Every business should focus on building a data-driven sales growth strategy. That means, before you build a new set of sales strategies, make sure that your existing sales strategies are driving you some results.
Now the question is, how can you measure your sales performance?
Well, the best way to do that is by tracking some of the key sales growth metrics.
These metrics will help you gain actionable insights into your sales performance. And accordingly, you can build a personalized sales strategy for your brand.
This article will help you identify the sales metrics you must track along with some of the best sales growth strategies.
So, let’s begin!
5 Sales Performance Indicators Every Business Should Know About
Here is a list of five sales growth metrics that will help you identify your organization’s financial health so that you can adjust your sales growth strategies accordingly.
1. Sales Growth Rate
The purpose of measuring this KPI is to find out how much an organization’s overall sales have increased in a particular period. Sales growth is closely related to an organization’s financial growth. So, measuring these sales metrics is imperative. The sales growth rate formula is as follows:
Sales growth rate = [ Current period’s sales - Previous period’s sales ] / Sales Growth Rate
A positive sales growth rate value is always desirable for organizations. It would mean that your sales are growing and so is your organization. On the other hand, a negative sales growth rate indicates that your business needs quick strategy changes to increase the sales growth rate.
2. Customer Acquisition Cost (CAC)
CAC is another major sales growth KPI that you should track. It includes all the costs a business might need to incur when acquiring a new customer.
These could mean any type of cost starting from rep’s salaries, incentives, marketing expenses, sales software subscription charges, and so on. A business that can acquire more customers while cutting down its CAC value is ideally going in the right direction.
3. Customer Lifetime Value (CLV)
Another sales performance indicator that you must be aware of is CLV. It indicates the overall revenue an organization should expect from a single customer throughout their association with the business.
If you can regularly track this KPI and put effort into improving it, it will help you create loyal customers and open doors to boost overall revenue.
4. Customer Churn Rate
For SaaS businesses, measuring customer churn rate is mandatory. This sales growth metric indicates the number of customers who have stopped using your products or services in a particular period.
This KPI can provide you with practical insights on how effective your retention and sales growth strategies are. Therefore, you can easily understand what strategic changes you need to perform.
5. Lead Conversion Ratio
Your sales pipeline can be filled with lots of leads, but you need to track how many of those are actually getting converted. Generating leads is pointless unless you can convert them. By measuring this, you’ll get an idea of how good your current lead conversion strategies are. It also determines how interested the prospects are in being your paid customers.
3 Ways To Improve Your Sales Growth
Once you track down the above sales growth KPIs and find your improvement areas, it’s time to use these datasets to improve your sales growth. Here are a few tactics to grow your sales:
- Use a sales enablement tool
- Work on your product expertise
- Measure your sales performance regularly
1. Use a sales enablement tool
The first step to building a data-driven sales growth strategy is using a sales enablement tool like SalesKen. Such a tool can help you drive comprehensive insights into your sales activities and help your reps identify the improvement areas.
SalesKen’s sales enablement software can help you with the following:
- Give your reps useful insights into their sales approach. As a result, it can motivate them and increase their productivity.
- The sales enablement tool can identify critical loopholes from your sales pitch that you may overlook. Plus, it helps you fix those loopholes to redefine your sales pitch.
- It can help you achieve real-time sales insights to get practical results.
- This tool can help you build personalized sales strategies driven by in-depth analytics and customized feedback for improvement.
2. Work on your product expertise
Planning your sales growth strategies? The first question you should ask yourself is, do the reps know your products inside out? When a prospect asks why they should buy your products, can they answer it properly?
The key to sales growth is ensuring that your reps are thoroughly aware of the products they are selling. That way, they can understand the prospect’s pain points and pitch the right solutions at the right place. Brands can also arrange special product tutorials for the reps to grow their product expertise.
A deep level of product knowledge can help the reps to answer any questions from the prospects. Product expertise can help you build a unique selling proposition for your brand and help you gain long-term success.
3. Measure your sales performance regularly
Finally, the best way to achieve sales growth is by measuring sales performance regularly. Apart from tracking the major sales metrics, you can also use SalesKen’s sales performance tool to get the latest updates in your brand’s sales activities.
Here’s how this tool can help you:
- It offers complete visibility into your sales performance to find key insights like prospects’ buying intent, number of objections, needs, etc.
- SalesKen’s sales performance tool comes with customer intent scoring. It helps your reps to identify and chase only valuable leads with high purchase intent.
- This sales growth tool also comes with a targeted sales coaching feature to help the sales with their sales pitches and highlight the areas of improvement.
We hope you have a significant understanding of sales growth and different sales performance metrics. Apply our recommended sales growth strategies, and you’re bound to observe major changes.
Want to explore more about Salesken’s sales growth features? Book your free demo now.