Nobody likes to be told how to do their job. Even worse is being told how you should be measuring your performance. In fact, if you were to do those things to me I would immediately move your email to my junk folder and mark you as spam! I don’t have time for negativity or brown-nosing; I’m here to chew bubblegum and write mind-blowing blogs, and I’m all of out bubblegum! However, Salesforce recently released their third State of Sales report, so we’re going to be talking all about measurement and sales KPIs.
We must be sure that all of our activities are contributing to the bottom-line and contributing in a meaningful way. And so, enter stage right: sales KPIs. There are plenty of kinds of KPIs out there but oftentimes the ones most people care about are sales KPIs. It makes sense, though. People want to quickly know how well an organization is performing, and oftentimes the easiest—and quickest—way to do that is by looking at sales KPIs.
In their survey of nearly 3,000 sellers and sales leaders, Salesforce included some questions about sales KPIs and tracked the results to gain an understanding of which sales KPIs are the most popular around the globe.
Popular Sales KPIs
Two of the most popular sales KPIs won’t come as a surprise. The real surprise is at the top of the list, and it speaks to an emerging trend that’s worth exploring. The number one sales KPI in popularity is: customer satisfaction! 66% of respondents said they tracked it as a sales KPI, and 23% said they would be tracking it as a sales KPI in the next two years.
I’m not sure about you, but that’s a big shock to me. Maybe I’m just a slack-jawed simpleton (probably), but I don’t often think about Sales as being super dialed-in to customer satisfaction. Obviously, sellers care about customer satisfaction because it’s way easier to sell something customers are satisfied with than the opposite. But for this to be the most popular sales KPI comes as a shock.
The idea that customer satisfaction is the most popular sales KPI speaks to an overall, larger trend. Organizations, now more than ever, are focusing on customers. As Salesforce puts it, this sales KPI “puts sales teams in good company, as metrics are leaning towards customer experience no matter the department.” Sellers are adapting, just like everyone else, and realizing that if customers are happy, then their job gets a whole lot easier.
The remaining two sales KPIs won’t shock you nearly as much. In fact, I would venture they’ve been two of the most popular sales KPIs since old Korg started selling rocks to the other Cro-Magnons. There may be one surprising twist to the rankings, but let’s dive into the statistics before we get to that.
Tied for 2nd and 3rd most popular sales KPIs are team quota met, and individual quota met, respectively. Both came in with 65% of respondents saying they measured these sales KPIS. (Side note: who isn’t tracking these KPIs? If you’re one of them, you’ve got some things to sort out.)
The interesting wrinkle to these two is the fact that they’re tied. It would seem like the individual quota would be the most popular between the two sales KPIs. Organizations want to know how individuals are performing and if they are contributing in a meaningful way. But it looks like these organizations may care just as much about how overall teams are performing as they do about individuals.
These sales KPIs offer a glimpse into some changing trends in the sales world. Customer satisfaction is becoming a bigger focus for organizations and concentrating on building strong performing teams is almost as important as training strong individual performers. Is your organization tracking these sales KPIs?
Before you go let’s just take a quick look at the top-10 sales KPIs as identified by the State of Sales report:
- Customer Satisfaction
- Team Quota Met
- Individual Quota Met
- Customer Retention/Attrition
- Customer Usage
- Conversion Rate
- Activity Quantity
- Customer Acquisition Cost
- Customer Lifetime Value
- Pipeline Accuracy