Top Output, Directional, Practical & Outcome KPIs For Sales

Last Set of KPIs for Sales!

Today we will discuss some more KPIs (Output, Directional, Practical & Outcome indicators) for sales professionals. Hope you enjoyed learning Qualitative & Other KPIs earlier.

Top Output KPIs or Indicators for Sales

1. Sales Per Rep

Sales per Rep is a metric that measures the amount of revenue generated by each sales representative in a company. It is calculated by dividing the total sales revenue by the number of sales representatives.

The sales per rep metric is an important indicator of a company’s sales performance. It can provide insights into the effectiveness of its sales team. A high sales per rep figure indicates that each sales representative is generating a significant amount of revenue. That figure is a positive sign for the company’s financial health.

On the other hand, a low sales per rep figure could indicate that the company needs to improve its sales strategy. The company needs to provide better training to its sales representatives or hire more effective salespeople.

Use case

To increase sales per rep, companies can take a number of steps. One strategy is to provide ongoing training and support to sales representatives. Such training can help them to improve their skills and stay up-to-date with the latest sales techniques. Another approach is to incentivize sales representatives with bonuses or other rewards based on their performance.

Ultimately, sales per rep is a key metric that can help companies evaluate and optimize their sales performance.

Companies can increase their revenue and achieve long-term success in the marketplace. But how?

By understanding the factors that contribute to the metric (Sales per rep) and taking steps to improve it.

How to measure?  

Total sales/number of sales made by rep

Top Directional KPIs or Indicators for Sales

1. Sales Target Attainment

Sales professionals set sales goals within a given period. This is a crucial metric for businesses to track, as it allows them to assess the performance of their sales team and determine areas for improvement.

Sales target attainment can be measured in various ways, such as the percentage of sales targets achieved, the total revenue generated, or the number of deals closed. Businesses often set sales targets based on historical data, market trends, and revenue goals, and use them as benchmarks for performance evaluation.

Use case

Attaining sales targets is important not only for financial success but also for motivation and morale within the sales team. Consistently achieving sales targets can boost confidence and job satisfaction, leading to increased productivity and higher job retention rates.

On the other hand, consistently missing sales targets can lead to frustration and low morale. It can also indicate issues with the sales strategy, product or service offerings, or market conditions that need to be addressed.

To improve sales target attainment, businesses can provide additional training and resources to their sales team. They should adjust sales targets based on market conditions, or implement new sales strategies.

Ultimately, sales target attainment is a critical factor in the success of any business. This should be a key area of focus for sales teams and business leaders alike.

How to measure?  

(Sales for the current period/sales target) x 100

Top Practical KPIs or Indicators for Sales

1. Referrals

Referrals are a great way to grow your business. The referral KPI is a metric that measures how many new customers you’re getting through word of mouth. If you’re not tracking your referral KPI, you’re missing out on a lot of potential business!

Use case

According to a study by Nielsen, 92% of consumers trust referrals from people they know. That’s a lot of trust!

And if you’re not getting referrals, it could mean one of two things: either your customers don’t trust you enough to recommend you, or you’re not giving them a reason to.

So, how do you improve your referral KPI? Well, you could start by offering incentives for referrals. Maybe give your customers a discount or a freebie for every new customer they refer. Or, you could simply focus on providing great customer service and an awesome product or service. If you do that, your customers will be more likely to spread the word about you.

Top Outcome KPIs or Indicators for Sales

1. New and Expansion Monthly Recurring Revenue (MRR)

Monthly Recurring Revenue (MRR) is a critical metric for SaaS companies. This reflects the amount of predictable revenue generated from subscription-based services. There are two types of MRR: new MRR and expansion MRR.

The new MRR refers to the revenue generated from new customers who have subscribed to the service during a given period. Expansion MRR refers to the revenue generated from existing customers. These existing customers have either upgraded or added additional subscriptions during the same period. 

Use case

New MRR is essential. This shows the company’s ability to attract new customers. Whereas, expansion MRR indicates the company’s ability to retain existing customers and provide them with more value. Both types of MRR contribute to the overall growth of the business and are important metrics to track.

To maximize MRR growth, SaaS companies should focus on improving customer acquisition and retention strategies. They should also focus on providing valuable upgrades and add-ons to existing customers. By optimizing these factors, companies can increase both new and expansion MRR, leading to sustained revenue growth over time.

How to measure?  

(Average monthly revenue from total new and expanded accounts / total number of accounts) x total number of accounts that month

These were some of the KPIs for Sales. Hope you had not missed Financial KPIs for Sales.

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