How do you choose sales metrics that work for you?

1 What are sales metrics and why do they matter?

Sales metrics are quantifiable indicators of your sales activities, outcomes, and performance. They help you monitor and evaluate your progress, identify strengths and weaknesses, and improve your strategies and tactics. Sales metrics also enable you to communicate your value and impact to your managers, colleagues, and customers.

3 How to categorize sales metrics by type and stage?

The next step to choosing sales metrics is to categorize them by type and stage. There are different types of sales metrics, such as activity metrics, pipeline metrics, outcome metrics, and efficiency metrics. Each type measures a different aspect of your sales process and performance. You can also categorize sales metrics by stage, such as lead generation, qualification, negotiation, closing, and retention. Each stage has specific metrics that track your progress and results.

4 How to balance leading and lagging sales metrics?

The third step to choosing sales metrics is to balance leading and lagging sales metrics. Leading sales metrics are indicators of your future performance, such as number of calls, emails, or meetings. Lagging sales metrics are indicators of your past performance, such as revenue, profit, or customer satisfaction. You need both types of sales metrics to get a holistic and accurate picture of your sales situation and potential.

5 How to set benchmarks and targets for your sales metrics?

The fourth step to choosing sales metrics is to set benchmarks and targets for them. Benchmarks are the average or standard values of your sales metrics, based on historical data, industry norms, or best practices. Targets are the desired or expected values of your sales metrics, based on your objectives, goals, and plans. You can use benchmarks and targets to compare and evaluate your sales performance and identify gaps and opportunities.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?