If your business was a bus, then your sales department is the driver. You need your sales department to move your business forward.

But, to move your sales department forward, you need to improve sales. And improving sales is not possible without measuring it.

So, how exactly do we measure sales? That’s where KPIs or key performance indicators come into play. They are measurable values that show a company’s growth and progress in attaining its objectives and goals.

For your sales department, sales KPIs are necessary to make any sort of improvement or progress. But, are you confused about what exactly sales KPIs are and how they are actually useful for your business?

Don’t worry! We have got it all covered in this blog – from definition to importance and also a list of sales KPIs for your business! So, what are you waiting for? Dive right in!


What Exactly Are Sales KPIs? (Definition)

Most organizations work with key performance indicators or KPIs that help them measure and monitor how well they are doing with their business and achieving their goals

Sales KPI basically means looking at this from a sales perspective. Therefore, a sales KPI is a metric used by sales managers and sales reps to measure the performance of various sales processes and activities.

It gives you a deep glimpse into every activity involved in the process of selling and lets you track and monitor the company’s growth and performance in achieving its sales goals.


Why Are Sales KPIs Important?

Not tracking your sales KPIs is like walking in circles. You may think you are walking forward and making progress, but in reality, you are just walking the same path over and over again.

Measuring your sales KPIs will give you valuable insights into all aspects of your selling process. Through it, you will be able to pinpoint areas that need fixing and start working on improving them. They help you foresee any problems that might arise in the future and prepare you to face them before it’s too late.

Your sales KPI will give you a clear overview of your business which will help you predict your future sales and guide your team members and organization in the right direction. These metrics help your sales team work smarter by optimizing your sales process and prioritizing the right activities for optimal results.

In short, the right set of KPIs will provide you with unique insights into your team’s performance, anticipate issues, maximize profit, optimize your sales process, and improve daily sales tactics.

That’s why it is imperative that your sales departments track and measure sales KPIs so that you can take a step in the right direction.

If you are wondering what the different types of sales KPIs are, then check out the list that we have created for you to explore! Hurry up and scroll down!

Read more: 12 Marketing KPIs Every Marketing Team Should Monitor!


List of Sales KPIs Your Sales Department Should Measure

1. Sales Growth

Let’s kick start the list with sales growth, the most obvious sales KPI of them all. It’s a metric that shows the increase and decrease of revenue during different periods of time. By tracking your sales growth, you can track the growth of your company. It also gives you valuable insights about your sales processes and selling strategies, and whether they are actually working or not.

You can use this sales KPI to track your results and study the areas in your sales processes to see where change is required. A positive sales growth over a specific period of time means that your business is on the right track with your sales goals.


2. Customer Lifetime Value

Customer lifetime value is a sales KPI that lets you measure how long a customer has been buying your products and services and how much money you generated from them over time. It’s basically the monetary value of your customer relationship.

Customer lifetime value gives your sales team an idea of how much of the cost and effort of acquiring a new customer will pay off and also rates your company’s customer retention level. This will in turn allow you to predict your company’s future revenue and profit.


3. Customer Acquisition Costs

When we talk about customer acquisition cost (CAC), we are referring to a sales KPI that tracks all the costs associated with signing up a new customer to your business. It is a reflection of your business model as it shows whether these costs will be higher or lower than the revenue you will get from it.

By understanding this sales KPI, you can determine which sources are worth your time and will increase your profits. CAC can be compared with your customer’s lifetime value to understand how long it will take to pay off the costs.

Read more: 11 Amazing Sales Promotion Examples You Need to Check Out!


4. Lead Conversion Rate

Lead conversion shows the rate at which your sales team was able to convert leads into real customers. This sales KPI can be used to measure the performance of your sales team and the effectiveness of their sales pitch.

Tracking your lead conversion rates helps you prepare a plan for gaining more customers in the future. It can also be used to study why your team lost certain potential customers and help them improve in those areas as well.


