{"id":50976,"date":"2022-02-16T09:53:02","date_gmt":"2022-02-16T17:53:02","guid":{"rendered":"https:\/\/newrcblog.wpengine.com\/us\/en\/blog\/?p=50976"},"modified":"2025-03-13T07:22:36","modified_gmt":"2025-03-13T14:22:36","slug":"sales-metrics-small-business","status":"publish","type":"post","link":"\/us\/en\/blog\/sales-metrics-small-business\/","title":{"rendered":"Sales metrics for small businesses: What to track &#038; why"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">If you&#8217;ve been in business for even a little while, you likely track some sales metrics already. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">But are you tracking the\u00a0<em>right<\/em> metrics? And how can you use this information to close even more deals?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The key is to identify the sales metrics that matter most and focus on the insights you can find by tracking them. <\/span><span style=\"font-weight: 400;\">Sales metrics<\/span><span style=\"font-weight: 400;\"> illuminate your sales activity and can be used to evaluate the effectiveness of your <\/span><a href=\"https:\/\/newrcblog.wpengine.com\/us\/en\/blog\/sales-process\/\"><span style=\"font-weight: 400;\">sales process<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p>In this guide, we&#8217;ll cover:<\/p>\n<ul>\n<li><a href=\"#one\">What sales metrics are<\/a><\/li>\n<li><a href=\"#two\">How sales analytics can improve performance<\/a><\/li>\n<li><a href=\"#three\">5 major types of sales metrics\u00a0<\/a><\/li>\n<li><a href=\"#four\">How to determine the right sales metrics to track<\/a><\/li>\n<li><a href=\"#six\">Helpful sales metrics hack: Integrate your CRM with your business phone\u00a0<\/a><\/li>\n<li><a href=\"#five\">Challenges of tracking sales metrics and analytics<\/a><\/li>\n<\/ul>\n<hr \/>\n<p class=\"p1\">\u260e\ufe0f Close more deals with these <strong>free cold outreach scripts.\u00a0<\/strong><\/p>\n<p class=\"p1\">\n<div class=\"download-form-widget standart-download-form\" data-url=\"http:\/\/netstorage.ringcentral.com\/ebook\/cold_calling_scripts_playbook.pdf\" data-id=\"69d4a428a9eab\" id=\"69d4a428a9eab\">\n\t\t<button tabindex=\"on\"  on=\"tap:69d4a428a9eab.toggleClass(class='open')\" class=\"open-modal-download-action download-form-button\" type=\"submit\">\ud83d\ude80 Get them now<\/button><\/p>\n<div class=\"download-form-modal\">\n<div class=\"download-form-modal-body\">\n<div class=\"download-form-modal-content\">\n<form class=\"download-form SMB\" method=\"post\">\n<div class=\"download-form-part\">\n\t\t\t\t\t\t\t<input class=\"download-form-input\" aria-label=\"Full Name\" aria-required=\"true\" aria-invalid=\"false\" type=\"text\" name=\"fullname\" placeholder=\"Full Name\" data-dl-events-hover=\"true\" data-dl-element=\"text\" data-dl-additional-info=\"download form\">\n\t\t\t\t\t\t<\/div>\n<div class=\"download-form-part\">\n\t\t\t\t\t\t\t<input class=\"download-form-input\" aria-label=\"Email (please enter a work email address)\" aria-required=\"true\" aria-invalid=\"false\" type=\"email\" autocomplete=\"on\" name=\"email\" placeholder=\"Email (please enter a work email address)\" data-dl-events-hover=\"true\" data-dl-element=\"email\" data-dl-additional-info=\"download form\">\n\t\t\t\t\t\t<\/div>\n<div>\n\t\t\t\t\t\t\t<input type=\"hidden\" name=\"popup_form\" value=\"1\">\n\t\t\t\t\t\t<\/div>\n<div><input type=\"hidden\" name=\"Asset_ID__c\" value=\"ODAM-01477\" class=\"download-form-input\"><\/div>\n<div>\n\t\t\t\t\t\t\t<input type=\"hidden\" name=\"Lead_Entry_Source__c\" value=\"RC Blog\" class=\"download-form-input\"\/>\n\t\t\t\t\t\t<\/div>\n<div class=\"download-form-part\">\n\t\t\t\t\t\t\t<button class=\"download-form-submit\" type=\"submit\" data-dl-element=\"button\" data-no-auto-dl=\"true\" data-dl-additional-info=\"download form\" data-dl-name=\"Get it now\">Get it now<\/button>\n\t\t\t\t\t\t<\/div>\n<\/p><\/form>\n<p> \t\t\t\t\t<button on=\"tap:69d4a428a9eab.toggleClass(class='open')\" role=\"button\" tabindex=\"0\"  class=\"download-form-modal-close\"><\/button>\n\t\t\t\t<\/div>\n<div class=\"download-form-modal-thank\">Happy selling!