Your Guide to Sales Analytics + The Best Sales Analytics Tools for 2024

Revenue is perhaps the most obvious metric to track. You can track the total amount of revenue for a specified period of time – such as a month or a quarter 

Of course, it’s important to track how much revenue your organization is generating. It’s also important to measure how much your revenue increases or decreases over a given period of time. For example, you may measure growth year-over-year or quarter-over-quarter.

You likely track sales overall. If you have multiple offerings, it’s also important to track sales by product or service. 

That way, you’ll understand how specific products are performing. Then, you can make decisions to optimize your product mix. 

Your conversion rate is the portion of prospects that end up making a purchase. A low conversion rate may indicate a problem (or problems), but it’s important to dig deeper.

For example, it’s easy to assume a low conversion rate is due to the ineffectiveness of sellers. But it could also be due to the fact that sellers are often interacting with leads that aren’t a good fit for what they’re selling.

This is a measure of how long it takes for buyers to move through the sales cycle – from initial contact to close. It’s a good idea to measure the average sales cycle duration across the entire team. However, it’s important to remember that this incorporates data from your very best sellers – as well as your very worst. As such, it’s also a good idea to calculate the average sales cycle duration for your top sellers.

This is a measure of how much it costs to acquire a new customer. It’s calculated by taking the total cost of sales and marketing for a specified period (for example, a quarter or a month), and then dividing it by the number of new customers that converted during that same time period.

If CAC is high, look for opportunities to optimize your sales and marketing efforts.

Average deal size is a measure of the value of sales. You can calculate your average deal size by dividing total revenue by total number of deals for a given period.

This metric provides valuable insight you can leverage to improve sales performance. For example, if you notice deal size decreasing, it’s time to dig deeper. Perhaps you have an influx of newer sales reps – and they struggle to convert larger deals. By addressing this challenge, you can start to increase average deal size – and overall sales.

Customer churn rate is the percentage of customers who stop doing business with you during a specified time period. For example, let’s say you have a 10% customer churn rate for 2023. 10% of your customers have stopped doing business with you – while 90% have stuck around.

High customer churn is problematic. It’s important to examine the reasons customers churn – and then work to address them.

In addition to measuring the aforementioned KPIS across the entire organization, many should also be measured by team. For example, a sales organization based in the United States may measure sales performance based on territory. A global sales organization may measure sales performance based on country.

Measuring performance by team can provide a lot of valuable insights. For example, you can see which areas your products and services are resonating most. You may also uncover a need to deliver additional training and coaching to sales reps in specific regions.

It’s important to track company and team sales. However, it’s also important to drill down even further to measure sales performance for each of your individual sales reps.

Rep performance can be measured for a specific time period, such as monthly or quarterly. For example, you might measure both the number of closed deals – as well as the total value of those deals – for each agent in January 2024.

Individual rep performance data can shed light on the need for additional training and coaching for a specific rep. It can also provide insights on who may be eligible for a promotion or other reward.

Sales training and sales enablement help ensure sales reps always have the skills and information they need to be successful. It’s important to track completion metrics for sales training and enablement efforts. 

However, it’s even more important to track the impact of your sales training and enablement efforts. For example, is a seller actually using the skills they learned in training when they’re out in the field? Conversation intelligence tools can help you determine if that’s the case. 

Or, did a particular training module have a positive impact on deal outcomes?

With these insights, you can optimize your efforts. Then, your optimized sales training and enablement initiatives will more effectively prepare your sellers for success in the field.