5 Important KPI Metrics in B2B Sales

Tracking KPI in B2B sales is crucial for the development of your business in the industrial sector. There are many KPIs to keep track of, but here are five of the essential KPI in B2B sales that you should be watching to keep your business generating leads and ultimately, turn into customers.

1. Customer Acquisition Cost 

One of the most important KPIs in B2B sales is the Customer Acquisition Cost (CAC). This metric measures the total cost of acquiring a new customer, including marketing and sales expenses. To calculate the CAC, divide your total marketing and sales expenditure for a period of time, by the number of new customers acquired in the same period. It’s important to lower the CAC when possible. One of the ways to lower it is by improving lead generation efforts. You may need to optimize your website for SEO and run more targeted ad campaigns. 

2. Lead-to-Customer Conversion Rate

Another key metric to track in B2B sales is the Lead-to-Customer Conversion Rate. This metric measures the percentage of leads that turn into paying customers. By monitoring this KPI, you can identify potential bottlenecks in your sales funnel and make optimizations to improve conversion rates to generate more revenue.

3. Win Rate

The success of a sales representative can be measured through win rate. The win rate is the percentage of sales opportunities converted into sales. Many factors can affect the win rate, for example, the quality of leads a sales rep is given to contact. If the leads are bad, it is more difficult to generate sales. Providing a sales rep with high quality leads along with support and training will help grow your win rate. 

4. Sales Pipeline Velocity

The sales pipeline velocity is the speed which sales opportunities move through the pipeline. The faster, the better. This means that you are closing more deals. You can increase the sales pipeline velocity by having a clear process in place. You also should focus on quality of lead vs. quantity of leads. Make sure you have a solid customer profile so that you can nurture those leads and convert them into paying customers. Be sure to take a look at our prospecting services. We have you generate tailored industrial sales leads and strategic appointment setting services.

5. Sales Qualified Opportunity Rate 

The Sales Qualified Opportunity Rate, or SQO, is a KPI in B2B sales to measure the effectiveness of the sales process. It helps businesses track progress in generating leads and converting them into paying customers. This B2B sales metric helps businesses determine what areas they must improve the process. To improve this KPI, you must focus on generating better leads and sales process. 

Turning Leads into Customers

There are many KPI in B2B sales to keep track of. We only listed 5 of them in this article. Keeping track of all of them and using this data to enhance your sales process is essential for financial development.