<\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p>\n<hr \/>\n<h2 class=\"heading h2\"><span style=\"font-weight: 400;\"><a id=\"one\"><\/a>What are <\/span><span style=\"font-weight: 400;\">sales metrics<\/span><span style=\"font-weight: 400;\">?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Sales metrics<\/span><span style=\"font-weight: 400;\"> are data points that can help you evaluate whether your <\/span><span style=\"font-weight: 400;\">sales process<\/span><span style=\"font-weight: 400;\"> is working. <\/span><span style=\"font-weight: 400;\">Sales performance metrics<\/span><span style=\"font-weight: 400;\"> are generally used to make sales teams more effective and improve the <\/span><span style=\"font-weight: 400;\">conversion rate<\/span><span style=\"font-weight: 400;\"> of leads into sales.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Other types of <\/span><span style=\"font-weight: 400;\">sales metrics<\/span><span style=\"font-weight: 400;\"> can also help you achieve these goals: pipeline metrics, activity <\/span><span style=\"font-weight: 400;\">sales metrics<\/span><span style=\"font-weight: 400;\">, <a href=\"https:\/\/www.cience.com\/blog\/sales-lead-generation-process\">lead generation <\/a><\/span><span style=\"font-weight: 400;\">sales metrics<\/span><span style=\"font-weight: 400;\">, and <\/span><span style=\"font-weight: 400;\">key performance indicators<\/span><span style=\"font-weight: 400;\"> (KPIs).\u00a0<\/span><\/p>\n<h2 class=\"heading h2\"><span style=\"font-weight: 400;\"><a id=\"two\"><\/a>How do sales analytics improve performance?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Trouble spots for sales teams are often revealed by a careful look at sales metrics. For example, your pipeline metrics may reveal that your <\/span><a href=\"https:\/\/newrcblog.wpengine.com\/us\/en\/blog\/sales-funnel\/\"><span style=\"font-weight: 400;\">sales funnel<\/span><\/a><span style=\"font-weight: 400;\"> is full of unqualified opportunities, or that there aren&#8217;t enough prospects in your pipeline. Your activity <\/span><span style=\"font-weight: 400;\">sales metrics<\/span><span style=\"font-weight: 400;\"> may show a lack of activities such as phone calls and emails throughout the process. These problems may indicate that your <\/span><span style=\"font-weight: 400;\">sales team<\/span><span style=\"font-weight: 400;\"> is stuck.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Using the right sales analytics tools helps organizations find and correct problem areas in <\/span><span style=\"font-weight: 400;\">sales activities<\/span><span style=\"font-weight: 400;\">. Look for an analytics tool that provides <\/span><span style=\"font-weight: 400;\">real-time<\/span><span style=\"font-weight: 400;\"> data about your <\/span><span style=\"font-weight: 400;\">sales reps\u2019 <\/span><span style=\"font-weight: 400;\">activities at every stage of the <\/span><span style=\"font-weight: 400;\">sales process<\/span><span style=\"font-weight: 400;\">. Leverage sales analytics data to find out where your<\/span><span style=\"font-weight: 400;\"> sales team<\/span><span style=\"font-weight: 400;\"> is having problems, so you can fix them and generate better business results.<\/span><\/p>\n<div class=\"rc-subscribe\" id=\"new-rc-subscribe\"  style=\"background-image:url('\/us\/en\/blog\/wp-content\/themes\/ringcentral\/assets\/images\/temp\/subscribe.png')\">\n\t\t<button class=\"close js-popup-close\"><svg class=\"icon_close_mobile\" width=\"20\" height=\"20\"><use xlink:href=\"#icon_close_mobile\"><\/use><\/svg><\/button><\/p>\n<div class=\"rc-subscribe__wrapper\">\n<div class=\"rc-subscribe__wrapper_text\">\n<h3 class=\"rc-subscribe__title h2\">Stay informed with RingCentral<\/h3>\n<div class=\"rc-subscribe__subtitle\">Subscribe to our emails for the latest blogs, events, and exclusive content on AI-powered communication solutions. Stay ahead with insights and tips from the leader in trusted AI communications.