{"id":28642,"date":"2022-10-04T13:19:10","date_gmt":"2022-10-04T13:19:10","guid":{"rendered":"https:\/\/www.engagebay.com\/blog\/?p=28642"},"modified":"2026-03-18T07:00:31","modified_gmt":"2026-03-18T07:00:31","slug":"sales-performance-metrics","status":"publish","type":"post","link":"https:\/\/www.engagebay.com\/blog\/sales-performance-metrics\/","title":{"rendered":"The ONLY 8 Sales Performance Metrics That Matter"},"content":{"rendered":"<p>Without sales performance metrics, you\u2019re really just guessing at whether your sales team is excelling or coming up short.<\/p>\n<p>In any area of business, guessing simply isn\u2019t good enough. You need a means of gauging sales performance, and metrics are the only way to do it consistently over time.<\/p>\n<p><strong>In this blog post<\/strong>, we\u2019ll share the only eight (8) sales performance metrics you&#8217;ll ever need to track!<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_74 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.engagebay.com\/blog\/sales-performance-metrics\/#What_Are_Sales_Performance_Metrics\" >What Are Sales Performance Metrics?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.engagebay.com\/blog\/sales-performance-metrics\/#Tracking_Sales_Performance_Metrics_8_Metrics_that_Matter_Most\" >Tracking Sales Performance Metrics: 8 Metrics that Matter Most<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.engagebay.com\/blog\/sales-performance-metrics\/#1_Follow-Up_Time_and_Cost\" >1. Follow-Up Time and Cost<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.engagebay.com\/blog\/sales-performance-metrics\/#2_Lead_Response_Time\" >2. Lead Response Time<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.engagebay.com\/blog\/sales-performance-metrics\/#3_Customer_Retention\" >3. Customer Retention<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.engagebay.com\/blog\/sales-performance-metrics\/#4_Deals_Lost\" >4. Deals Lost<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.engagebay.com\/blog\/sales-performance-metrics\/#5_Conversion_Rate_by_Sales_Funnel_Stage\" >5. Conversion Rate by Sales Funnel Stage<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.engagebay.com\/blog\/sales-performance-metrics\/#6_Win_Rate\" >6. Win Rate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.engagebay.com\/blog\/sales-performance-metrics\/#7_Customer_Lifetime_Value\" >7. Customer Lifetime Value<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.engagebay.com\/blog\/sales-performance-metrics\/#8_Customer_Acquisition_Cost\" >8. Customer Acquisition Cost<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.engagebay.com\/blog\/sales-performance-metrics\/#Why_Sales_Performance_Metrics_Matter\" >Why Sales Performance Metrics Matter<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.engagebay.com\/blog\/sales-performance-metrics\/#They_Tell_You_If_Youre_Achieving_Sales_Goals\" >They Tell You If You\u2019re Achieving Sales Goals<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.engagebay.com\/blog\/sales-performance-metrics\/#Help_You_Plan_Future_Goals\" >Help You Plan Future Goals<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.engagebay.com\/blog\/sales-performance-metrics\/#Make_It_Easier_to_Identify_Superstar_Sales_Reps\" >Make It Easier to Identify Superstar Sales Reps<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.engagebay.com\/blog\/sales-performance-metrics\/#Wrap_Up\" >Wrap Up<\/a><\/li><\/ul><\/nav><\/div>\n\n\r\n            <script>\r\n                var EhAPI = EhAPI || {}; \r\n                EhAPI.after_load = function() {\r\n                    EhAPI.set_account('ktb76s1540fl2hnhbqnrtd2npb', 'our');\r\n                    EhAPI.execute('rules');\r\n                };\r\n                (function(d, s, f) {\r\n                    var sc = document.createElement(s);\r\n                    sc.type = 'text\/javascript';\r\n                    sc.async = true;\r\n                    sc.src = f;\r\n                    var m = document.getElementsByTagName(s)[0];\r\n                    m.parentNode.insertBefore(sc, m);   \r\n                })(document, 'script', '\/\/d2p078bqz5urf7.cloudfront.net\/jsapi\/ehform.js');\r\n            <\/script>\r\n            <script>\r\n                function waitForEhForms() {\r\n                    const interval = 100; \/\/ Check every 100ms\r\n                    const checkAndLoad = () => {\r\n                        const params = new URLSearchParams(window.location.search);\r\n                        const elementorPreviewParam = params.get('elementor-preview');\r\n                        if (elementorPreviewParam && typeof EhForms !