Top Qualitative, Lagging & Leading KPIs For Sales Department

Time to Understand More KPIs for Sales!

In another blog, we discussed the Quantitative, Process, and Financial KPIs for the Sales Department. In this blog, we will discuss Qualitative, Lagging, and Leading KIs. 

Top Qualitative KPIs or Indicators 

1. Product Performance

Product performance KPIs are no laughing matter… or are they? With the right perspective and a bit of humour, they can be! Product performance KPIs are a set of metrics used to evaluate how well a product is performing in the market. These metrics can include sales figures, customer satisfaction ratings, and return rates.

Let’s take sales figures, for example.

As the saying goes, “money talks” and this is especially true when it comes to product performance. A high sales figure is a good indicator that the product is meeting a need in the market and is appealing to customers. But, as we all know, numbers can be deceiving. Just because a product is selling well doesn’t mean it’s necessarily a good product.

Use case

Product Performance KPIs are a crucial part of measuring the success of your business. Monitoring product performance can help you identify which products are popular, which ones are struggling, and where improvements can be made. It’s like having a GPS for your business – you need to know where you are and where you’re going.

2. Sales by Contact Method

Sales by contact method refers to the way sales representatives or agents interact with customers or prospects to sell products or services. There are various contact methods that sales teams can use, including phone calls, emails, social media, in-person meetings, and more. Understanding the effectiveness of each method can help businesses optimize their sales process and improve their bottom line.

Phone calls remain one of the most popular contact methods for sales, with many sales teams making hundreds or even thousands of calls per day. However, with the rise of digital communication, email has become another popular contact method for sales teams. Email campaigns can be used to reach a large number of prospects at once, and can be automated for greater efficiency.

Use case

 Social media has also emerged as a key contact method for sales, with many businesses using platforms like LinkedIn and Twitter to connect with potential customers and build relationships. In-person meetings, while less common in the age of remote work, can still be an effective way to build trust and close deals.

Ultimately, the effectiveness of each contact method will depend on a variety of factors, including the industry, product or service being sold, and the preferences of the target audience. By tracking sales by contact method and analyzing the data, businesses can identify which methods are most effective for their particular sales strategy and adjust accordingly.

How to measure?

(Sales per contact method / total revenue) x 100

Top Lagging KPIs or  Indicators

 1. Churn Rate

Oh, churn rate, the number that every salesperson loves to hate. It’s like that annoying friend who always wants to hang out but never buys you a drink. Churn rate measures the percentage of customers who say “adios” and never come back, leaving you feeling rejected and wondering what you did wrong. It’s like a bad breakup, but instead of tears and ice cream, you’re left with a dwindling customer base and a boss breathing down your neck. So, let’s raise a glass to churn rate, the KPI that keeps us on our toes and reminds us that not everyone wants to be our customer forever. Cheers to rejection!

Use case

It’s the metric that companies use to track the rate at which customers are abandoning ship. But let’s not get too down about it – this KPI is actually pretty fun!

How to measure?

Take the number of customers that you lost last quarter and divide that by the number of customers that you started with last quarter.

Average Conversion Time

Average Conversion Time is the amount of time it takes for a potential customer to go from browsing your website to actually completing a desired action, such as making a purchase or signing up for a newsletter. It’s an important metric for businesses to keep track of because, let’s be honest, nobody likes to wait around forever for something to happen.

 Use case

Average Conversion Time is a metric that measures the amount of time it takes for a prospect to become a customer. But in all seriousness, Average Conversion Time is a valuable KPI for marketers.  

How to measure?

The total number of days between the first touch point in a conversion path and the conversion that happened divided by the total conversions.

Top Leading KPIs or Indicators 

Monthly Sales Growth

Monthly Sales Growth KPI is basically a fancy way of saying “how much money we’re making this month compared to last month.” It’s like stepping on a scale and checking how much weight you’ve gained (or lost, if you’re lucky). With the right strategy and a little bit of luck, you can turn that monthly sales growth KPI into your best friend.

Just remember always to keep your customers happy, your products top-notch, and your sense of humor intact (especially when the boss starts getting on your case).

Use case

 Monthly Sales Growth KPI. It’s the metric that can make or break a company’s bottom line. Monthly Sales Growth KPI is like a rollercoaster ride in the world of business. One month you’re flying high with skyrocketing sales, and the next month you’re plummeting down to earth like a lead balloon. It’s like trying to predict the weather – one minute it’s sunny and the next it’s pouring rain.

How to measure?

Subtract the first month from the second month and then divide that by the last month’s total. Multiply the result by 100.

Now, you should also check some other KPIs or Indicators for Sales Department. We have covered them (Output, Directional, Practical, and Outcome) in our next blog.

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