Developing A Sales KPI Dashboard: The Sales Metrics You Must Include

Developing A Sales KPI Dashboard: The Sales Metrics You Must Include

Learn everything you need to know to develop a sales KPI dashboard and discover the key metrics that will help measure success in your sales team.

Kayvon Kay
Kayvon Kay

April 21, 2023

The Complete Guide To Setting Up Your Sales KPI Dashboard For High-Performance

Imagine having every data point you need right at your fingertips, allowing you to make business decisions that drive growth. With a sales key performance indicators (KPI) dashboard you can do just that.

But how do you know which metrics you should be including in your centralized data center? In this blog, you'll learn the key metrics to track and how to use them to improve your sales process.

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How Do You Create a Sales Dashboard?

Sales Chart

You might be asking yourself, "What is KPI in sales?" And, as a business owner or a sales manager, how do you create your own sales dashboard? The process becomes much easier if your customer relationship management software (CRM) is already connected to a sales dashboard. 

Here are the steps you can follow to create your own sales dashboard:

  • Determine the KPIs that matter most to your business. These could include metrics such as revenue, customer acquisition cost, conversion rate, and deal pipeline.
  • Identify which data points in your CRM correspond to each KPI. For example, revenue would come from closed deals and customer acquisition cost would come from marketing expenses.
  • Choose a visualization tool for displaying the data. This could be anything from Excel spreadsheets to more sophisticated tools like Tableau or Power BI.
  • Set up automated data feeds between your CRM and visualization tool. This ensures that your sales dashboard is always up-to-date with the latest information.
  • Customize the layout of your dashboard to display the metrics that are most important to you. This will enable you to easily track progress towards your goals and identify areas for improvement.

By following these steps, you can create an effective sales KPIs dashboard that helps you make data-driven decisions and drive growth for your business. The biggest points of contention will be which metrics to include in the dashboard for sales performance and how you will gather the data.

Adding Data To a Sales Dashboard

As mentioned above, adding data to your sales dashboard becomes fairly easy when the process is automated. Most modern CRMs have some sort of dashboard that will display the data it is collecting. This allows you and your team to track and measure the progress of business goals at a glance. The dashboards are usually customizable as well, so you can cherry-pick which metrics line up with your business goals.

However, if you don't have a CRM capable of displaying a dashboard, you'll need to create one yourself. This can be as simple as a color-coded Google Spreadsheet that contains all the KPIs for sales you want to track. The process will be more time-consuming since someone on your staff will have to input the data every week or every month depending on what you're tracking.

Now that you understand how to create your own sales dashboard metrics and how the data is populated, you can start to focus on the main question: What metrics should you include in your dashboard?

Essential Sales KPI Metrics for a Dashboard

Businesses that use data give themselves a foundation on which to base future decisions. According to MicroStrategy, 57% of businesses are using data and analytics to make decisions on their strategy. Below is a list of the most common Sales KPI metrics businesses today are using for their sales dashboard.

Sales Growth

Sales Growth

One of the more obvious choices for a sales dashboard is overall sales growth. Knowing whether or not your company is growing month-over-month is crucial to future financial decisions for the business. Are you able to meet your marketing budget this month to continue bringing in more leads? Can you afford payroll this month after losing a major client?

Tracking sales growth can also help you set realistic goals for your business. By analyzing historical data and projecting future trends, you can establish achievable sales targets for revenue growth and adjust your strategy accordingly. This allows you to create a roadmap for success and measure progress toward your goals over time. 

Sales growth is not the entire story to whether or not you have a successful business. But it is an easy benchmark to compare general growth in the business.

Customer Churn Rate

It doesn't matter how many leads you can close in a month if none of them stay with your service for long. Customer churn rate is a critical KPI to track when creating a sales dashboard because it can significantly impact your business's long-term success. As business owners or sales managers, you need to know how many customers are leaving your company and why. This can help you identify areas for improvement and take action to retain more customers.

Recognizing you have a problem with customer churn helps you make immediate decisions that can correct the problem. You can change your onboarding experience to get customers more familiar with your brand, or start offering more comprehensive customer service.

