Pipedrive is one of the most popular CRM for sales teams to plan and manage the sales pipeline. While Pipedrive takes care of the heavy lifting, streamlining all the tasks, deals, and activities related to sales, as a sales leader you still have to figure out what KPIs should you measure from your CRM to track the progress of your sales team.
Why is it important?
With the modern-day sales process becoming highly data driven and more than just about selling, it is important that sales leaders measure and optimize for KPIs across the board giving clear visibility into how the teams are performing.
In this post, we bring to you the most important sales KPIs that every sales leader must measure in Pipedrive:
Deals Closed is the single most important sales KPI for sales reps. It is using this metric you will measure how your sales team is performing, both as a team and as individuals.
In Pipedrive you can easily track the deals closed using Filters, and get to know key information like total deals closed, which sales reps are closing how many deals, and how many deals are on the verge of converting etc.
Average deal value refers to how much revenue the sales team makes from a deal on an average - it is an important sales KPI to understand how the efforts of your sales team are impacting the bottom line.
In Pipedrive, you can check the average deal value for any time period from your sales dashboard under the Insights tab.
You can even compare the numbers for the average value for deals won vs. deals lost vs. all deals to help you drill down and work on specific aspects of the sales process to help increase the average deal size.
The Average time to close also known as the Average Sales cycle length is the amount of time it takes from your first interaction with a prospect to the time you close the deal and they become a customer.
Average time to close is one of the most important metrics for sales teams, and shows how much time it takes to move a prospect across the sales funnel.
In Pipedrive, you can understand the average time to close data from the Insights where you can see how long it takes to move your prospect through different stages of the sales pipeline.
Note: The Average time to close is calculated across all won deals.
Sales forecasting is predicting how many deals your team will close at any given period. It is a key factor in helping you allocate resources for your sales team in the most effective way possible.
Having an accurate sales forecast allows you to make informed decisions across functions whether it is setting your quarterly goals or making new hires or allocating budgets etc.
Sales Pipeline Coverage refers to how full your pipeline is across stages, with respect to the sales quote - it can be calculated for both the team and the individual sales reps.
By calculating Sales Pipeline Coverage, you can understand the progress each reps have made, whether they are falling behind on the quota, or what additional resources are required to hit the sales quota etc.
Win Rate is the percentage of the deals in relation to the total number of deals that enter the sales pipeline.
It is one of the most important KPIs to track for sales teams because Win Rate helps you identify how exactly the sales team is performing, the team’s strengths, whether there are any visible gaps in the sales process etc.
For example, a higher win percentage means that the process in place is efficient and you should probably allocate more resources and bring more opportunities to the pipeline.
In Pipedrive, you can calculate both the overall Win Rate and loss rate as well as funnel rates which clearly tells you the deal conversion rate between different stages in your sales pipeline.
Opportunity Win Rate is a drill-down of the Win Rate - it is the ratio of your win rate and your loss rate;
In simple words, Opportunity Win Rate is a comparison of your win rate and lose rate at any given stage of your sales pipeline.
The Sale-to-Date KPI is a comparison of the deals you have currently won with that of the historical data for the same period of time.
For example, when calculating the Sales-to-Date for the current year’s Q2, you will compare all the deals won in that time period with the deals won in Q2 of last year.
Activity Metrics are KPIs that helps in measuring the day-to-day activities of the sales process, both as a team and individually.
Some of the activity metrics include:
Lead Response Time is the amount of time it takes to reach out to a prospect for the first time after they have entered your sales pipeline.
Lead response time shows how proactive the sales reps are when it comes to initiating contact with the prospect and helping close any functional gaps which might cause a delay in the outreach.
Emails sent is the number of emails a sales rep sends out on any given day - this is the combined value of all emails - whether it is the first outreach, follow-up, or a deal closer.
In Pipedrive, you can segment and view the number of emails sent by sales reps for any given time period.
Follow-ups made refers to the number of sales follow-ups your sales reps during any given period.
It is an important yet often overlooked metric that is very useful in gauging the performance of the sales team.
Why is this important?
At any given time, the sales pipeline is filled with deals at different stages - as a sales leader you have to ensure that there is considerable progress across all of the stages - because sometimes sales reps might focus on just the top of the funnel numbers move across the With different deals at are often overlooked yet important KPI for sales reps - it means that Calls made is another good indicator for where and how your sales reps are spending their day.
For sales leaders, it is crucial to stay up-to-date with how the sales teams are performing; this is only possible by measuring the right sales KPIs - use this guide to make sure you get the most out of your Pipedrive CRM to scale your sales process!