Top 14 Sales Analytics Metrics You Should Be Monitoring (and Why)

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Especially in sales analytics, data is king. With so much information coming in every day (and every hour and every minute), though, it can be hard to know which metrics genuinely matter.

In this article, we discuss the top 14 most essential sales analytics metrics every team should be monitoring, as well as why you should be monitoring them.

Discover everything you need to know below.

1. Total Revenue in Sales Analytics

Total revenue, or gross revenue, refers to the total income your business generates from selling goods or services during a specific period. It essentially represents the money earned before subtracting any expenses.

Total revenue is calculated by multiplying the price of goods or services by the quantity sold. The formula looks like this:

Total Revenue = Price x Quantity.

2. Annual Recurring Revenue in Sales Analytics

If your business is subscription-based, annual recurring revenue (ARR) is one of the most important sales analytics metrics to track. This metric helps you understand predictable and recurring revenue over one year.

To calculate annual recurring revenue, you would use this formula:

ARR = (Subscription revenue for the year + Recurring revenue from add-ons and upgrades) – revenue lost from cancellations and downgrades for the year.

3. Average Customer Lifetime Value

Average customer lifetime value (ACLV) is a metric that businesses use to estimate the average profit they can expect to generate from a typical customer over the course of their relationship with the brand.

This metric tells you which customer segments are (and will potentially continue to be) the most lucrative to your business.

The formula to calculate ACLV is as follows:

ACLV = Average purchase value x Average purchase frequency x Average customer lifespan

4. Quota Attainment

Quota attainment helps you understand how well your sales reps are performing and how many of them are meeting (or exceeding) their specific quotas in sales analytics.

To quantify quota attainment, simply divide a person or team’s total sales by their sales target or quota. Then, multiply that number by 100 to get a percentage.

For example, say a person’s monthly quota was $15,000, and they sold $13,500. In that case, the formula would look like this: $13,500 / $15,000 = 0.9 or 90 percent.

5. Conversion Rate in Sales Analytics

A sales conversion rate specifically refers to the percentage of leads or prospects who convert into paying customers. It’s a key metric used by sales and marketing teams to gauge the effectiveness of their efforts in turning potential customers into actual buyers.

The conversion rate is calculated by dividing the total number of sales by the total number of qualified leads and multiplying the result by 100 to express it as a percentage.

For example, say a sales team receives 100 qualified leads in a month and closes deals with 20 of them. In that case, their monthly sales conversion rate would be (20 / 100) x 100 = 20%.

6. Average Deal Size/Selling Price

The average deal size or selling price tells you the average dollar amount of each deal closed in sales analytics.

This information, in turn, can help you understand the average price people are willing to pay for your product or service, as well as the difference between the perceived value of your product or service and its actual value.

You can calculate the average deal size or selling price using this formula:

Average selling price = (total $ of closed deals over a specific time period) / (total # of deals)

7. Average Sales Cycle Length

The average sales cycle length describes the average amount of time it takes for an unqualified lead to become a paying customer.

Understanding your company’s average sales cycle length helps with forecasting and resource optimization. It also gives you a starting point so you can work on shortening the average sales cycle and providing a more positive customer experience.

To calculate the average sales cycle length, use this formula:

Average Sales Cycle Length = Total # of Days for All Deals / Total # of Deals

8. Annual Contract Value

As the name suggests, the annual contract value tells you the average revenue generated each year for each contract.

This information helps you understand the worth of your customer base on an annual basis. It also simplifies the process of comparing different contracts or customers.

You can calculate the annual contract value with the following formula:

Annual Contract Value = Total contract value / Total # of years in contract

If you have a 2-year contract valued at $24,000, for example, the annual contract value would be $12,000.

9. Average Profit Margin

A profit margin measures the percentage of profit your company makes on its revenue. Regularly tracking the average profit margin tells you a lot about how your company is performing.

Use this formula to calculate the average profit margin:

Average profit margin = net income / net sales

To calculate net income, subtract total expenses from total revenue. Calculate net sales by subtracting total returns or refunds from total sales.

10. Deal Slippage

Deal slippage tells you the number of deals that fail to close within a forecasted range. Say a deal is expected to close in the first quarter but gets pushed to the second. In that case, the deal would be considered a slip.

To calculate deal slippage as a percentage, divide the number of slipped deals by the number of total deals in a given time frame. Then, multiply that number by 100.

11. Customer Acquisition Cost

Customer acquisition cost tells you, on average, how much it costs for your company to gain one new customer.

To calculate customer acquisition cost, use this formula:

Customer Acquisition Cost = Total sales + total marketing costs / Number of customers acquired

Keep in mind that, ideally, the customer acquisition cost should be lower than the customer’s lifetime value. Otherwise, you’ll end up losing money long-term.

12. Average Deal Size

The average deal size is another reasonably straightforward metric. It lets you know the average value of each deal generated.

You can calculate this metric using this formula:

Average deal size = Total revenue from all deals / Total number of deals.

This metric helps you evaluate your sales team’s current performance and set more realistic goals. It also helps with forecasting and allows you to make more accurate predictions for the future.

13. Churn Rate

The churn rate tells you the percentage of customers who decide to break or not renew their contracts after a specific period.

To calculate your company’s churn rate, divide the number of customers you lost in a given time period by the total number of customers you had at the beginning of that period.

Say you had 200 customers at the beginning of the month and had 190 at the end. In that case, your churn rate would be 5 percent.

The lower your churn rate, the better, as that means you’re retaining the majority of your customers.

14. Net Promoter Score

Net promoter score or NPS helps you gauge your customers’ loyalty to your brand. To calculate this metric, you’ll need to survey your customers and ask them, on a scale of one to ten, how likely they are to recommend your product or service.

Customers who give a nine or ten are loyal, enthusiastic, and considered to be promoters. Customers who give a seven or eight are satisfied. Customers who give anything from one to six are unhappy and considered to be detractors.

To figure out your company’s net promoter score, take away the percentage of detractors from the percentage of promoters.

Say you surveyed 100 people, and 40 percent were detractors while 50 percent were promoters. In that case, you’d subtract 40 from 50, resulting in an NPS of 10.

How Can DashboardFox Help in Sales Analytics?

As we’ve explored across the spectrum of essential sales analytics metrics, the significance of having the right tools to monitor, measure, and interpret these metrics cannot be overstated. This is where

DashboardFox not only enters the scene but also shines as a beacon of clarity amidst the sea of data. With its advanced data visualization capabilities, DashboardFox brings each of these 14 metrics to life in a way that is both insightful and actionable.

But DashboardFox’s prowess is not limited to its visual finesse; it is also a haven for business owners who crave simplicity. Regardless of your expertise in coding or the lack thereof, DashboardFox is crafted to ensure that you can leap over the technical hurdles and land right into the heart of data-driven decision-making.

Its user-friendly interface allows you to navigate through complex data with ease, transforming the way you view and utilize your sales analytics.

Now, if this piqued your interest, imagine what a deep dive could do. We invite you to witness firsthand how DashboardFox can elevate your business. Don’t miss the opportunity to turn metrics into your competitive advantage. Book a meeting or schedule a live demo session, at absolutely no cost, and start your journey towards data mastery with DashboardFox today.

Unleash the potential of your sales data with DashboardFox.

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