Customer churn rate can also help you understand the overall health of your customer base. By analyzing data related to customer engagement, satisfaction, and loyalty, you can gain insights into what drives customer behavior and identify opportunities for improvement.

Lead Conversion Rate

Your marketing team could be bringing in hundreds of leads a day. But if your sales teams don't have a successful way to close those leads you'll never make any sales. Lead conversion rate is a crucial KPI to track when creating a sales dashboard because it provides valuable insights into the effectiveness of your sales and marketing strategies. With this information easily tracked on a sales dashboard, you can understand where the bottlenecks in your sales funnel lie and what actions are needed to make changes.

If you notice plenty of people are coming to your website but no one is buying your products, there is a problem somewhere in your funnel. You can then customize your dashboard to include metrics that track customer behavior across your website. 

Track the homepage button clicks to see if people navigate the sales page. Then, track sales page button clicks to see how many people access your pricing page. Using this methodology, you should be able to make immediate improvements in conversion rates across your business.

Customer Acquisition Cost

Customer Acquisition Cost

Customer Acquisition Cost (CAC) is defined by the total amount of resources used to convert a lead into a paying customer. By tracking CAC, you can determine how much it costs to acquire each new customer and compare this against the lifetime value of that customer. This then gives you an idea of whether or not your marketing and sales efforts are profitable. 

The reason this metric is so important is that acquiring a new customer costs between 5 times and 25 times more than retaining an existing customer.

For example, if your CAC is higher than the lifetime value of a customer, it may indicate that your marketing or sales strategies are not as effective as they could be. In this case, you may need to adjust your approach by targeting different audiences or using different channels to reach potential customers. 

Alternatively, if your CAC is lower than the lifetime value of a customer, it may suggest that you have room to invest more in marketing and sales activities that generate leads and convert them into paying customers.

Customer Lifetime Value

You learned about it briefly in the section above, but customer lifetime value (CLV) has inherent value and it also adds value when combined with other metrics. CLV is an estimate of the total amount of revenue that a customer will generate for your business over their lifetime.

Let's say a customer buys a product of yours today for $50 but they like your company so much they continue buying with you for another three years and end up spending another $500. The total CLV for that customer would be $550.

Now, let's say you took all your customers' CLV and added it up to get an average of $350 per customer. Using this information, you can now set a marketing budget for each customer and know that as long as you don't go over $350 you will still break even.

Adding CLV to your sales dashboard is essential for any business looking to maximize profitability over the long term. By tracking this KPI closely and making data-driven decisions based on these insights, you can improve customer retention rates and achieve sustainable growth over time.

Upsell and Cross-sell Prices

Upsell and cross-sell prices are pricing strategies used by businesses to increase revenue from existing customers. Upselling involves offering a higher-priced product or service to a customer who is already making a purchase. While cross-selling involves offering related or complementary products or services to the customer.

If you find that certain upsell or cross-sell offers are particularly effective at generating additional revenue, you may want to focus more resources on promoting those offers or developing similar ones in the future. Like with most other metrics on this list, combining your upsell and cross-sell metrics with CLV and CAC gives you a more holistic picture of how you can optimize your sales processes. 

The more additional revenue you're able to create with upsells and cross-sells, the more you can put towards customer acquisition and the larger your customer lifetime value metric grows.

Sales Per Rep

As you might have guessed from the name, the sales per rep metrics measure the revenue generated by each sales representative in your business. While this stat can easily point out sales reps in your company who aren't holding up their end of the bargain, it also provides insight into your sales process as a whole.

For example, if one rep is generating more revenue than all the others combined, you may want to look into what tactics that rep is using and use these insights to improve your overall sales strategy. On the other hand, if every rep has an average performance, you may need to look into other areas of your process that aren't functioning optimally. Consider revamping your training and development process or reassigning certain sales reps who aren't meeting quotas.

Adding this KPI to your sales dashboard will help you get a better understanding of the effectiveness and potential improvements that can be made to your sales strategy.

