December 6, 2023

15 Essential Sales Performance Metrics You Need To Know

Table of Contents

What are Sales Metrics?

Sales metrics are data points that track the effectiveness of both your sales team and individual salespeople. They are often referred to as key performance indicators, or KPIs. Sales metrics are utilized in a variety of ways, including goal-setting, identifying areas of weakness, creating incentive programs, computing commissions and bonuses, and more. There are two types of sales metrics: leading and lagging indicators. Lagging indicators display the previous accomplishments of your sales force. Leading indicators provide insight into your salespeople's future performance based on their current actions. Metrics like sales by lead source or total revenue are examples of trailing indicators. Metrics such as the quantity of emails or phone calls made are examples of leading indicators. Leading indicators are determined by the current actions of your team. Forecasting the future is made easier when data from leading and lagging measures are combined.

Types of Sales Performance Metrics:

There are four main categories of sales performance metrics: productivity, efficiency, quality, and quantity. Every of them offers a distinct viewpoint and valuable insights to enhance and optimize sales performance.

Quantity Metrics: 

Quantity metrics give a numerical picture of operations by assessing the number of sales activities.

1. The quantity of calls placed

The total number of outreach calls that the sales team has placed. Add up all of the calls that every salesperson has made in a given time frame.

2. Amount of Closed Deals

The total quantity of concluded deals or successful sales during a given period of time. Add up all of the deals that were designated as "closed-won" during the time frame you selected.

3. Mean Transaction Amount

The typical revenue worth of each transaction or deal that a sales force secures is determined by looking at the Average Deal Size.

Total Revenue Earned / Total Number of Won Deals Equals Average Deal Size.

Quality Metrics:

Quality measurements reveal a salesperson's effectiveness in converting leads and offer information about their level of leadership. Best practices will be ingrained by a great sales leader, increasing conversion rates and improving customer satisfaction.

4. Success Ratio

The proportion of closed deals to the total number of deals that were pursued.

Win Rate is equal to (total deals pursued / won deals) x 100.

5. Rate of Conversation

The proportion of leads that become paying clients.

Conversion Rate is calculated as (Number of Leads / Total Conversions) times 100.

6. Contentment with Customers (CSAT)

A measure, typically obtained through surveys, of an existing customer base's level of satisfaction with a product or service. Customers are usually asked to score their satisfaction on a survey scale of 1 to 5, which is how this measure is calculated.

Total happy customers (score of 4 or 5) / Total number of responses equals CSAT.

7. The score of Net Promoter

The probability that a client will refer a business's goods or services to others is gauged by the net promoter score (NPS).

Percent of Promoters (9−10) – Percent of Detractors (0–6) = Net Promoter Score


How well is your sales funnel operating? Efficiency metrics identify areas for simplification and improvement by evaluating the efficacy and speed of the sales operations.

8. Length of Sales Cycle

The average amount of time a lead takes from first contact to deal closure as it moves through the sales funnel. The customer acquisition cost (CAC) will decrease with a shorter sales cycle. Length of your sales cycle is calculated as follows: total days to close sales / total number of transactions concluded

9. Time of Lead Reaction

How long it usually takes a sales representative to reply to a new lead or query.

Lead Response Time is the average of all leads' times within a given timeframe (Time of First Response - Time of Lead Receipt).

Sales Productivity Metrics:

Consider sales productivity as the return on investment (ROI) for your sales team. For the amount of work your salesmen put in, how much are you getting in return? In addition to sales enablement KPIs, sales productivity measurements demonstrate the effectiveness of the sales team's work by analyzing the return on investment from team activities.

10. Rate of Churn

This attrition measure shows the percentage of consumers that stop using a product or service within a specified period of time. Excessive turnover rates may be a sign of problems with customer service, product fit, sales performance, or other areas.

Customer at the beginning of the time period - Customer at the end of the time period) / Customer at the beginning of the time period x 100 = Churn Rate.

11. Growth in Revenue

Growth in revenue is the rise in revenues for a business over a given time frame.

Revenue Growth is calculated by dividing total revenue in the previous period by total revenue in the current period, multiplied by 100.

12. Recurring Monthly Income (MRR)

Businesses using subscription-based business models use MRR as a metric to measure the total predictable revenue they may expect each month.

Total Accounts That Month x Average Revenue Per Account equals MRR.

13. Reaching the Quota

The percentage of vendors that reach or surpass their allotted sales targets is monitored by quota attainment. Keep an eye on this indicator to determine which salespeople require coaching and who can exhibit superior practices.

Quota Attainment = (Total Number of Reps / Number of Reps That Achieve Sales Quota) × 100

14. Close Rate for Each Sales Representative

The typical quantity of transactions that each sales representative closes successfully in a given amount of time.

Total Number of Closed Deals / Total Number of Salespeople = Deals Closed Per Sales Representative

15. Rate of Customer Retention (CRR)

CRR calculates how many clients a business keeps over a given time frame. Because keeping consumers encourages recurring business, it is a sign of a healthy business. This and customer lifetime value (CLV) work hand in hand because both measures assist in identifying the customer segments that are important to your company. CRR is the sum of the number of customers at the beginning and end of a given period (week, month, or quarter) minus the number of new customers gained during that period.


Every firm is driven by sales. Your company's growth will come to a stop if your sales team isn't operating at its peak, regardless of how excellent your product, service, or knowledge may be. Monitoring sales performance is now more important than ever to make sure every member of the sales team is working as efficiently as possible.