== 'undefined' && typeof EhForms.loadForms === 'function') {\r\n                            EhForms.loadForms();\r\n                            console.log('EhForms.loadForms() called successfully.');\r\n                        } else {\r\n                            setTimeout(checkAndLoad, interval);\r\n                        }\r\n                    };\r\n                    checkAndLoad();\r\n                }\r\n                \/\/ Call the function\r\n                waitForEhForms();\r\n            <\/script>\r\n        <div class='engage-hub-form-embed' id='eh_form_5161654467690496' data-id='5161654467690496'><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_Are_Sales_Performance_Metrics\"><\/span><span style=\"color: #339966;\"><strong>What Are Sales Performance Metrics?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Sales performance metrics are also referred to as key performance indicators or KPIs. These metrics are a collection of data that determines how well your sales team is performing.<\/p>\n<p>You can review total sales, open versus closed deals, new versus acquired customers, and so many more metrics. If you wish to track only the performance of certain reps on your sales team, that\u2019s a possibility.<\/p>\n<p>You can also study the performance of whole sectors of your sales team or even the entirety of the team if you wish.<\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/sales-kpi\/\">Read also: 16 Key Sales KPIs for Small Businesses: Boost Your Revenue<\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Tracking_Sales_Performance_Metrics_8_Metrics_that_Matter_Most\"><\/span><span style=\"color: #339966;\"><strong>Tracking Sales Performance Metrics: 8 Metrics that Matter Most<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Sales performance metrics are only as valuable as the ones you track. You can\u2019t only follow the metrics that are about the dollars but also about lead and customer behavior as well.<\/p>\n<p>Let&#8217;s look at the key sales metrics in detail now.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_Follow-Up_Time_and_Cost\"><\/span><span style=\"color: #993300;\"><strong>1. Follow-Up Time and Cost<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>How much time are your sales reps spending on following up with leads? How much money is this costing them?<\/p>\n<p>We\u2019re not saying that following up with leads is ever a fruitless endeavor, but it can be. Your reps need to know when enough is enough.<\/p>\n<p>Perhaps, if you haven\u2019t already, you want to institute a rule on following up.<\/p>\n<p>For instance, if the lead doesn\u2019t respond after three spaced-out attempts, then it\u2019s time to move on. Otherwise, your sales reps are sinking too much time, and time is money!<\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/sales-blitz\/\">Read also: Sales Blitz Definition, Example, and Strategy<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Lead_Response_Time\"><\/span><strong><span style=\"color: #993300;\">2. Lead Response Time<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Lead Response Time indicates the average amount of time a sales rep needs to follow up with a contact who has become a lead.<\/p>\n<p>The lead has become responsive to your company\u2019s efforts, but their interest won\u2019t last forever. The Lead Response Time rate thus should be low.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Customer_Retention\"><\/span><strong><span style=\"color: #993300;\">3. Customer Retention<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>It\u2019s every company\u2019s goal to never lose a customer, but sometimes, that simply isn\u2019t possible.<\/p>\n<p>Your small business must begin tracking your customer retention rate from today onward.<\/p>\n<p>If it\u2019s lower than average, it\u2019s not only the fault of your sales team. It could be that your marketing or customer service efforts need improving, for example.<\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/sales-analysis-software\/\">Read also: Top 10 Sales Analysis Software for Small Business Owners<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Deals_Lost\"><\/span><strong><span style=\"color: #993300;\">4. Deals Lost<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>This is a metric that your small business will want to keep as low as possible, as deals lost indicates that your company\u2019s <a href=\"https:\/\/www.engagebay.com\/blog\/sales-analysis-reports\/\">sales performance<\/a> is suffering.