<\/p>\n<p>\t\t\t\t\t<a href=\"https:\/\/www.ringcentral.com\/legal\/privacy-notice.html\" target=\"_blank\" data-dl-name=\"Privacy Notic\" data-dl-element=\"link\" data-dl-additional-info=\"social\" rel=\"noreferrer noopener\">Privacy Notice<\/a>\n\t\t\t\t<\/div>\n<\/p><\/div>\n<div class=\"rc-subscribe__wrapper_form\">\n<form class=\"\" data-event-init=\"true\" novalidate data-js-form>\n<div class=\"rc-subscribe__row\">\n\t\t\t\t\t\t<input\n\t\t\t\t\t\t\t\tname=\"email\"\n\t\t\t\t\t\t\t\tplaceholder=\"Email address *\"\n\t\t\t\t\t\t\t\ttitle=\"Must be valid email. example@yourdomain.com\"\n\t\t\t\t\t\t\t\tminlength=\"4\"\n\t\t\t\t\t\t\t\tmaxlength=\"255\"\n\t\t\t\t\t\t\t\ttype=\"email\"\n\t\t\t\t\t\t\t\trequired\n\t\t\t\t\t\t\t\tpattern=\"[a-z0-9._%+\\-]+@[a-z0-9.\\-]+\\.[a-z]{2,}$\"\n\t\t\t\t\t\t\t\tclass=\"field__control\"\n\t\t\t\t\t\t\t\tautocomplete=\"on\"\n\t\t\t\t\t\t\t\taria-required=\"true\"\n\t\t\t\t\t\t\t\tdata-dl-events-hover=\"true\"\n\t\t\t\t\t\t\t\tdata-dl-element=\"email\"\n\t\t\t\t\t\t\t\tdata-dl-additional-info=\"LET'S WORK TOGETHER\"\n\t\t\t\t\t\t\t\taria-label=\"Email address *\"\n\t\t\t\t\t\t\t\taria-errormessage=\"email-subscribe-errors\"\n\t\t\t\t\t\t><br \/>\n\t\t\t\t\t\t<span class=\"field__errors\" id=\"email-subscribe-errors\" data-js-form-field-errors><\/span>\n\t\t\t\t\t<\/div>\n<div class=\"rc-subscribe__row\">\n\t\t\t\t\t\t<select\n\t\t\t\t\t\t\t\tname=\"Country__c\"\n\t\t\t\t\t\t\t\trequired\n\t\t\t\t\t\t\t\tclass=\"field__control\"\n\t\t\t\t\t\t\t\taria-required=\"true\"\n\t\t\t\t\t\t\t\taria-expanded=\"false\"\n\t\t\t\t\t\t\t\taria-label=\"Country *\"\n\t\t\t\t\t\t\t\taria-errormessage=\"country-subscribe-errors\"\n\t\t\t\t\t\t><option value=\"\" disabled=\"disabled\" selected=\"selected\">Country<\/option><option value=\"Canada\">Canada<\/option><option value=\"United_States\">United States<\/option><\/select><\/p>\n<p>\t\t\t\t\t\t<span class=\"field__errors\" id=\"country-subscribe-errors\" data-js-form-field-errors><\/span>\n\t\t\t\t\t<\/div>\n<div class=\"rc-subscribe__row\">\n\t\t\t\t\t\t<button type=\"submit\" data-event-init=\"true\">Subscribe<\/button>\n\t\t\t\t\t<\/div>\n<\/p><\/form>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"confirm-form\" role=\"status\" aria-live=\"polite\" style=\"display: none;\" aria-hidden=\"true\">\n<div class=\"confirm-form__text\">Thank you for your interest in RingCentral<\/div>\n<\/p><\/div>\n<\/p><\/div>\n<h2 class=\"heading h2\"><a id=\"three\"><\/a>5 major types of sales metrics<\/h2>\n<p><span style=\"font-weight: 400;\">There are many types of <\/span><span style=\"font-weight: 400;\">sales metrics<\/span><span style=\"font-weight: 400;\">, including:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Pipeline metrics<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Activity <\/span><span style=\"font-weight: 400;\">sales metrics<\/span><\/li>\n<li aria-level=\"1\">Conversion metrics<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Lead generation <\/span><span style=\"font-weight: 400;\">sales metrics<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">KPIs<\/span><\/li>\n<\/ol>\n<p>Let&#8217;s look a little more closely at each of these categories.<\/p>\n<h3><span style=\"font-weight: 400;\">1. <a href=\"https:\/\/newrcblog.wpengine.com\/us\/en\/blog\/sales-pipeline\/\">Sales pipeline<\/a> metrics<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Pipeline metrics, also known as <\/span><span style=\"font-weight: 400;\">sales funnel<\/span><span style=\"font-weight: 400;\"> metrics, show how many people are moving through your <\/span><span style=\"font-weight: 400;\">sales process<\/span><span style=\"font-weight: 400;\">. Pipeline metrics include <a href=\"https:\/\/mailcon.com\/tips-and-tricks-to-increase-your-open-rate\/\">open rates<\/a>, close rates, win rates, average deal size, opportunity to <\/span><span style=\"font-weight: 400;\">win rate<\/span><span style=\"font-weight: 400;\">, and deal close rates.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Average length of <\/b><b>sales cycle<\/b><b>: <\/b><span style=\"font-weight: 400;\">An estimate of how long it takes, on average, to go from initial contact to purchase or sale.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Total open opportunities: <\/b><span style=\"font-weight: 400;\">The number of opportunities in your <\/span><span style=\"font-weight: 400;\">sales pipeline<\/span><span style=\"font-weight: 400;\"> which have not been converted into a sale. This is counted from the date that the opportunity was created, not the date that it was last updated.