A sales manager is critical to the revenue growth of any business. The sales manager is responsible for a variety of tasks such as setting sales targets, adjusting sales strategies, leading their team, and much more. Balancing all these responsibilities can often be overwhelming making it difficult to stay on top of their team’s performance.
Struggling to define sales manager KPIs to track and improve your sales strategy? Don’t worry, we’ve got you covered! We will present the 7 most important KPIs for sales managers that will boost your team’s performance and sales results!
Importance of data-driven decision-making for sales managers
Taking decisions based on data will enable you to boost your sales and grow your revenue. Sales are a crucial element of your overall business success because they generate revenue and allow businesses to grow. To stay on top of your sales numbers, KPIs for sales managers help to track critical data and the monitoring of operational performance. Tracking the right KPIs will assist in making data-driven decisions, providing better customer value, and driving long-term success.
7 most important sales manager KPIs
1. Pipeline Value
The value of the sales pipeline is one of the most vital KPIs for sales managers. The value of deals in the sales pipeline is measured by the pipeline’s total monetary value. This KPI for sales managers is crucial since it predicts how much sales revenue your sales team is expected to produce in the near future. A strong pipeline value shows that your sales team is effectively converting potential customers into actual ones. On the other hand, a poor sales pipeline value, can indicate problems with lead acquisition or a sales cycle with significant issues.
Obviously, as a sales manager, you wish to boost sales revenues and expand your customer base. Monitoring pipeline value KPIs will help in optimizing your sales strategies and objectives, thereby skyrocketing sales!
2. Sales Conversion Rate
The sales conversion rate measures the percentage of leads that become actual customers. Many factors, such as the sales process, the quality of leads, the duration of the sales cycle, and even market competition, can influence the sales conversion rate. Each component of sales should be carefully assessed, and any necessary adjustments should be executed without delay.
This sales conversion rate KPI for sales managers evaluates the performance of the whole sales team and change sales goals to make the most sales. Remember – you should give all the needed resources to your team: training, materials or common meetings, which will definitely increase your conversion rate!