The Must-Measure KPIs in Your Sales Report
Being an entrepreneur, a small business owner or head of sales, you should identify the opportunities that would accelerate your sales and provide the required impetus to develop your business.
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In sales, there are different stages and multiple factors play a key role in the success of your efforts. Though, in general, it is hard to identify the major contributors to sales wins and success, an effective sales report will help you out to solve the mystery.
Sales reports which capture the cause-effect and effort-result relationships, are maps that guide you in your sales journey. In this small business guide, we will walk you through the importance of sales reports for a small business and outline some of the common sales report templates which you can review and start using for your business.
What is a sales report?
Sales reports can be prepared daily, weekly, monthly or quarterly depending upon your business needs. There are also annual sales reports. Sales reports measure the efforts, outcome and possible correlation between the two.
Importance in Business
For any business, a sales report plays an important role because it provides a clear picture of sales activities and your sales teams’ performance so that you can use it to expedite the growth of your business. It helps in mapping out effective growth strategies.
Having a sales report can help you to identify a problem and tackle it before it gets overblown. Also, you can tell where the business is excelling and which area you need to focus more.
For example, sales for a given product or service group can be more than other product or service groups. You can devote more resources to products selling well and products that show more opportunities. Similarly, a specific region or a customer group can promise exponential growth potential compared to others. You can realign your sales strategies to suit such changes in market behaviour.
Sales report allows you to focus on the target audience. It gives you an insight on how well you performed during the last quarter, how are we faring in the current quarter and what should be done to achieve more sales or meet targets in the next quarter.
Types of Sales Reports & KPIs
Let us deep dive into some of the sales reports and associated Key Performance Indicators (KPIs) designed to keep your business resilient and secure.
A daily sales report is a tool used by businesses to extract the daily sales data such as lead follow ups, client conversations, opportunities created, sales generated and many other business-specific as well as sales-related KPIs.
Top 5 Daily Sales KPIs
Number of meetings scheduled
Getting new leads generated every day is good but if your team members don’t schedule meetings, the efforts are left unused. Tracking this analyzes if investments are going in the right direction.
Number of client conversations
Spending more time talking to customers helps understand their needs. Learnings from phone calls and in-person meetings help fine-tune strategy and determine successful engagement models.
Lead response time
Responding to prospects quickly is a secret formula that increases deal closure chances. Whether a lead downloaded an eBook or requested a demo, immediate reach-out is critical.
Number of sales opportunities
Track the number of qualified leads entered into your sales cycle. Comparing this against purchase volume shows potential purchase value for new opportunities.
Number of new leads
This metric determines how many qualified leads are acquired by each salesperson every day, enabling you to see if goals are being reached and if mid-course correction is needed.
This metric determines how many qualified leads are acquired by each salesperson every day. Knowing this metric will enable you to determine if goals are being reached and whether you need to pitch in to make mid-course correction.
Top 5 Weekly Sales KPIs
Lead-to-opportunity ratio
Determines the number of qualified vs unqualified leads. Predicts how many leads are needed to reach targets and identifies which lead-gen channels provide more value.
Number of deals won
Knowing deals won helps identify what works best for your top salespeople, providing insights to refine the sales process and train new team members.
Average purchase value
Measures the average value of each customer purchase. Increase this value by upselling clients or selling products with higher margins.
Sales opportunity score:
The average purchase value measures the average value of each purchase made by your customers. This KPI depends on the type of products and services you sell. You can increase the value of each sales transaction either by upselling clients or selling products or services that have more value.
Customer lifetime value:
sales CRM
Customer lifetime value is one of the most important metrics to measure in any small business. It measures the profit your business makes from any given customer over lifetime. It helps in understanding your customers and helps you to make important business decisions about sales, marketing, product development and customer support.
A monthly sales report is used to determine sales trends on a monthly basis. It is used to measure KPIs such as sales cycle length, sales conversions and sales performance KPIs.
Top 3 monthly Sales KPIs
Sales cycle length
This metric measures the total amount of time spent for closing a deal, i.e. from your first touch with a prospect till the date of closure. It helps in determining the performance of each sales team member and how effective is your sales process.
If your sales team member is struggling to achieve the target average sales cycle length, you can look at the flaws in the approach, identify areas of improvement for the sales team and take appropriate measures.
Sales conversion report:
This metric allows you to see how effectively each sales team member is at converting the leads into customers. It also shows how effective is your overall sales strategy.
By monitoring the conversion rates, you can identify the pitfalls in your sales cycle and rectify it. Suppose if your team is having trouble in converting leads into customers, you can identify the areas of improvement and implement suitable alternatives.
Empower Your Business with Data
Whether you are a small business or a large corporation, having a sales reporting process is essential to keep your business running and staying competitive.
Start Tracking Your KPIs Today