help you drive improvement in the areas that count.

By doing this, smaller businesses can create a competitive edge, driving focus and resources into the areas that develop the greatest return.

Want to dive deeper into sales data and why it’s important for your business? Check out our article Does Your Sales Data Hold The Key to More Sales?

Which metrics could you measure that would help increase business performance?

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