Which KPIs Are The Most Important? 10 Business Development

Moving products and services to meet a company’s bottom line sales figures can play a huge factor in both increasing and reducing the stress levels of even some of its top salespeople every time.

If the sales team wants to stay consistent at hitting its mark on a monthly, quarterly and yearly basis, they should focus on the weakest key performance indicators and then work their way backward in order to reach their common goals.

To learn more about KPIs that are crucial to pay closer attention to, here are 10 suggestions that come highly recommended from a panel of Forbes Business Development Council members.

1. Growth And Sales Cycle Time

Growth and deal sales cycle time are the two top areas to encourage salespeople to focus on to launch business success as we continue in 2022. Focusing on growth rather than a quota helps sales professionals understand their unique contributions to a sales organization, as a focus only on quota can create a false sense of contribution depending upon the quota setting. Cycle time drives the pursuit of speed – Jen Bailin, SAP

2. Monthly Average Strategy

Beating your monthly average is a way to hit your quarterly goals sooner. If you typically sell 10 deals a month, how can you sell 12 instead? You’ll find the answer in your activity and pipeline data. Look for how many appointments you do per week, your win rates, average days to close a sale and the size of your pipeline. Pick a focus area to improve, track your results and repeat. – Serrah Linares, Change Healthcare

3. Weakest Metric Improvement

Salespeople need to collect factual data on their conversions and then focus on improving their weakest metrics. For example, are you prospecting tons of people but scheduling a few appointments? Are the appointments you are scheduling falling through? Are you presenting frequently but closing little? Track your stats! Numbers tell a story and that story is how you can reach your sales goals sooner! – Adam Webb, Sunder Energy

4. Number And Quality Of Follow-Ups

The most important KPI salespeople should be focusing on is the number and quality of follow-ups. The majority of sales are not made in the first three conversations. High-level or dollar sales are made through the building of relationships and the providing of value. Approximately 10 to 20 connections are the norm for relationship-based sales, and every one of them needs to lead with value. – Jethro Hopkins, Fulcrum HR Consulting LLC


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5. Work Backward To Calculate Your Goals

It’s important to track and understand the significant pipeline of milestones and metrics. Focus on the number of dials and emails; connects and responses; opportunities and deals, as well as the average deal size. Calculate ratios of each metric to one another per salesperson. Then work backward to calculate what activities each salesperson must do in order to achieve their quota. Recalculate constantly to see progress and what work remains within a month, quarter and year. – Douglas McDowell, SolarWinds

6. Sales Portfolio

All KPIs for sales are usually set around the lead generation sales funnel. Both business-to-business and business-to-consumer consist of three major metrics: sales lifecycle, conversion rates and lead generation velocity. Based on your product, the unit economics and sales strategy, each of the salespeople forms their own sales portfolio. Moreover, different pipelines of that portfolio might have different key metrics to track. – John Popel, Social Links, Inc.

7. Renewal Rates

There are many that are relevant, but one we really focus on is renewals. They say so much about the value of your solutions, which provides insight into product enhancements that help deliver even more value. Renewals also say a lot about the effectiveness of customer success programs and how these can be improved. Acting on these insights helps KPIs like pipeline, closure rate, new logos and more. – Stephen Timme, FinListics Solutions

8. Time

Time is your most valuable asset. Are you tracking how and where you are spending your time? Your top sales opportunities or role behaviors should be consuming the majority of your time. If they are not, you should be reallocating how you spend your time. – Jeff Hicks, Fastenal

9. New Prospect Meetings

The most important leading indicator for a sales professional is meetings with new prospects. First meetings drive new opportunities that ultimately result in closed business. Every sales professional should know their conversion ratio so they can answer the question “What would one more meeting each week do for my quarterly sales results?” and then go book that extra meeting! – Ray Makela, Sales Readiness Group

10. Opportunities To Create And Advance

Most sales professionals measure results. Did I close the deal or not? Did I achieve my goals or not? However, that is like driving down the road only looking through the rearview mirror. The key KPIs should be leading indicators; activity, opportunity creation and opportunity advancement are a few best practices. – Julie Thomas, ValueSelling Associates

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