<\/p>\n<p>Perhaps your sales reps are going after the wrong type of lead, they\u2019re wasting too much time with following up, or they\u2019re blowing the deal somewhere along the way.<\/p>\n<p>You need to go back and review individual versus collective deals lost to get a better understanding of what might be going wrong so you can begin to fix it.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Conversion_Rate_by_Sales_Funnel_Stage\"><\/span><span style=\"color: #993300;\"><strong>5. Conversion Rate by Sales Funnel Stage<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Conversion rates are excellent for your small business, as that means you\u2019re producing more customers out of your leads.<\/p>\n<p>At which <a href=\"https:\/\/www.engagebay.com\/blog\/sales-pipeline-stages\/\">sales funnel stage<\/a> are these conversions happening the most often? Is it earlier on (which would be impressive) or later in the sales funnel?<\/p>\n<p>If you notice consistent trends in how customers track through your sales funnel, you can share this information with your sales reps so they have a better understanding of what the average customer journey looks like.<\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/sales-champ\/\">Read also: The Sales CHAMP Framework and How It Can Help Your Business<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"6_Win_Rate\"><\/span><strong><span style=\"color: #993300;\">6. Win Rate<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The win rate is an important sales performance metric, but as you\u2019ve seen, not the most important.<\/p>\n<p>Once again, we recommend you look at both the individual sales rep win rates and the win rates for your overall sales team.<\/p>\n<p>You will have a few standout sellers for sure, but if everyone\u2019s win rates are about equal otherwise, then your sales team has no weak links.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"7_Customer_Lifetime_Value\"><\/span><strong><span style=\"color: #993300;\">7. Customer Lifetime Value<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/www.engagebay.com\/blog\/customer-lifecycle-marketing-strategies\/\">Customer Lifetime Value<\/a> or CLV is a measure of how much money your small business can make out of each of your customers on average.<\/p>\n<p>To calculate the CLV, you first need to know the customer\u2019s Lifetime Value.<\/p>\n<p>You\u2019d multiply their average value of sales by the number of completed transactions by the retention period to get the Lifetime Value.<\/p>\n<p>Then you take the Lifetime Value and multiply that by your small business profit margin and you have the CLV.<\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/okr-examples\/\">Read also: OKR Examples That Bring Out The Best In Different Teams<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"8_Customer_Acquisition_Cost\"><\/span><span style=\"color: #993300;\"><strong>8. Customer Acquisition Cost<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>While the goal of running a business of any size is acquiring customers, your company must be cognizant of how much it\u2019s costing you to do that.<\/p>\n<p>The Customer Acquisition Cost or CAC will tell you.<\/p>\n<p>Calculating the CAC is easy. Take your cost of sales plus the cost of marketing and divide that total by the number of new customers your small business has acquired.<\/p>\n<p>The CAC should be commensurate with what your company is spending on marketing. If it isn\u2019t, then you need to revise your marketing and advertising budgets.<\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/sales-dashboards\/\">Read also: 16 Sales Dashboards That Make Sales Fun<\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_Sales_Performance_Metrics_Matter\"><\/span><span style=\"color: #339966;\"><strong>Why Sales Performance Metrics Matter<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>If you have yet to track sales performance metrics, it\u2019s worth starting today, right this very minute.<\/p>\n<p>You can never go back and regain the lost time and the lost metrics that go along with it, but you can begin building a historic record of data from this point forward.<\/p>\n<p>When you do, you can begin reaping the following benefits.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"They_Tell_You_If_Youre_Achieving_Sales_Goals\"><\/span><span style=\"color: #993300;\"><strong>They Tell You If You\u2019re Achieving Sales Goals<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Going back to our point from the intro, it can become impossible to determine without sales performance metrics whether your sales reps are meeting quotas or not.