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Opportunity <\/b><b>close rate<\/b><b>:<\/b><span style=\"font-weight: 400;\"> The percentage of opportunities that are closed into deals. It is calculated by taking the number of closed opportunities and dividing it by the <\/span><span style=\"font-weight: 400;\">total number<\/span><span style=\"font-weight: 400;\"> of opportunities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Closed opportunity <\/b><b>win rate<\/b><b>:<\/b><span style=\"font-weight: 400;\"> The percentage of closed opportunities won by your company. It is calculated by taking the number of closed opportunities that were won and dividing it by the <\/span><span style=\"font-weight: 400;\">total number<\/span><span style=\"font-weight: 400;\"> of opportunities that were closed.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Weighted value of pipeline:<\/b><span style=\"font-weight: 400;\"> The worth of your <\/span><span style=\"font-weight: 400;\">sales pipeline<\/span><span style=\"font-weight: 400;\"> measured by multiplying the opportunity amount by the probability of a close.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Total value<\/b><b> of sales:<\/b><span style=\"font-weight: 400;\"> How much your <\/span><span style=\"font-weight: 400;\">sales team<\/span><span style=\"font-weight: 400;\"> has sold in total.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Annual contract value:<\/b><span style=\"font-weight: 400;\"> How much revenue was booked from the total amount of <\/span><span style=\"font-weight: 400;\">closed deals<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Open rates: <\/b><span style=\"font-weight: 400;\">The percentage of leads that have opened email offers you sent them<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Close rates:<\/b><span style=\"font-weight: 400;\"> The percentage of leads that have been closed<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Win rates:<\/b><span style=\"font-weight: 400;\"> The percentage of leads that have been won<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Average deal size:<\/b><span style=\"font-weight: 400;\"> The average amount of money generated from a single client or customer<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Opportunity-to-<\/b><b>win rate<\/b><b>:<\/b><span style=\"font-weight: 400;\"> The percentage of leads that are likely to turn into real business<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Deal close rates:<\/b><span style=\"font-weight: 400;\"> The <\/span><span style=\"font-weight: 400;\">number of deals<\/span><span style=\"font-weight: 400;\"> closed divided by the <\/span><span style=\"font-weight: 400;\">total number of deals<\/span><span style=\"font-weight: 400;\"> at any given time<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">2. Sales team activity<\/span><span style=\"font-weight: 400;\">\u00a0metrics<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Activity <\/span><span style=\"font-weight: 400;\">sales metrics<\/span><span style=\"font-weight: 400;\"> measure the performance and behaviors of your sales team. Some important sales activity metrics to track include:<\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Calls made:<\/b><span style=\"font-weight: 400;\"> The number of phone calls made<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Meetings booked:<\/b><span style=\"font-weight: 400;\"> The number of meetings scheduled<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Events attended:<\/b><span style=\"font-weight: 400;\"> The number of events you&#8217;ve attended related to your core product<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Leads created:<\/b><span style=\"font-weight: 400;\"> The number of leads generated by sales activities<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Social media connections:<\/b><span style=\"font-weight: 400;\"> The number of social media connections your individual salespeople have<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Calls to meeting ratio: <\/b><span style=\"font-weight: 400;\">The percentage of calls that lead to booking a meeting<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Demos or pitch presentations:<\/b><span style=\"font-weight: 400;\"> The number of demos