KPIs for Sales and Marketing to Track

What are Key Performance Indicators?

In many companies, the sales team has a technical ability to measure and track their performance against KPIs, or Key Performance Indicators. In other cases, the marketing department simply has access to this information, so they use that information as a guide to help them make decisions on how they can improve their sales team’s performance in order to maximize gains in revenue.
KPIs do not have any inherent value. They are simply a tool for helping your organization track and analyze your business’ performance using this data.
The purpose of KPIs is not to tell you how good you are at your job, but rather to help you determine what needs improvement so that you can take action to help your business succeed.
For example:
1. How many leads do we have? (KPI)
2. How are our conversions? (KPI)
3. What are our revenue targets for each lifecycle stage? (KPI)
4. How many customer segments do we have? (KPI)
5. What percentage of our customers does each segment represent and is that segment profitable? (KPI)

Why Do You Need Key Performance Indicators?

A key performance indicator (KPI) is a numerical value that companies use to measure the relative success of their marketing or sales efforts. These metrics are important because they allow marketers or salespeople to know what’s working and what isn’t.
As a business owner, you should always be aware of how your marketing or sales efforts are performing. If you’re not, you’ll never be able to determine which strategies need more attention in order to boost your bottom line.
KPIs can be used for a variety of different things, such as:
• Increase trust with customers and prospects through sales messages that are more relevant and effective
• Improve profit margins by keeping better track of inventory levels
• Increase sales by increasing customer loyalty via promotions that have greater appeal and impact
• Find new ways to attract potential customers based on their social media behaviours, e-commerce profiles and demographics
The most common application for KPIs is in the sale process. This is why we’ve included it as part of our list of top 10 things every business should track. The reason is that when someone buys from your business, it’s often through a purchase funnel — in other words, someone begins his or her shopping experience on one website, goes to another site before making a purchase decision, then comes back to your site several days later when they want to complete the process. Knowing whether you have an average customer conversion rate — that is, how many people visit your website before making a purchase — will help you decide whether you have an opportunity for improvement on this front. It may also help you decide whether you need to spend more time promoting your product or service online (for example, through advertising). If there are spikes in traffic after this initial visit (or if people make multiple visits over time), then it may be time to consider strengthening the aesthetics of your website so that visitors feel more comfortable while they browse your site before they make any final purchases.
What types of KPIs are available? There are three main ways companies can track their KPIs: 1) Accounting measures – For example Profit Margins 2) Benchmarking measures – For example ROI 3) Measuring performance – For example: Achieving customer goals

How to Create Your own KPI’s

Over the past several years there has been a plethora of “KPIs” that have appeared in the marketing and sales world. For some reason, these metrics have taken off as a way to track sales, lead generation, and customer lifetime value.
What is a KPI? It is a measurable metric that can be used to measure success or performance with your business. But what is truly important KPIs for your business? What are the KPIs you should be tracking?
To help answer this question, I created a series of PowerPoints with five different KPIs for your business — the average length of customer lifetime value (ALCV), the average number of leads generated per sale, lead conversion rate (LCR), revenue per lead generated (RPLG) and average time spent on Facebook ads by users (AFB) — which I hope will provide some insight into what you should be measuring and how to use them to further improve your business.

How to Measure the Different KPIs in Your Business

The great thing about KPIs is that you can configure them to suit the needs of your business. You can decide how much time needs to pass before the actual call or email is made. You can decide who needs to be contacted. And you can choose whether or not your KPIs should include different departments for different types of marketing and sales, such as internal sales versus external sales.
You don’t need them all at once, though. It’s a good idea to periodically re-evaluate your KPIs in order to see if there’s been any change in the relative success of different components of your marketing and sales efforts.