5. Customer Churn Rate

Customer churn rate, also known as customer turnover rate, is the number of clients who have stopped using your product or service over a certain period of time. It is an important sales KPI that helps you identify leads who are likely to stick around and point out moments you need to focus on before they leave your business.

It’s a great metric to track all your lost customers and the revenue over time, and help you understand the overall sales health of your company.


6. Sales By Contact

If you want to find out which method of contact is bringing you more customers, then this sales KPI is what you should be tracking. The ‘sales by contact’ measures which contact method is effective in generating sales for your business. It could be emails, social media, calls, etc.

By using this KPI, you can evaluate the ROI of your method, which will help you choose the contact that works best for your business and is also cost-effective. It can also help your teams to change their sales processes and target specific leads as well.


7. Sales Cycle Length

Sales cycle length is the amount of time between your customer’s first point of contact and their last point of contact with your business. Understanding your total sales cycle length helps you see where leads are stalling in the sales process and helps you figure out how to make it better for future sales.

It is a great sales KPI to measure the performance of your sales reps and tell them where they need to make changes. Knowing the length of your sales cycle will also help you make accurate revenue forecasts.


8. Product Performance

Ever wanted to know how your products are performing in the market? Product performance is a sales KPI that ranks your products by their revenue performance for you to see which ones are doing well and which ones are failing to miss the mark.

Tracking this sales KPI gives you insights into your sales strategies, market changes, and the desirability of your product. It also indicates sales trends relating to your competitors’ products and pricing and even industry-wide changes which are impacting sales.


9. Sales By Region

No one really thinks about tracking sales by region. But it’s a great sales KPI that shows how well your product performs in a certain region. By asking yourself where the majority of your sales come from, you get an understanding of which regions or areas are the most receptive to your business.

Segmenting your sales information by demographics and geography can also help you be informed about your ideal customers and where their preference lies, which will, in turn, help you craft better sales campaigns.

Read more: 10 Top Performing Business Metrics Your Business Must Know About!


10. Sales Target

Using sales target as a KPI helps you measure your current revenue against a set target or a past performance. This sales KPI gives you data that you can use to set realistic sales goals for your sales reps to accomplish.

Sales target KPI helps salespeople track their productivity and progress each month and give them an idea of how close or far they are from achieving their targets.


11. Incremental Sales

Incremental Sales measures the number of sales your team generated through their marketing efforts. It is the difference between the actual sales you created through your campaign and the sales you would have created without that campaign.

Tracking this sales KPI helps you determine which campaigns bring you the best results in terms of sales and help you develop strategies accordingly. It also keeps tabs on your affiliates’ contributions and equips you better in planning your ad spend.


12. Net Promoter Score

Net promoter score is a sales KPI which measures your customer’s loyalty towards the business. It shows how likely customers are to recommend your brand to someone else. It is calculated by deducting the percentage of unhappy customers from the percentage of happy and satisfied customers.

You can use NPS to get a clearer picture of your customers’ experience over months and analyze whether it is improving or not. It tells you what exactly you are doing right and where you can improve and also acts as a predictor of your business’ growth.



Regardless of the industry, you belong to, measuring your growth is an important step towards making improvements.

That’s why, in this blog, we have compiled for you a list of sales KPIs that you can use to track and monitor the progress of your business.

But remember, the keyword here is KEY. You must choose the KPIs that are relevant to your business and your goals, then only you can achieve them and improve your profitability.


Before you go!

Our team at bit.ai has created a few awesome sales templates to make your sales process more efficient. Make sure to check them out before you go, your sales team might need them!


Further reads: 

Top 7 HR KPIs You Should Measure in 2022!

Top 10 Key Performance Indicators You Need To Measure In 2022

Sales Territory Plan: What is it & How to Create it?

KPI Report: What it is & How to Create a Perfect One?

Sales Collateral: Definition, Types, and Tips!

Sales Report: What is it and How to Create One?

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