requested or pitches presented<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Proposals: <\/b><span style=\"font-weight: 400;\">The number of proposals sent<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Upsells and cross-sells:<\/b><span style=\"font-weight: 400;\"> The number of upsells or cross-sells completed<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Time spent on <\/b><b>data entry<\/b><b>: <\/b><span style=\"font-weight: 400;\">The percentage of time your sales team spends on data entry vs. engagement-specific activities<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\"><\/p>\n<div class=\"rc-post-content-cta rc-post-content-cta_green\">\n<div class=\"rc-post-content-cta-columns\">\n<div class=\"bottom-cta-img\">\n\t\t\t\t<img decoding=\"async\" width=\"930\" height=\"700\" src=\"\/us\/en\/blog\/wp-content\/uploads\/2022\/01\/Mitel.jpg\" class=\"responsive-image\" alt=\"\" \/>\t\t\t<\/div>\n<div class=\"bottom-cta-copy\">\n<div class=\"headline-copy\" style=\"text-align:left;\"> Sales automation: A guide for small businesses <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"rc-post-content-cta-footer\">\n<div class=\"bottom-cta-logo-container\">\n<div class=\"bottom-cta-logo\"><span aria-hidden=\"true\"><svg width=\"154\" height=\"34\" viewBox=\"0 0 154 34\" fill=\"#000\" role=\"img\" aria-labelledby=\"cta-ring-logo-481404050\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n\t\t\t\t\t\t\t<title id=\"cta-ring-logo-481404050\">Ring Central Logo<\/title>\t\n\t\t\t\t\t\t\t<path d=\"M154 3.89618H150.386V26.9657H154V3.89618Z\" \/>\n\t\t\t\t\t\t\t<path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M141.313 11.6299C137.976 11.6299 135.388 13.2501 134.95 16.5546H138.504C138.754 15.3082 139.675 14.5591 141.313 14.5591C143.214 14.5591 144.086 15.6499 144.086 17.3647V18.1444H140.438C137.078 18.1444 134.593 19.6411 134.593 22.697C134.593 25.7529 136.619 27.3411 139.55 27.3411C141.826 27.3411 143.323 26.3721 144.133 24.8145H144.288V26.9529H147.716V17.4802C147.702 13.8276 145.833 11.6299 141.313 11.6299ZM140.58 24.5675C139.177 24.5675 138.303 23.8809 138.303 22.7339C138.303 21.4233 139.238 20.7383 140.921 20.7383H144.069L144.086 20.9549C144.088 23.2232 142.777 24.5675 140.58 24.5675Z\" \/>\n\t\t\t\t\t\t\t<path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M128.187 26.9657V19.2047C128.187 16.8979 129.623 15.4317 131.896 15.4317H133.321V12.0036H131.854C130.14 12.0036 128.893 12.6581 128.114 14.1243H127.988V12.0036H124.591V26.9753L128.187 26.9657Z\" \/>\n\t\t\t\t\t\t\t<path 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2.12196L16.332 3.81756C16.7764 3.37 17.3041 3.01548 17.8865 2.77325C18.4688 2.53102 19.0928 2.40429 19.7232 2.40269C20.3537 2.40108 20.9777 2.523 21.5616 2.76362C22.1439 3.00264 22.6749 3.35556 23.1225 3.79991L24.8181 2.10431C23.8106 1.1001 22.5289 0.415123 21.1333 0.139206C19.7377 -0.139919 18.2907 0.00285184 16.9769 0.548269Z\" \/>\n\t\t\t\t\t\t<\/svg><\/span><\/div>\n<\/p><\/div>\n<div class=\"bottom-cta-link\">\n\t\t\t\t<a href=\"https:\/\/www.ringcentral.com\/us\/en\/blog\/sales-automation-small-business\/\" class=\"view-all view-all-white \" data-dl-name=\"Read the blog\" data-dl-element=\"button\" data-dl-additional-info=\"bottom cta banner\" data-no-auto-dl=\"true\">Read the blog<span class=\"svg-icon\" aria-hidden=\"true\"><svg width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" fill=\"#000\" role=\"img\" aria-labelledby=\"cta-ring-arrow-481404050\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n\t\t\t\t\t<title id=\"cta-ring-arrow-481404050\">Ring Central Logo<\/title>\t\n\t\t\t\t\t<path d=\"M0 11.5C0 11.2239 0.223858 11 0.5 11H21.6797C21.9559 11 22.1797 11.2239 22.1797 11.5V12.5C22.1797 12.7761 21.9559 13 21.6797 13H0.5C0.223858 13 0 12.7761 0 12.5V11.5Z\" ><\/path>\n\t\t\t\t\t<path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M21.1718 12.0001L15.8086 6.63691C15.6134 6.44165 15.6134 6.12506 15.8086 5.9298L16.5157 5.22269C16.711 5.02743 17.0276 5.02743 17.2228 5.22269L23.6467 11.6465C23.8419 11.8418 23.8419 12.1584 23.6467 12.3536L17.2228 18.7775C17.0276 18.9727 16.711 18.9727 16.5157 18.7775L15.8086 18.0704C15.6134 17.8751 15.6134 17.5585 15.8086 17.3633L21.1718 