One of the best ways to monitor your KPIs is with a sales dashboard. Whether you use a well-known service like Salesforce.com or an in-house sales panel, make sure you add these eight KPIs to your sales dashboard to keep track of your progress.
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Although it might seem like a small, inconsequential metric, daily sales is one of the most important KPIs to keep track of. Monitoring your daily sales keeps your team focused and motivated towards achieving its daily sales targets.
Keeping track of your daily sales also lets you spot days that perform well for your sales team and days that perform poorly. Many companies, for example, notice that their conversion rates for B2B products are higher on Mondays than on Fridays.
Knowing when your team is likely to succeed and when it’s likely to run into more objections from prospects will let you organize your sales tactics. Learn about the art of optimizing your sales strategy with our Sales and Relationship Management course.
Your conversion rate tells you what percentage of your prospects are turning into customers. If you’re selling via online marketing, it can also refer to the percentage of website visitors that become leads or customers from one of your campaigns.
Monitoring your conversion rate is important because it shows you how well your sales strategy or marketing campaign is performing. It also gives you a baseline for optimizing your conversion rate using landing pages and new sales scripts.
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Your profit margin is the amount of money your company earns after expenses such as research, advertising, and production are subtracted from the price of your latest product or service.
Profit margin is not the same as return on investment, which is the return you get on your marketing or sales spend. It’s actually a far more important metric in the larger picture, since a campaign can be ROI positive without actually producing a profit.
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You can’t sell products you don’t have. Monitoring your inventory levels allows you to scale up your sales efforts when your product is in stock and scale them back if it becomes in short supply.
Without closely monitoring your inventory levels, it’s possible to sell too much of a product and end up with unfulfilled orders and upset customers. This is especially common with products that are poorly priced yet very effectively marketed.
Tracking your inventory levels requires careful cooperation between the sales team and your supply and manufacturing team. Learn more about the value of having an optimized supply chain in our blog post on supply chain management.
Weekly and Monthly Sales
Monitoring your daily sales will help you learn which days of the week offer the best return on investment for your sales team’s time. Tracking your weekly and monthly sales, on the other hand, lets you know how close you are to achieving targets.
If you set weekly and monthly targets, you’ll need to keep track of your progress in order to keep your team focused on achieving its goals. Track either your net sales, or sales as a fraction of your goal to learn how close you are to short-term success.
New Customer Sales
How many of your sales are coming from new customers, and how many are coming from existing customers? Many sales teams prioritize new business, since customers that are new to a business bring additional value in the form of future orders.
Does your company want to increase the size of its customer base? Do you hope to diversify your business and expand into new markets? All of these goals demand a close eye on new customers sales to make sure your long-term goals are met.
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How much has your business grown this month? Sales is one of the most important focuses of a growing business, especially a B2B company focused on acquiring new accounts rather than expanding its non-paying user base.
Instead of just monitoring your sales team’s results in isolation, track monthly sales and revenue growth to see the effect your sales team is having on the company. You will feel far more motivated when you see how much you’re growing total revenue.
Return on Investment
At the end of the day, sales and marketing needs to be profitable in order to help a business grow. It’s easy to get overly focused on short-term sales and forget that it might not always be helping your business grow and maximize profitability.
Monitor your return on investment – the amount of profit that you’re generating from sales in comparison to your expenses – to keep track of how effectively your sales department is growing the business.
Do you want to become a master salesperson?
Whether you’re managing a sales team or working as part of one, keeping track of metrics is one of the most important parts of achieving sales success. Learn how to get started in sales with our blog post on developing an effective sales funnel.