When it comes to sales, precise measurements might be the difference between meeting your target and falling short. Here’s where sales metrics and analytics come in handy. You’ll be left in the dark when it comes to directing your revenue team to success if you don’t have them.
We now have more sales data at our hands than ever before, thanks to strong AI-based solutions—but simply having access to sales analytics isn’t enough. It’s crucial to understand what to measure and how to interpret the data.
How to identify metrics?
The key performance indicators that you designate as critical to your business model, such as selling motions, sales processes, sales cycles, and more, are used to discover the crucial KPIs for your organisation and your team.
Important Sales Metrics
1) Average Revenue per user
The amount of money a corporation makes per subscriber, user, or account in a certain time period is referred to as average revenue per user (ARPU) or average revenue per account (ARPA). It’s determined by multiplying the total income for a certain time period by the number of subscribers, customers, or accounts within that time period
2) Sales Cycle length
The average time it takes for a new client to get from the opportunity stage to a concluded contract is referred to as the sales cycle duration. Understanding this measure may assist sales teams identify any bottlenecks in their sales process, which can cause prospects to be delayed, if not lost entirely, and improve the sales process moving forward for a higher closure rate and more accurate forecasting.
3) Win rate
The percentage of agreements that are closed-won within a given time period is referred to as the win rate.
4) Conversion rate
The conversion rate in sales refers to the number of qualifying leads that turn into won transactions.
5) Churn rate
The amount of customers that cancel or do not renew their subscriptions over a given time period is referred to as churn rate.