12.0001Z\" ><\/path>\n\t\t\t\t<\/svg><\/span><\/a>\n\t\t\t<\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>\t<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">3. Customer conversion metrics<\/span><\/h3>\n<p>Conversion metrics track how quickly and efficiently you close deals. Here are some examples:<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Revenue:<\/b><span style=\"font-weight: 400;\"> The amount of money made from a single deal or customer<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Average revenue per order:<\/b><span style=\"font-weight: 400;\"> The average amount of money generated from an individual purchase<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Average number of orders per month:<\/b><span style=\"font-weight: 400;\"> The approximate number of purchases made in a month<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Customer acquisition cost (CAC): <\/b><span style=\"font-weight: 400;\">The average amount spent for each new customer<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Customer lifetime value<\/b><b> (CLV): <\/b><span style=\"font-weight: 400;\">The revenue generated from a single customer over their entire relationship with your company<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Customer attrition rate:<\/b><span style=\"font-weight: 400;\"> The percentage of customers lost in a given time period<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cost-to-serve: <\/b><span style=\"font-weight: 400;\">The cost of providing service to a customer or client<\/span><\/li>\n<\/ul>\n<h3 class=\"heading h4 h3\"><span style=\"font-weight: 400;\">4. Lead generation <\/span><span style=\"font-weight: 400;\">metrics<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Marketing goes hand-in-hand with sales to close deals. Analyzing your lead-generation process <\/span><span style=\"font-weight: 400;\">helps track how well your marketing strategies are working. There are lots of potential lead generation metrics to track, including:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Form completions:<\/b><span style=\"font-weight: 400;\"> The number of times your contact forms have been completed. This is only tracked if your contact form is on a landing page.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Contact requests:<\/b><span style=\"font-weight: 400;\"> The number of times you&#8217;ve received a web form submission requesting more information<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Contacts added to a list: <\/b><span style=\"font-weight: 400;\">The number of people your marketing team adds to a mailing list from events, trade shows, etc.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Lead qualification:<\/b><span style=\"font-weight: 400;\"> The number of leads that were qualified by sales<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Opportunity creations:<\/b><span style=\"font-weight: 400;\"> The number of new <\/span><span style=\"font-weight: 400;\">sales opportunities<\/span><span style=\"font-weight: 400;\"> created in your <\/span><span style=\"font-weight: 400;\">CRM<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Opportunities progressed to sales-ready:<\/b><span style=\"font-weight: 400;\"> The number of <\/span><span style=\"font-weight: 400;\">sales opportunities <\/span><span style=\"font-weight: 400;\">that are marked as being sales-ready in your <\/span><span style=\"font-weight: 400;\">CRM<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Frequency of new opportunities: <\/b><span style=\"font-weight: 400;\">The number of new opportunities opened every month<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Opportunity win rates:<\/b><span style=\"font-weight: 400;\"> The percentage of opportunities that turn into deals won by your company<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Lead-to-opportunity win rates:<\/b><span style=\"font-weight: 400;\"> The percentage of leads that turn into opportunities won by your company<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Opportunity close rates:<\/b><span style=\"font-weight: 400;\"> The percentage of opportunities that turn into deals closed by your company<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Opportunity loss rates: <\/b><span style=\"font-weight: 