Percentage of Leads in Each Lifecycle Stage

Cost per lead is the dollar amount that customers are required to spend on your product or service in order to bring them into the customer relationship.
For example, if you had a $100 product and it brought in 100 customers, then the cost of bringing one of your customers into the relationship would be $100. If your product had a price tag of $300 and brought in 300 customers, then the cost of bringing one customer into the relationship would be $300.
Therefore, if you have a well-performing sales funnel (which will have many more leads than just 100), then it’s important to figure out how much each customer should spend in order to bring them into your sales funnel.
You can use Google or other tools to figure out exactly how much each customer should spend on your product or service before they’re brought into your sales funnel. You can also use this information to determine whether or not you need more than one salesperson working on your sales funnel at a time.
Keywords: Cost Per Lead Percentage
Text: This is an important KPIs metric because it tells you exactly how much each customer should spend before they become part of your sales process for having purchased from you. __________________________________________________________________________ Research shows that people are most likely to buy from someone who represents themselves as being “Real”, “Authentic”, and “Trusted”. So if you want more people to buy from you, then sign up for any name that is “Real”, “Authentic” and “Trusted”. Your company name can’t be fake or a fraud so why choose fake companies instead? __________________________________________________________________________ There are three stages measuring for Lead Collection — Acquisition, Retention and Revenue — so it’s important that all these stages are measured equally! __________________________________________________________________________ The first stage is called “Acquisition” and includes everything from “Discovering” through “Converting” while the second stage is called “Retention” and includes everything from “Loyalty” through “Retaining” while the third stage is called “Revenue” which includes everything from “Creating Value For Customers’ Loyalties” through “Selling Products And Services For Money And Revenues”! __________________________________________________________________________ The best way we can summarize this kind of data is through our six key metrics below: Acquisition Cost/Leads Revenue/Leads Retention Revenue/Leads Revenue/Lead

MQL-to-Customer Conversion Rate

In any business, there are two groups of people that you are dealing with: customers and prospects. As your business grows, you may find that the number of leads you’re receiving from each stage of your customer lifecycle is different.
Would you like to know what percentage of each stage of the customer lifecycle your company is currently at? This is where MQL (Mogilev’s Qualitative Mapping) comes in handy. You can create a custom report that shows you this information right on the front page.
You can also use this data to gauge the effectiveness of your marketing efforts by tracking the impact and value your sales efforts have on each stage of the customer lifecycle — which means conversion rates and abandonment rates.
The most common KPIs used by businesses today include: Return on Investment (ROI), Net Promoter Score, Customer Lifetime Value (CLTV), Demographic Targeting, Retention Rate, Conversion Rate, Satisfaction Rate, Added Price Earned Percentage (APEP), Billings/Refunds Percentage (B/R%), and Return On Investment (ROI). A list of all Key Performance Indicators or KPIs can be found here:
I should note that in this article I will be referring to key performance indicators as KPIs when speaking about sales and marketing efforts because that’s the traditional term used in the industry; however many readers will likely prefer instead to call them metrics or statuses as they have been in other articles on this blog.

Average Length of Customer Lifecycle

The average length of the customer lifecycle is a measurement of how long a customer has been with your company’s brand. The longer the customer has been with your company, the better. The average customer lifetime is less than 6 months.
The longer the customer has been with your company, the better. The average customer lifetime is between 6-18 months.
The average time spent in purchasing a product from your store is between 1-2 days.
For example:
Your store can display on its website that customers are spending up to 4 hours on average per purchase experience.
The longer a customer has been with your company’s brand, the better. The longer a customer has been with your company, the better. The average time spent in purchasing a product from your store is between 1-2 days. For example, Your store can display on its website that customers are spending up to 4 hours on average per purchase experience. Your store can display on its website that customers are spending up to 2 hours on average per purchase experience. Your store can display on its website that customers are spending up to 8 hours on average per purchase experience. Your store can display on its website that customers are spending up to 6 hours on average per purchase experience. This example illustrates how you can set individual KPIs for each of these segments case by case based upon their impact and desired results for those segments and for you as an organization overall (see notes below).

The volume of New Opportunities

What’s the average length of the customer lifecycle?
Are you looking at it from a salesperson’s perspective, or is it more analytical?
A rough and ready way to think about the average length of the customer lifecycle is to ask the question “how long does it take for a customer to become a repeat customer?”
The answer to that question varies depending on your industry and your goal. Perhaps you want your customers to become customers who buy more than they used to. Or perhaps you want them to become repeat customers who buy more than they used to. Either way, the answer is going to be different for everyone.
It’s also important that we determine how often we need customers before we can calculate their average length of purchase. For example, if your company sells clothes, perhaps you need new customers at an average rate of once every four weeks (this rate will likely vary depending on your sales volume). On the other hand, if you sell housing or furniture, perhaps you only need one new customer per month (again this will likely vary slightly depending on your sales volume). What I have found useful is that as long as we are tracking these metrics and reporting them in some form against our overall business goals, there should be few concerns about what our KPIs are telling us about our business.
Once again though — not all KPIs are created equal. If we are selling a product whose market value fluctuates with price (such as shoes), then we want a high level of accuracy when measuring price change over time (i.e., over time the price tends towards its target value). If, however, we are selling a product whose market value is anchored at some point in time rather than fluctuating with price (such as housing), then we might prefer less-accurate tracking methods via percentage change (i.e., say something like “the proportion between pre-tax and post-tax revenue for this quarter has remained constant compared with last quarter — would you expect revenue levels to remain constant in future quarters?”)
What should be our next steps? These questions provide some great starting points for further discussion and exploration:
What types of measures do I track within my KPIs? Are my KPI metrics easily understood by others outside my organization? How much effort do I put into explaining my KPI metrics in order to increase their awareness by those outside my organization? What happens when I update my KPIs

