19 Sales KPIs to Track for B2B Sales Success

High-performing B2B sales teams don’t rely on guesswork—they harness the power of data to drive decisions, refine strategies, and consistently outperform their goals. At the heart of this approach are Sales Key Performance Indicators (KPIs), which provide actionable insights into every aspect of the sales process. Whether it’s boosting conversion rates or accelerating sales cycles, the following sales KPIs that we are going to explore are going to transform how B2B companies approach success.

Author: SalesHero

Date: Nov 22, 2024

In this article, you will learn about:

What are KPIs in Sales?

Sales KPIs, or Key Performance Indicators, are like the scorecards for your sales team. They’re measurable values that show how well your sales efforts are working. Instead of guessing how your sales team is doing, KPIs give you solid numbers to work with. They tell you what’s working, what’s not, and where you should focus your energy.

Why are Sales KPIs so Important?

Sales KPIs are essential because they take the guesswork out of managing and improving your sales performance. They provide clear, actionable insights that help you drive results, make informed decisions, and stay aligned with your business goals. Here's why they matter so much:

1. They Keep Everyone Focused on Goals

Sales KPIs create a roadmap for your team. Instead of chasing random opportunities, they focus efforts on specific, measurable objectives—whether it’s increasing lead conversion rates, improving average deal size, or hitting revenue targets. They align individual and team efforts with the company’s big-picture goals, ensuring everyone pulls in the same direction.

2. They Provide a Reality Check

Without KPIs, you might assume things are going great—or worse, realize too late that your sales are underperforming. KPIs give you a reality check by providing hard data about what’s working and what isn’t. If customer churn is creeping up or your average sales cycle is stretching too long, KPIs will catch it before it becomes a bigger problem.

3. They Identify Strengths and Weaknesses

By tracking KPIs, you can see who your star performers are and who might need additional coaching or support. For example, one rep might excel at closing large deals, while another is great at generating leads. These insights allow managers to fine-tune their strategies, assign the right tasks to the right people, and help every rep improve.

4. They Boost Team Motivation

Salespeople thrive on competition and measurable achievements. KPIs, like sales leaderboards or target attainment rates, give them a clear picture of how they’re doing compared to their peers or their goals. Celebrating wins and identifying improvement areas creates a culture of accountability and motivation.

5. They Drive Better Forecasting and Planning

KPIs aren’t just about looking at the past—they’re about planning for the future. Metrics like pipeline value, sales opportunities, and conversion rates help you predict future revenue and resource needs. This makes it easier to set realistic sales targets and allocate resources more effectively.

6. They Improve Decision-Making

Whether it’s deciding which products to promote, which leads to prioritize, or how to adjust pricing strategies, KPIs provide the data you need to make smarter decisions. For instance, tracking lead-to-sale conversion rates can reveal which marketing channels bring in high-quality leads, helping you allocate your budget wisely.

7. They Help You Stay Competitive

In the fast-paced world of B2B sales, staying ahead means constantly improving. Sales KPIs allow you to benchmark your performance against industry standards or competitors. If your customer acquisition costs are higher than the norm or your retention rate is slipping, KPIs give you the early warning signs needed to adjust and stay competitive.

20 (KPIs) Key Performance Indicators for Sales

Sales KPIs should be tailored to each business's unique needs, but there are certain metrics that work well across a wide range of organizations. Here are 21 key sales KPIs that are widely applicable:

1. Monthly Sales Growth

In B2B sales, monitoring monthly sales growth reveals how well a company is capturing opportunities and responding to market demands. Consistent growth can indicate that the sales team is effectively nurturing client relationships, while stagnant or declining sales may reflect competitive pressures, misaligned strategies, or client dissatisfaction.

For example, if a software company generates $200,000 in sales in one month and $220,000 the next, the 10% growth could result from onboarding a new enterprise client or expanding contracts with existing accounts.

Calculation Formula:

(Current Month’s Sales−Previous Month’s Sales)/Previous Month’s Sales)×100

Achieving steady growth requires aligning sales efforts with client needs, providing tailored solutions, and setting realistic, motivating targets for the team.

2. Average Profit Margin

In B2B, average profit margin reflects the efficiency of sales operations and pricing strategies. This KPI helps determine if contracts and deals are contributing meaningfully to the bottom line after deducting associated costs like product delivery, implementation, and account management.

For example, a marketing agency landing a $50,000 contract with $30,000 in associated costs achieves a 40% profit margin. However, if hidden expenses like prolonged onboarding or frequent revisions eat into profits, it signals a need to review pricing structures or service delivery models.

Calculation Formula:

(Net Income/Net Sales)×100

Monitoring profit margins across products, regions, and clients helps identify the most lucrative areas to prioritize.

3. Monthly Sales Bookings

Sales bookings in B2B measure the total value of new contracts or deals signed in a month, often with associated costs factored in. This metric highlights the effectiveness of the sales team in closing deals that sustain business growth.