Percentage of Leads Generated

Percentage of leads generated is a metric that measures the effectiveness of a business's marketing efforts in generating new leads. It calculates the percentage of potential customers who have shown interest in the company's product or service, and provided their contact information to be contacted for further follow-up.

If you generate 100 leads from a marketing campaign that reached 1000 people, then the percentage of leads generated would be 10%. The way you can use this metric is by identifying which marketing channels are most effective in generating leads. 

By analyzing the percentage of leads generated from different channels such as social media, email campaigns, or paid advertising, a business can allocate resources to the most effective channels and optimize its marketing strategy.

Once you optimize for your percentage of leads generated for specific marketing channels, you can use the overall number to track long-term progress and refer back to individual metrics if needed.

Email Open Rates

Image of Gmail

A marketing strategy focused on email will want to track specific metrics that can offer insights into whether your strategies are effective or not. The email open rate is the first metric you should be concerned with when running email marketing campaigns. For all industries, the average open rate is 20%, but you will want to complete further research for your specific industry.

This metric measures the percentage of people who open an email sent by your business. It's calculated by dividing the number of opened emails by the total number of emails sent. Low open rates signal that your subject lines or content aren't engaging enough. You can experiment with different subject lines and content to see what resonates with your audience and drives higher open rates.

Email open rates over time can help you understand how engaged your audience is with your brand. If you notice a decline in open rates, it may be a sign that some subscribers have lost interest in what you have to offer. In this case, you could consider segmenting your email list and tailoring content to specific groups to re-engage them.

Call-Show Rate

Call-show rate is a metric that measures the percentage of customers who show up for appointments or meetings that were scheduled with your business. This metric can help you understand how effectively you're able to convert leads into actual appointments.

If you notice that your call-show rate is low, it may be an indication that there's a problem with how appointments are being scheduled or confirmed. You could consider sending appointment reminders via email or SMS to ensure that customers don't forget about their scheduled meetings. You could also experiment with different scheduling tools or create email campaigns that help customers get prepared for the call.

Number of Qualified Leads

Tracking the number of qualified leads isn't as straightforward as some of the other metrics on this list. Rather than tracking how many leads your sales team closes or how many sales a customer makes, there is no specific metric that defines a qualified lead.

Many CRM tools have started incorporating several metrics together to determine a number that signifies how qualified a lead is. For example, if a person opts in for your lead magnet, that can be considered a lead. But if they then share the lead magnet on one of their social media sites, that can be considered a qualified lead.

The number of qualified leads serves as an indicator of how effective your marketing efforts are in generating leads and increasing brand awareness. As you optimize your strategies over time, you should also track and monitor this metric to understand how many leads you're able to generate from each campaign.

Lead Response Time

Image of a guy talking to the phone

Lead response time is a metric that measures the amount of time it takes your business to respond to a new lead inquiry. This includes any form of outreach such as emails, calls or messages. The faster you are able to respond to leads, the higher the chances of converting them into customers. In fact, businesses that respond to a customer within five minutes are 100 times more likely to connect and convert opportunities.

This metric is useful because it allows you to take a deeper look into your sales process to determine the problem. A low rate could mean your sales rep is busy and not responding to leads in a timely manner. It could also mean that your average sales cycle length is too complicated or slow and needs to be streamlined.

By tracking this metric regularly, you can measure the effectiveness of any changes you have implemented and make tweaks if needed. This will help ensure that your business always has a quick response time for potential customers.

Creating Your Own Sales KPI Dashboard

Being able to see all your important sales metrics KPI in one location gives your team the visibility and insight they need to make data-driven decisions. Use the most common metrics listed above to guide your dashboard creation and make sure all the metrics align with your overall business goals. Once you have a dashboard created, you'll have no trouble making the choices that lead to business growth.

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Kayvon Kay

Kayvon Kay

Kayvon has over two decades of experience working with high-level closers and perfecting his sales methodologies. He has earned the title of Canada’s #1 pharmaceutical sales representative and continues to share his expertise as a keynote speaker and through his multi-million-dollar coaching program.

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