Cost Per Lead

Without a doubt, the most important and most commonly tracked performance metrics are cost per lead. That’s because it’s the metric that most directly relates to the business you’re in.
It’s also important to calculate your costs per lead because it tells you how much money it costs you to acquire one new lead versus a new prospect who is not a new lead. And while the metric reveals some key trends, it doesn’t provide any insight beyond that which you can find from just looking at leads and prospects on your list.
Cost per lead is a good metric for generating leads for your business because when you track leads, you gain insight into the quality of those leads as well as their value to your business.
This infographic shows two metrics that can be useful when calculating cost per lead:
1) how long it takes to convert a lead into a sale – this is commonly referred to as conversion rate, and 2) how much money are spent on acquiring each new customer – this is referred to as acquisition cost.
It is important to know what price points exist for each of these metrics so that you can set up an optimal price point for each of them based on your specific business needs. For example, if you are selling technology software products or something similar, then converting customers into sales is more important than acquiring customers at any price point. In this case, being comfortable with the revenue that comes from sales conversions may be more important than whether or not you have an average cost per selected contact (i.e., revenue) since there isn’t much difference between converting a prospect into an order or eventually acquiring them at any price level (e.g., $19/month).
Another thing worth noting about conversion rates is that they reflect exactly how many prospects need to be converted before they convert into sales – they won’t tell us anything about how many prospects need to be converted before they decide to buy something from us vs how many prospects need to convert before they buy something from us but decide not to buy anything from us (i.e., people who don’t “consider buying anything yet”). It is useful in this case because if we truly want someone who doesn’t currently want something but has been given an offer, we should have enough information about what types of offers and interest levels exist so we can calculate the number required before someone decides he/she does

Cost Per Acquisition

In the past, I’ve written about Cost Per Acquisition (CPA) – a metric that measures the value of each lead your business provides in return for a small fee.
However, there are many other ways to measure a business’s performance in terms of Cost Per Acquisition. For example, you can also measure your Sales Cost per Lead (SCPL), and Sales Cost per Engagement (SCPE). You can also measure your Business Development Costs per Sale (BDS). The last one is what many people call an Acquisition Cost per Lead or ACPL.
The main thing to remember with these metrics is that they all work best when used in combination with other metrics. Different companies use different methods and metrics for CPA, SCPL, BDS, BDS and ACPL.
To track all of these metrics, you will have to add them all up and give yourself a price tag on every lead you generate. It would be a good idea to benchmark your process against other companies who are doing the same thing by looking at their SCPL and acpl / sales cost/ engagement costs etc.

Customer Retention Rate

Let’s face it, in today’s fast-paced online world, there are a lot of things that can kill your customers. The number one killer is lead loss. So, how do you retain your customers? A simple way is to keep track of these important KPIs:
1. Customer Acquisition Cost (CAC)
2. Customer Acquisition Costs (CAC)
3. Revenue Loss
4. Revenue Gain
5. Gross Profit Margin

Average Revenue Per Account

The average revenue per customer (ARPC) is often used as a measurement of the success of your marketing efforts. The ARPC, or Average Revenue Per Customer, can be defined as the total revenue generated by a customer across their usage of your products or services.
One way to calculate the ARP for your customers is by using Google Analytics. But there may be times when you want to understand just how effective your business is at gathering and converting leads into customers. The best way to do that is through the use of an average revenue per conversion metric, which allows you to measure just how effective your marketing campaign has been overtime at bringing new customers into your sales funnel.
To calculate the ARP, simply measure each month’s total number of sales made by all of a customer’s accounts and divide them together. For example, if there are three accounts in total with $5,000 in sales each month then that means that each account had earned $50,000 in revenue during those three months together. Then simply multiply those numbers together and divide by three then multiply the result by twelve (in other words, that means one dollar earned for every three dollars spent).
This calculation gives you an idea as to how well you are converting new customers into existing customers over time — and hopefully this helps you determine how effectively you are reaching out to new and existing customers alike.