For example, if a SaaS provider closes $500,000 in new contracts but has transaction-related costs of $50,000, their net bookings value is $450,000. This figure provides insight into sales productivity and helps with forecasting.

Calculation Formula:

Total New Sales Value-(Average Cost Per Transaction×Total Number of Transactions)

A drop in bookings might suggest longer sales cycles, stronger competition, or misaligned value propositions.

4. Sales Opportunities

In B2B sales, tracking sales opportunities involves evaluating the value of leads based on their likelihood of closing. Leads progress through stages like qualification, proposal, and negotiation, each assigned a probability of conversion.

For instance, if a $50,000 deal is in the negotiation phase with a 50% likelihood of closing, its weighted value is $25,000.

Calculation Formula:

Value of Sale × Opportunity Status Weight

This metric enables forecasting and helps prioritize high-value leads. A consistent decline in opportunities could indicate a need to improve lead generation or proposal quality.

5. Sales Target Attainment

Sales target attainment measures how effectively a B2B sales team meets its set quotas. By comparing performance against targets, sales leaders can evaluate individual and team productivity.

For example, if a sales rep has a quarterly target of $300,000 and achieves $250,000 in revenue, their attainment is 83%.

Calculation Formula:

(Sales for Current Period/Sales Target) × 100

Underperforming teams may need additional training or adjustments in strategy, while consistent overperformance might indicate room to increase quotas.

6. Quote-to-Close Ratio

This KPI evaluates how many quotes sent to prospects result in closed deals. In a B2B context, this metric sheds light on the effectiveness of the sales pitch and the alignment between client needs and the solutions offered.

For example, if a rep sends 20 quotes in a month and closes 5 deals, their quote-to-close ratio is 25%.

Calculation Formula:

(Sales for Current Period/Sales Target)×100

A low ratio may indicate issues like pricing misalignment, weak proposals, or targeting the wrong leads.

7. Average Purchase Value

In B2B, average purchase value represents the average revenue generated per client transaction. Increasing this metric often involves cross-selling, upselling, or creating tailored bundles.

For instance, if a consulting firm earns $300,000 across 10 client projects, the average purchase value is $30,000.

Calculation Formula:

Total Sales/Number of Transactions

Low values may suggest underpricing or missed opportunities to add value. Monitoring trends helps sales teams refine their strategies.

8. Monthly Calls (or Emails) Per Sales Rep

This KPI tracks the number of calls or emails a sales rep makes in a month to measure productivity. While volume is important, success often lies in balancing quantity with quality. A high activity rate without meaningful outcomes may signal inefficient targeting or inadequate training.

For example, if a sales team member makes 200 calls in a month and converts 10 leads into sales meetings, their conversion rate for calls is 5%.

Calculation Formula:

(Number of Qualified Leads or Meetings/Total Calls or Emails)×100

Consistent monitoring helps identify top performers and areas where reps may need coaching. For instance, if two reps make similar volumes of calls but achieve vastly different results, the team can focus on improving the effectiveness of the underperformer’s pitch.

9. Sales per Rep

Sales per rep measures the revenue generated by individual sales team members, serving as a benchmark for performance. Comparing this KPI over time or against peers helps sales managers identify trends, reward high achievers, and provide targeted training for those falling behind.

For example, if a B2B rep closes deals worth $100,000 in a quarter, and the team as a whole generates $1 million, that rep is responsible for 10% of total sales.

Calculation Formula:

Total Sales by Rep/Total Sales by Team

A low contribution percentage might suggest inefficiencies in prospecting or deal management. Conversely, high-performing reps can be studied to replicate their strategies across the team.

10. Product Performance

Calculation Formula:

Sales Revenue per Product/Total Revenue×100

By tracking these trends, sales teams can adjust their efforts to push products that are performing well and investigate the reasons behind any decline in sales for underperforming products.

11. Average New Deal Size/Length

Tracking the average size and duration of new deals offers insights into the profitability and efficiency of sales efforts.

For example, if a B2B software company closes five contracts totaling $500,000 in one month, the average new deal size is $100,000. Similarly, if these deals collectively took 150 days to close, the average new deal length is 30 days.

Calculation Formula:

Total Revenue from New Deals/Number of New Deals

Average New Deal Length=Total Days to Close New Deals/Number of New Deals

Shorter sales cycles for high-value deals suggest strong sales efficiency, while longer cycles for smaller deals could indicate resource mismanagement.

12. Average Sales Cycle Length

This KPI calculates the average time taken to move a prospect from initial contact to a signed agreement. In B2B sales, where cycles are often lengthy, understanding this metric is crucial for streamlining processes.

For example, if a logistics firm closes 10 deals over 300 days, the average sales cycle length is 30 days.

