Measuring all of these KPIs can seem like a daunting task, but this is where specialized CRMs come into play . HubSpot , for example, offers a comprehensive solution that allows teams to collect, store, and analyze relevant data to evaluate performance and make informed decisions. The tool offers a variety of solutions to track the sales KPIs mentioned above. These include:
Sales Funnel: HubSpot provides a visual funnel that shows the stages your leads are in and the conversion rates at each stage. This allows you to quickly identify potential pain points and opportunities to improve your sales process.
Reporting and Analytics: HubSpot offers a wide range of customizable reports and dashboards that enable sales teams to track and analyze performance in real-time. Data is presented in a clear and concise manner, making it easy to make data-driven decisions.
Automation: The platform allows you to automate various sales tasks such as email follow-ups, follow-up reminders, and appointment scheduling. This automation helps save time and ensures that no lead is left unanswered.
Relationship Management: Centralizes all relevant information about current and potential customers in one place, making it easy to access and collaborate across teams. This allows for more effective customer relationship management over time.
How to measure essential KPIs?
Measuring sales key performance indicators (KPIs) requires cayman islands phone number collecting and analyzing relevant data based on each specific metric. The way to measure each one is:
Conversion Rate: you need to know the number of leads that have been converted into actual customers in a given period and divide it by the total number of prospects in that same period. The formula is: Conversion Rate = (Number of converted customers / Total number of leads) * 100
Closing Rate: This is obtained by dividing the number of successful sales by the total number of sales opportunities and then multiplying the result by 100. The formula is: Closing Rate = (Number of successful sales / Total number of sales opportunities) * 100
Average Sales Value: This is obtained by adding up the total value of all sales made in a specific period and dividing it by the total number of deals closed. The formula is: Average Sales Value = Total Value of Products or Services Sold / Number of Sales
Average sales time: To calculate this, you need to add up the sales time of each potential client in a given period and divide it by the total number of sales closed in that same period.
Cost of Customer Acquisition (CAC): This involves adding up all the costs associated with customer acquisition, such as marketing expenses, salespeople salaries, and other related expenses, and dividing it by the total number of customers acquired in the same period: CAC = (Customer Acquisition Expenses / Number of Customers Acquired)
Customer Lifetime Value (LTV): You need to determine the average revenue a customer generates over the entire time they remain in a relationship with the company. This can be obtained by multiplying the average sales value by the number of purchases a customer is expected to make during their relationship with the company and then multiplying it by the average length of the relationship: LTV = (Average sales value * Purchase frequency) * Average length of customer relationship
Churn Rate: This is calculated by dividing the number of buyers who stopped hiring or purchasing in a given period by the total number of consumers at the beginning of the same period. The result is then multiplied by 100 to obtain the percentage: Customer Churn Rate = (Number of Churned Customers / Total Number of Customers at the Beginning) * 100
Retention Rate: This is calculated by subtracting the customer churn rate from 100%. That is: Retention Rate = (Customers at the end of the period - New buyers in the period / Customers at the beginning of the period) * 100
Customer Satisfaction Score (CSAT): CSAT is obtained through customer satisfaction surveys. People are usually asked to rate their satisfaction on a scale of 1 to 5 or 1 to 10 with the product or service and the company in general. CSAT is calculated by adding up all the ratings and dividing them by the total number of responses to get a weighted average.