<\/p>\n<p>You can\u2019t even look at your company revenue, as you can\u2019t confidently ascribe all the credit to the sales reps when some of those earnings might have come from your marketing department or other departments within your company.<\/p>\n<p>You need sales metrics to inform and guide you.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Help_You_Plan_Future_Goals\"><\/span><strong><span style=\"color: #993300;\">Help You Plan Future Goals<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>&nbsp;<\/p>\n<p>How can sales metrics guide you? That\u2019s simple.<\/p>\n<p>You can review your current <a href=\"https:\/\/www.engagebay.com\/blog\/sales-goals\/\">sales goals<\/a> and compare how your sales reps are performing to determine if you perhaps overshot your goals or even undershot them.<\/p>\n<p>It\u2019s easy enough to write off one month or one sales quarter as a fluke, but if longer-term data suggests that your approach isn\u2019t working or that your sales goals are too ambitious, then it\u2019s time to change tact.<\/p>\n<p>The longer you continue with something that isn\u2019t working, the more you\u2019re impeding the company\u2019s bottom line!<\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/sales-productivity-tools\/\">Read also: 10 Sales Productivity Tools That You\u2019d Want To Buy Today<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Make_It_Easier_to_Identify_Superstar_Sales_Reps\"><\/span><span style=\"color: #993300;\"><strong>Make It Easier to Identify Superstar Sales Reps<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>You\u2019ll recall from the last section that you can use sales performance tools and software to separate metrics by entire sales teams or even individual sales reps.<\/p>\n<p>It\u2019s good to review the performance of each rep of the team to see who\u2019s the brightest seller on the squad and who could use some help.<\/p>\n<p>Once you identify your superstar sales reps, so to speak, you can use them as an example of what the other sales reps should be attaining to.<\/p>\n<p>You can also pick the brain of this sales rep and possibly use their guidance and assistance to improve the performance of your other sales reps.<\/p>\n<p>For instance, perhaps there\u2019s a script your superstar sales rep uses or a certain strategy they like to employ that the others on the team aren\u2019t doing enough.<\/p>\n<p>On the opposite side of the spectrum, when you realize that sales team members are underperforming, it\u2019s a good idea to monitor them to look for any trends.<\/p>\n<p>If the trend of underperformance continues, you might wish to pull this sales rep aside and possibly enroll them in additional training to make them more effective at their jobs.<\/p>\n<p><a class=\"fasc-button fasc-size-medium fasc-type-flat fasc-rounded-medium ico-fa fasc-ico-before fa-arrow-circle-right\" style=\"background-color: #33809e; color: #ffffff;\" target=\"_blank\" rel=\"noopener\" href=\"https:\/\/www.engagebay.com\/blog\/sales-tools\/\">Read also: 11 Sales Tools To Supercharge Your Sales Stack<\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Wrap_Up\"><\/span><span style=\"color: #339966;\"><strong>Wrap Up<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Sales performance metrics are a necessary part of understanding how your sales team performs, including the good, the bad, and the ugly.<\/p>\n<p>Now that you know which metrics to begin measuring, you can reassess and redefine your company\u2019s definition of success!<\/p>\n<p>If you want to try one of the most affordable all-in-one sales automation software, try <a href=\"https:\/\/www.engagebay.com\/\">EngageBay<\/a>.<\/p>\n\r\n            <script>\r\n                var EhAPI = EhAPI || {}; \r\n                EhAPI.after_load = function() {\r\n                    EhAPI.set_account('ktb76s1540fl2hnhbqnrtd2npb', 'our');\r\n                    EhAPI.execute('rules');\r\n                };\r\n                (function(d, s, f) {\r\n                    var sc = document.createElement(s);\r\n                    sc.type = 'text\/javascript';\r\n                    sc.async = true;\r\n                    sc.src = f;\r\n                    var m = document.getElementsByTagName(s)[0];\r\n                    m.parentNode.insertBefore(sc, m); 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