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Growth = Awareness + Customer Acquisition + Conversion Rate
How many new customers are you receiving each week from your lead capture systems and marketing campaigns? The metrics will vary depending on your business niche and industry. Here are a few Key Performance Indicators (KPIs} you should be tracking in your business!
Key Performance Indicators
A performance indicator or key performance indicator is a type of performance measurement. KPIs evaluate the success of an organization or of a particular activity in which it engages.
Average Cost Per Lead
This KPI answers the question: How much does it cost to generate a single lead?
This is the ratio between closed deals and the number of leads generated in a specific time period (i.e., one month). This KPI helps sales teams see if leads were quality, which methods may work best in closing future deals, and if particular offerings/messaging made an impact.
Sales Channel Effectiveness
This metric answers the question of which sales channel has the highest conversion rate and sales cycle time. This KPI answers the question where the sales team should be focusing their efforts or activities to phasing out because they are ineffective.
Sales Targets and Opportunities
The sales target KPI establishes sales revenue goals over a period of time and tracks the performance of the sales and marketing teams. Sales opportunities is an organizational sales KPI tracks pending opportunities in the pipeline as well as a management tool to ensure the sales team is focused on the best prospects. Setting attainable sales revenue goals both on an individual and team basis can inspire performance and keep sales efforts aligned.
This metric measures the increase or decrease of your sales revenue on a monthly basis. Monitoring sales growth from month-to-month helps sales leaders to determine if their sales strategies are successful and to proactively act on sales revenue trends as they are happening.
Other Important Metrics
- Orders Cancelled by Reason
- Average Profit Margin
- Revenue from Top Customers
- Sales Growth by Market Segment
- Sales Force Effectiveness
- Missed/Lost Sales Opportunties
- Customer Acquisition Rate
- Days Sales Outstanding
- Average Order Size & Frequency
- Sales Backlog
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