400;\">The percentage of opportunities that were lost by your company<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Marketing qualified leads (MQL) to sales-ready qualified (SQL) rates:<\/b><span style=\"font-weight: 400;\"> The percentage of marketing qualified leads that become sales-ready leads in a given time period<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Opportunity-to-SQL rate:<\/b><span style=\"font-weight: 400;\"> The percentage of opportunities that become sales-qualified leads in a given time period<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>SQL close rates:<\/b><span style=\"font-weight: 400;\"> The percentage of SQLs (sales-ready leads) closed by your team<\/span><\/li>\n<\/ul>\n<h3 class=\"heading h3\"><span style=\"font-weight: 400;\">5. <a href=\"https:\/\/newrcblog.wpengine.com\/us\/en\/blog\/sales-kpis\/\">Sales KPIs<\/a><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A key performance indicator (KPI) is a measurement that helps you determine whether your sales team&#8217;s performance meets the standard set by your organization. It is a number that you use to measure the effectiveness of your team.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">KPIs are different from other types of <\/span><span style=\"font-weight: 400;\">sales metrics<\/span><span style=\"font-weight: 400;\"> because they go beyond simple numerical values. They also include qualitative measurements, such as how well your<\/span><span style=\"font-weight: 400;\"> sales team<\/span><span style=\"font-weight: 400;\"> is using social media to communicate with clients.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Key performance indicators<\/span><span style=\"font-weight: 400;\"> can be divided into four different categories:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Account management indicators<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Team management indicators<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sales process<\/span><span style=\"font-weight: 400;\"> indicators<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Financial indicators<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Examples of KPIs you might want to track include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Number of new accounts created<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Number of new opportunities won<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Average deal size per customer<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Total number <\/span><span style=\"font-weight: 400;\">of <\/span><span style=\"font-weight: 400;\">closed deals<\/span><span style=\"font-weight: 400;\"> per month or quarter<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Customer acquisition cost per customer<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Average revenue per account<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Number of leads generated through <a href=\"https:\/\/newrcblog.wpengine.com\/us\/en\/blog\/social-media-for-small-business\/\">social media<\/a> or email marketing campaigns<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Value of new business won versus lost<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Total number<\/span><span style=\"font-weight: 400;\"> of unengaged customers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/newrcblog.wpengine.com\/us\/en\/blog\/how-to-increase-customer-satisfaction\/\"><span style=\"font-weight: 400;\">Customer satisfaction<\/span><\/a><span style=\"font-weight: 400;\"> score<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Number of deals<\/span><span style=\"font-weight: 400;\"> added to the pipeline daily, monthly, or quarterly<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Individual salesperson\u2019s average deal size compared to sales team\u2019s average deal size<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Number of deals<\/span><span style=\"font-weight: 400;\"> lost compared to the <\/span><span style=\"font-weight: 400;\">number of deals<\/span><span style=\"font-weight: 400;\"> won each quarter, month or year<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Customer retention rate<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Number of proposals created versus number of proposals won<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">KPIs can also be a bit more difficult to pin down because they will be unique to your team.