Most Important Sales Performance Metrics To Track

Most Important Sales Performance Metrics To Track

When we discuss sales metrics commonly used to track sales reps productivity, the first thing you need to know is they vary from company to company since productivity also changes depending on the company’s needs. 

Increased revenue comes down to robust, repeatable sales processes that deliver results, and once you have that, you can grow your business with more sales reps who can be properly trained and motivated.

Understanding sales performance metrics is critical for improving your sales results and ensuring that the knowledge gained from such information contributes to proactive decisions that will grow your business. 

What is Sales Performance Metrics? 

Sales performance metrics is the data that reflects sales performance and the overall performance of the company.

Sales productivity metrics are used to measure progress made by a sales team in reaching goals, addressing changes in the market, growing the business, and receiving awards or bonuses. 

Sales Performance Model

Sales performance must be measured against some indicators or points, correct?

Here we provide you with some important sales metrics to track that can help you measure the productivity of your sales team. 

Total Revenue 

Total revenue is undoubtedly the most important metric to measure sales performance. You can calculate the revenue on any time scale, such as monthly, quarterly, or annually. 

Annual recurring revenue is the most popular metric for large companies, while monthly recurring revenue can be compared to that with a shorter time frame. ARR is a great metric for companies with high retention or long-term contracts. 

Average Revenue Per Customer 

An average revenue per customer (ARPC) is a measure of the revenue generated per customer. Using ARPC, a company’s management or investors can gain a deeper understanding of revenues, growth, and margins per customer.

Market Penetration 

Market penetration is a key sales performance metric to be considered when identifying key sales metrics. To get a better understanding of how a business is performing compared to its forecasted sales, knowing its share in the market is crucial. 

Since the market is dynamic, you must keep your eyes open for changes that can lead to your business’ expansion. 

Percentage of Revenue from New and Old Customers 

It is important to know how the revenue of new customers compares to the revenue of old customers for many reasons. A rise in revenue from new customers naturally indicates that current sales strategies are working well in terms of upselling and increasing revenue for the company. 

Win Rate 

A win rate is a ratio of closed deals to total leads. A sales team’s win rate can be influenced by several factors. Simply stated, the win rate indicates a team’s ability to close the deal. 

Year Over Year Growth 

Although growth may be evaluated on a month-to-month basis, quarterly basis or year-to-year basis, the most important sales performance measure is calculating the annual growth rate, which helps to determine whether the long-term growth goals have been met and also shows the effectiveness of strategy execution.

Lifetime Value of a Customer 

Among the key sales performance metrics tracked by businesses is the customer lifetime value (CLV). This is a measure of the worth of a customer to a company over an unlimited period, instead of just the first purchase. A reasonable acquisition cost can be determined by this metric.

Sales Expense Ratio 

It is essential to know how the sales expense ratio relates to revenue, as this is an important metric in measuring sales performance. The company does not make profits when its sales expense ratio is high. Startups are usually faced with high sales expense ratios.


If we are talking about how to know how your business is doing in terms of sales, then the above-mentioned metrics must be considered. These metrics are proven and important for measuring and scaling business growth.

Implementing the right sales management tool is the key to gaining crucial sales productivity metrics, and don’t worry, doing so will not harm your sales expense ratio. If it’s NeoBiz, then definitely no.

NeoBiz is a free sales management app that helps you maintain and manage all your customer data in one place, get accurate sales performance metrics, manage day-to-day sales tasks, and much more.

Try the NeoBiz app today, download now!  

Sales Made Easy

Easier sales management now just one download away.

Download the NeoBiz app now!

Leave a Reply

Your email address will not be published. Required fields are marked *