Calculation Formula:

Total Days to Close All Sales/Total Number of Deals

Analyzing this data helps sales teams identify bottlenecks, optimize workflows, and set realistic expectations for deal closures.

13. Lead-to-Sale Percentage

Also known as the lead conversion rate, this KPI measures the percentage of leads that convert into paying customers.

For example, if a B2B sales team generates 200 leads in a month and 40 become clients, the lead-to-sale percentage is 20%.

Calculation Formula:

(Number of Sales/Number of Leads)×100

A low conversion rate might point to weak lead qualification, poor follow-up processes, or misaligned targeting, signaling the need for closer collaboration between sales and marketing.

14. Average Cost Per Lead

This metric evaluates the efficiency of lead-generation campaigns by calculating the cost to acquire each lead.

For instance, if a B2B marketing campaign costs $50,000 and generates 500 leads, the average cost per lead is $100.

Calculation Formula:

Total Campaign Cost/Number of Leads Generated

High costs might indicate inefficiencies or underperforming campaigns, prompting adjustments in channel strategy or creative approaches.

15. Retention and Churn Rates

Retention rate reflects the percentage of clients who continue their contracts, while churn rate shows the percentage who leave. Together, they provide a holistic view of client satisfaction and loyalty.

For example, if a B2B IT services company starts the month with 100 clients, gains 10, and loses 5, the retention rate is 95% and the churn rate is 5%.

Calculation Formula:

(Ending Clients−New Clients)/Starting Clients)×100

Churn Rate (%)=(Clients Lost/Starting Clients)×100

Improving retention is critical, as retaining clients is often more cost-effective than acquiring new ones.

16. Customer Lifetime Value (CLV)

CLV calculates the total revenue a business expects to earn from a client over their lifetime. It helps assess the profitability of customer relationships and inform resource allocation for acquisition and retention strategies.

For instance, if a client spends $20,000 annually with a gross margin of 50% and remains for 5 years, the CLV is $50,000.

Calculation Formula:

Gross Margin (%)×Retention Rate×Average Revenue Per Customer

Higher CLV indicates long-term, profitable relationships, while low CLV might suggest churn or low-margin clients.

17. Average Conversion Time

This KPI measures the time taken to convert leads into customers, highlighting the efficiency of the sales funnel.

For example, if a consulting firm converts 50 leads over 1,000 days, the average conversion time is 20 days.

Calculation Formula:

Total Time to Convert Leads/Number of Deals Closed

Shorter conversion times reflect efficient sales processes, while prolonged times could indicate issues with lead qualification or the sales pitch.

18. New and Expansion Monthly Recurring Revenue (MRR)

New MRR tracks revenue from new customers, while expansion MRR measures increased revenue from existing clients. These metrics are critical for subscription-based B2B businesses, such as SaaS companies, to evaluate growth.

For example, if a SaaS firm adds $50,000 in revenue from new clients and $20,000 from upgrades, the combined MRR is $70,000.

Calculation Formula:

(Revenue from New and Expanded Accounts/Total Accounts)×Total Accounts That Month

A decline in MRR might suggest stagnating growth or higher churn.

19. Customer Acquisition Cost (CAC)

CAC measures how much it costs to acquire a new client, factoring in all sales and marketing expenses.

For instance, if a B2B company spends $100,000 on marketing and sales to acquire 50 clients, the CAC is $2,000.

Calculation Formula:

Total Sales and Marketing Cost/Number of New Customers

Lowering CAC while increasing revenue per client enhances profitability and sustainability.

How to Choose the Right Sales KPIs?

Not all KPIs are created equal. What’s critical for one business might not matter much for another. The best way to ensure your KPIs are effective is by following the SMART criteria: Specific, Measurable, Achievable, Relevant, and Time-bound. Start by defining clear, precise goals that focus on measurable outcomes, such as "Increase lead-to-sale conversion rates by 20% in Q1," rather than vague objectives like "improve sales." Ensure the targets are ambitious yet achievable by analyzing historical data and current resources to avoid setting unrealistic expectations. Relevance is key—choose KPIs that directly impact your business objectives, such as focusing on customer retention metrics like churn rate if your goal is loyalty, or tracking new customer acquisition if you’re aiming for market growth.

Additionally, set clear timeframes, such as “Close $500,000 in sales within six months,” to maintain urgency and monitor progress effectively. It’s also essential to assess your sales funnel, balancing leading indicators like qualified leads generated with lagging ones like revenue growth, while considering your industry needs—for instance, SaaS companies may prioritize monthly recurring revenue (MRR) and retention rates, whereas distributors might focus on territory sales volume. By using this structured approach, you ensure your KPIs not only track performance but drive meaningful action and align with your business strategy.

Drive Sales Performance with SalesHero

Other than tracking sales KPIs to boost sales, using automation tools is equally important. SalesHero is a cloud-based mobile sales app designed to simplify and automate B2B sales workflows effortlessly.