"Not everything that matters can be measured, and not everything that can be measured matters."
As the Sales Leader in your organization, it's your job to make sure that your team is hitting their numbers. But what numbers should you be looking at? While there are a lot of different KPIs (Key Performance Indicators) that you could track, not all of them are created equal. In this blog post, we'll take a look at the three KPIs that every sales manager should be monitoring.
1. Win Rate
Your win rate is the percentage of sales opportunities that you close. This is probably the most important KPI for any sales team because it directly correlates to revenue. If you're not closing enough deals, you're not going to hit your numbers.
There are a lot of different factors that can impact your win rate, from the quality of your leads to the effectiveness of your sales process. As the VP of Sales, it's your job to make sure that you're doing everything you can to increase your team's win rate.
2. Average Deal Size
While your win rate is important, it's not the only metric that you should be looking at. You also need to monitor your average deal size. After all, even if you're closing a high percentage of deals, if those deals are small, you're not going to hit your revenue targets.
There are a number of different ways to increase your average deal size, from selling higher-priced products or services to upselling and cross-selling existing customers. It's important to experiment with different strategies and find what works best for your team.
3. Pipeline Coverage
Pipeline coverage is a measure of how much revenue your pipeline can generate relative to your goal. In other words, it's a way of making sure that you have enough deals in your pipeline to hit your number.
Your pipeline coverage should be constantly monitored and adjusted as needed. If you don't have enough deals in your pipeline, you need to generate more leads; if you have too many deals in your pipeline, you need to focus on moving them through the funnel faster.
Each of the three KPIs mentioned above are important in their own way. Win rate tells you how successful your team is at closing deals, average deal size tells you how much money your team is making per deal, and pipeline coverage tells you how many potential deals your team has in their pipeline. By tracking these three metrics, you can get a better understanding of how your team is performing and make changes as needed to improve results. Stay tuned as we continue to explore important KPI's for B2B sales and marketers!