A key performance indicator (KPI) is a measurable value used to evaluate how successful a person or organization is at reaching a target. KPIs help organizations identify strengths and weaknesses, make data-driven decisions, and optimize performance.
Below, we share some examples of Sales KPIs, RevOps KPIs and Customer Successs KPIs.
Sales KPIs
- New customer acquisition is the number of new customers that a company acquires in a given period of time.
- Customer lifetime value is the total amount of revenue that a company can expect to generate from a customer over the course of their relationship with the company.
- Sales pipeline is the number of potential customers that are in the process of being converted into paying customers.
- Sales conversion rate is the percentage of potential customers that are converted into paying customers.
- Sales cycle length is the average amount of time it takes to convert a potential customer into a paying customer.
RevOps KPIs:
- Net revenue is the total revenue that a company generates after deducting the cost of goods sold.
- Gross margin is the percentage of revenue that a company retains after deducting the cost of goods sold.
- Operating margin is the percentage of revenue that a company retains after deducting the cost of goods sold, operating expenses, and other operating costs.
- Return on sales is the percentage of revenue that a company generates in profit.
- Return on investment is the percentage of money that a company makes back on its investments.
Customer success KPIs:
- Customer satisfaction is the degree to which customers are satisfied with a company’s products or services.
- Customer retention is the percentage of customers that continue to do business with a company after a certain period of time.
- Customer churn is the percentage of customers that stop doing business with a company after a certain period of time.
- Customer advocacy is the degree to which customers are willing to recommend a company’s products or services to others.
- Customer lifetime value is the total amount of revenue that a company can expect to generate from a customer over the course of their relationship with the company.
The success of KPIs can be measured by tracking their performance over time and comparing them to targets or benchmarks. If KPIs are not meeting targets or benchmarks, it may be necessary to make changes to the company’s strategy or operations.
To measure the success of your KPIs, follow these tips:
Set clear and measurable targets. KPIs should be specific, measurable, achievable, relevant, and time-bound.
Track KPIs over time. It is important to track KPIs over time to see how they are performing and to identify trends.
Compare KPIs to benchmarks. Benchmarks can be used to compare KPIs to other companies in the same industry or to historical data.
Make changes as needed. If KPIs are not meeting targets or benchmarks, it may be necessary to make changes to the company’s strategy or operations.
Additional resources:
– 10 essential metrics to track before investing in a sales enablement program
– The most powerful, actionable sales metrics: Webinar recap