Net Promoter Score (NPS)

The number one question asked by business owners and investors is “How are we doing?” In this article, I will share with you the results of my recent study on what it takes to build a winning company.
The first step is to figure out the right KPIs for your business. Then, you will set up the right measurement system that makes it easy to track performance and provide your business with valuable feedback. In this article, I will share with you how I broke down data into key performance indicators (KPIs), which are indicators that help you measure your business’s performance and measure your progress towards achieving specific goals.
Customers: Without customers, there is no business.
I often hear people remark that they don’t have enough customers because they didn’t know how many they had before they started their business. If a customer is not a customer to you, then he or she isn’t a customer to anybody else either. So, it’s time for an update: customers are all around us . There are literally millions of them in every country in the world. And we all have them in some form or another .
So what are those thousands of customers who we don’t have? What are they? What do they want? And where do they go when we can’t see them any more?
The answer is simple: their presence on your web page, their willingness to buy from you, their propensity to recommend your products and services to other people, their trustworthiness , and most importantly, their loyalty .
Now that you have answered these questions, let’s answer another big question: what does it take to get them back in our lives again? That’s where it gets interesting. Let me give you a few numbers that I’ve been working on recently (as part of the research for my book) : 1) The average length of time a customer stays with us – 12 months 2) The average amount spent by customers – $300 3) The average number of purchases per table – 500 4) The average number of repeat buyers per table – 3 5) The average time spent visiting our website per customer – 100 seconds 6) The average number of visits per week per table – 20 7) The average amount spent by a repeat buyer per table – $20 8) The top 10% spend more than 90% (on average ) 9 ) That’s just one example – any other metrics look similar? These numbers might be surprising at first sight but if you

Customer Lifetime Value (CLV)

CLV is a metric that has been used in many industries; a measure of the total value of a customer. The business owner or manager should collect this metric into one place and use it for planning purposes.
A good way to help achieve your goals is to set up an online measurement tool so that you can track how well your marketing and sales efforts are being implemented.
A good way to track your KPIs is through online tools like Google Analytics. These online tracking tools allow you to create reports on key performance indicators (KPIs), which will let you know how well you’re doing at ensuring that your customers get what they want when they want it.
The great thing about using Google Analytics to track your KPIs is that it provides some great insight into the effectiveness of your marketing and sales efforts, as well as giving you insight into what you should be doing differently next time around. You should also make sure that when you’re able to use these reports, they’re not too cluttered with numbers so that they aren’t distracting from the overall message of whatever messaging campaign you’re running at the time.


In the world of marketing, there are many types of KPIs that marketers can track to help them understand the effectiveness of their marketing efforts and determine whether they are making progress and achieving their strategies. Here’s a look at the most common and important KPIs used by marketers:
Cost per lead (CPL) Cost per conversion (CPC): The cost to acquire a new customer and convert them into a profitable one.
Cost per action: The cost to perform a specific action on your site or email list, such as registering for a newsletter.
Cost per action conversion: How much you need to spend in order to acquire someone to convert into a customer, such as converting one person into another.
Cost per dollar spent: How much you need to spend in order to acquire one new customer who then becomes an established customer.
Cost per user: How much you need to spend in order to acquire 100 users from your website or email list who then become established customers.
Total cost of acquisition (TCA): The total amount that is spent before any sales revenues come in, such as website design fees, hosting fees, etc.
Please note that just like any other metric, all three of these are relative numbers because they depend on how good your marketing efforts are compared with those of your competition. If you aren’t spending more than what your competitor is doing, then it’s hard for you to tell whether your efforts are having an impact on attracting more customers or simply converting traffic from visitors into active customers. It may also be important for you to consider how well the metrics work against other businesses that have similar goals with the same products and services, so if you use multiple methods for tracking these metrics, then it might be useful for you to compare these different methods side-by-side so that you can see if any comparisons will show statistically significant differences between them or not. A good way of doing this is by using our free web app called Comparative Metrics which will show all of these metrics side-by-side so that they can be compared with each other. You can search through the app by entering keywords related to marketing metrics or go directly into our website where we have all the data available right at your fingertips so that you can do comparisons easily! This means no more searching through spreadsheets! We hope this post has given you some valuable insights on how vital it is for marketers today when it comes time to track success indicators like

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