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KPI - What Key Performance Indicator is the most important? Why?

In a sales world, KPIs, Analytics, and consistency are all measured in identifying what most large companies call "Sales Representative 2.0". Maybe not that nomenclature exactly, but I'm assuming most know of something similar.


Personally, in the last 10 years, I believe Sales people have to evolve like iPhones. That would mean we are on "sales rep 10.0". That's another post for another day.


Leadership or individual contributors - what KPI is the most important to you, and why?


(If we get enough responses, I'll start a poll) I think this information is relevant to a 2021 sales development strategy

๐ŸŽˆ Mentorship
๐Ÿ‘‘ Sales Strategy
๐Ÿงข Sales Management
5
Moneymachine
Politicker
+2
Account Executive
IC - revenue
most important because it affects my salary
Salespreuner
Big Shot
+11
Regional Sales Director
Absolutely!!
Archivist
Good Citizen
Sales Manager
Depends on role.

For IC roles I care about revenue

For SDR/BD I care about outbound dials and email open rate

In management I care most about deal mix and close rate.ย 

This is kind of a loaded question though because it really comes down to what is most important for the org at a certain time.ย 

Is the company looking to grow revenue? Develop a new market? Increase long term retention? If so other metrics may be more important.
The_Honey_Badger
Acclaimed Answer
+4
Account Executive
A question with a question guy - I like that.ย  Let's say it's to identify success for new employees.ย  We all know there is a certain grace period for learning, but how would you identify your stand-outs.ย ย 

Let's say - for a new account manager, in a brand-new territory.ย  Whitespace (no company assets).ย  They have SDRs, but the bookings are limited.ย  What's going to differentiate success in a new rep?
softwarebro
Politicker
+4
Director of Sales
Attitude
Salespreuner
Big Shot
+11
Regional Sales Director
+1 for this๐Ÿ˜Ž
LordBusiness
Politicker
+7
Chief Revenue Officer
The three metrics that I measure and track daily for my team are: opportunities created, opportunities converted to โ€œfirmโ€ and bookings. When when of these is โ€œoffโ€ the team is โ€œoffโ€ย 
The_Honey_Badger
Acclaimed Answer
+4
Account Executive
What are the magic numbers? I see you are a CRO, so obviously we know the MOST important final metric for you.ย ย 

How do you associate those metrics with increasing revenue?ย  How many opps created would you need to see to forecast a strong quarter?ย ย 

Don't mean to be too nosey, but if you're here to ask, I'm intrigued to understand.
LordBusiness
Politicker
+7
Chief Revenue Officer
The numbers vary a bit because there is a fair amount of seasonality in my business.ย  Each month I lay out the weekly goals for these big 3 metrics for the team as a whole, and watch them very carefully.ย  Right now, I use this metrics really as a baseline to know if something is drastically going well, or poorly - and from there I expand into deeper metrics at the team, rep and client level with my leaders.ย  To answer your question though, from a very high level I at minimum expect to have 1x "firm pipeline and 2.5x total pipeline on my monthly targets going into each month.ย 
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NorthernSalesGuru
Politicker
+5
Account Executive
ACV - Annual Contract Value (SaaS
The_Honey_Badger
Acclaimed Answer
+4
Account Executive
Letters that make mediocre salespeople cringe.ย  A great way to see who on your team is a 1-trick pony vs. a builder of value.ย  Anyone that can add additional products surrounding the full scope of a project is my superstar all day long!
Savagedoge
Politicker
+7
Account Executive
If it's an early stage company (upto series A) everyone's looking at revenue and as an IC, revenue is what makes me money. The other thing that will be important is retention (SaaS).ย 
The_Honey_Badger
Acclaimed Answer
+4
Account Executive
Very relevant for my industry.ย  Great response.
vidalSaaSoon
Good Citizen
Account Executive
Number of opportunities created and close rate.ย 
The_Honey_Badger
Acclaimed Answer
+4
Account Executive
I can see that - eliminates the fakers and highlights the money-makers.
saygrace
Valued Contributor
+5
Sales Executive
For me closing ratio
CuriousFox
Arsonist
+10
Senior Account Executive
I would say it depends on the role.

I think meetings (web) and opportunities created each week are important.ย 
The_Honey_Badger
Acclaimed Answer
+4
Account Executive
Fair - in a virtual world, how many bookings a week do you think it would require a sales rep to hit their quarterly quota?
CuriousFox
Arsonist
+10
Senior Account Executive
Enterprise deals I'd say 2 per week for a WebEx minimum.ย 
SalesPharaoh
Politicker
+8
AM BDR
Revenue then comes margin generated. Because i noticed some sellers just sell with no margin.
Salespreuner
Big Shot
+11
Regional Sales Director
Individual contributors who have the opportunity to think like leaders
Setting a KPI for self growth analysis works best!
Salespreuner
Big Shot
+11
Regional Sales Director
Conversion ratio and Time spent vs $ generated on working days
4
Activity does not equal Achievement
Discussion
8
5
Executive Summaries: What key things should and shouldn't be in there?
Discussion
7
2
How important is it to define ICP
Question
4
How important is it to define ICP?
+22
verbalzzzzzz , ย  BCD , ย  Tres_Comas ย  and 22 people voted
*Voting in this poll no longer yields commission.