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Sales Metrics You Need To Know

Business performance depends on monitoring and measuring productivity, and for sales teams, every activity has to be measured and tracked to achieve the desired results. Sales Metrics help you with exactly that.

In the field of business, metrics are used to ensure that outcomes align with the business objectives. However metrics also measure performance, they also help in planning and decision making, tracking, analyzing, and course correction.

Sales metrics give you an update for the sales process and whether it’s making the difference or not.  If you want to measure your performance them you must track it. And of course, to do the tracking you need these essential tracking metrics to measure performance and productivity as well as helping you to make informed decisions that will help you to grow your business.

Sales metrics are more important in sales as compared to other kinds of businesses since sales representatives deal with a lot of information, it becomes hard for them to take decisions without guides or call them performance indicators.

According to AJA FROST a content creator and a writer at Hubspot, sales metrics are data points that represent an individual’s team’s or company’s performance. They help track progress towards goals, prepare for future growth, adjust sales compensation, award incentives, and bonuses, and identify any strategic issues.

Sales metrics are of various types and are broadly categorized under the different stages of the sales process they measure. Some of these metrics include; sales performance metrics, sales productivity metrics, sales activities metrics, and sales funnel metrics.

Let us break down these four categories as we look at the sub-categories that could be under each one of them.



AJA FROST a writer at Hubspot, says, Sales performance metrics are a measure of a business or employees’ tasks and activities. They are often quantifiable and can be measured over days, weeks, months, or years. These metrics are tracked and ranges are selected to identify ideal performance.  A business uses performance metrics to determine if their outcomes align with the goals that were set. If a performance metric falls below the range that was set, this indicates underperformance. And if an outcome falls within the range or above it, the business is meeting its goals or exceeding them.

Performance sales metrics are vital since they support businesses in performance evaluation and making informed decisions based on the analysis made. For instance, if you have a technology-based business and monthly recurring revenue keeps reducing you might want to find out why this is happening, auditing can be done to find out what the problem is and how it can eventually be addressed. Performance sales metrics are many however we are going to discuss a few of them and these include; conversion or win rate, revenue, percentage of sales hitting quota, average deal size, sales funnel leakage, and many others.

Percentage of sales team hitting quota

This is usually a 3 months target set and to be met by all sales representatives, in this you expect representatives to have hit the goal, under-performed or over-performed. This helps you to know whether your quotas are high or low. If you find out that your quotas are low then you just have to understand that your sales representatives are performing badly and you would need to hire others and if they are performing well as you expected or more than then you need to reward them accordingly and maybe you can even increase you