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><\/p>\n<div class=\"rc-post-content-cta rc-post-content-cta_yellow\">\n<div class=\"rc-post-content-cta-columns\">\n<div class=\"bottom-cta-img\">\n\t\t\t\t<img decoding=\"async\" width=\"930\" height=\"700\" src=\"\/us\/en\/blog\/wp-content\/uploads\/2021\/12\/Call-Center-Rep.jpeg\" class=\"responsive-image\" alt=\"\" \/>\t\t\t<\/div>\n<div class=\"bottom-cta-copy\">\n<div class=\"headline-copy\" style=\"text-align:left;\">How to be a good salesperson: The tips, traits &amp; tools you need <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"rc-post-content-cta-footer\">\n<div class=\"bottom-cta-logo-container\">\n<div class=\"bottom-cta-logo\"><span aria-hidden=\"true\"><svg width=\"154\" height=\"34\" viewBox=\"0 0 154 34\" fill=\"#000\" role=\"img\" aria-labelledby=\"cta-ring-logo-1125511969\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n\t\t\t\t\t\t\t<title id=\"cta-ring-logo-1125511969\">Ring Central Logo<\/title>\t\n\t\t\t\t\t\t\t<path d=\"M154 3.89618H150.386V26.9657H154V3.89618Z\" \/>\n\t\t\t\t\t\t\t<path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M141.313 11.6299C137.976 11.6299 135.388 13.2501 134.95 16.5546H138.504C138.754 15.3082 139.675 14.5591 141.313 14.5591C143.214 14.5591 144.086 15.6499 144.086 17.3647V18.1444H140.438C137.078 18.1444 134.593 19.6411 134.593 22.697C134.593 25.7529 136.619 27.3411 139.55 27.3411C141.826 27.3411 143.323 26.3721 144.133 24.8145H144.288V26.9529H147.716V17.4802C147.702 13.8276 145.833 11.6299 141.313 11.6299ZM140.58 24.5675C139.177 24.5675 138.303 23.8809 138.303 22.7339C138.303 21.4233 139.238 20.7383 140.921 20.7383H144.069L144.086 20.9549C144.088 23.2232 142.777 24.5675 140.58 24.5675Z\" \/>\n\t\t\t\t\t\t\t<path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M128.187 26.9657V19.2047C128.187 16.8979 129.623 15.4317 131.896 15.4317H133.321V12.0036H131.854C130.14 12.0036 128.893 12.6581 128.114 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d=\"M16.9769 0.548269C16.101 0.914019 15.307 1.44981 14.6364 2.12196L16.332 3.81756C16.7764 3.37 17.3041 3.01548 17.8865 2.77325C18.4688 2.53102 19.0928 2.40429 19.7232 2.40269C20.3537 2.40108 20.9777 2.523 21.5616 2.76362C22.1439 3.00264 22.6749 3.35556 23.1225 3.79991L24.8181 2.10431C23.8106 1.1001 22.5289 0.415123 21.1333 0.139206C19.7377 -0.139919 18.2907 0.00285184 16.9769 0.548269Z\" \/>\n\t\t\t\t\t\t<\/svg><\/span><\/div>\n<\/p><\/div>\n<div class=\"bottom-cta-link\">\n\t\t\t\t<a href=\"https:\/\/www.ringcentral.com\/us\/en\/blog\/how-to-be-a-good-salesperson\/\" class=\"view-all view-all-brown\" data-dl-name=\"Read the blog\" data-dl-element=\"button\" data-dl-additional-info=\"bottom cta banner\" data-no-auto-dl=\"true\">Read the blog<span class=\"svg-icon\" aria-hidden=\"true\"><svg width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" fill=\"#000\" role=\"img\" aria-labelledby=\"cta-ring-arrow-1125511969\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n\t\t\t\t\t<title id=\"cta-ring-arrow-1125511969\">Ring Central Logo<\/title>\t\n\t\t\t\t\t<path d=\"M0 11.5C0 11.2239 0.223858 11 0.5 11H21.6797C21.9559 11 22.1797 11.2239 22.1797 11.5V12.5C22.1797 12.7761 21.9559 13 21.6797 13H0.5C0.223858 13 0 12.7761 0 12.5V11.5Z\" ><\/path>\n\t\t\t\t\t<path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M21.1718 12.0001L15.8086 6.63691C15.6134 6.44165 15.6134 6.12506 15.8086 5.9298L16.5157 5.22269C16.711 5.02743 17.0276 5.02743 17.2228 5.22269L23.6467 11.6465C23.8419 11.8418 23.8419 12.1584 23.6467 12.3536L17.2228 18.7775C17.0276 18.9727 16.711 18.9727 16.5157 18.7775L15.8086 18.0704C15.6134 17.8751 15.6134 17.5585 15.8086 17.3633L21.1718 12.0001Z\" ><\/path>\n\t\t\t\t<\/svg><\/span><\/a>\n\t\t\t<\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>\t<\/span><\/p>\n<h2 class=\"heading h3 h2\"><span style=\"font-weight: 400;\"><a id=\"six\"><\/a>Helpful sales metrics hack: Integrate your CRM with your business phone\u00a0<\/span><\/h2>\n<p>Tracking lots of complicated metrics can take a lot of time, especially if you have to pull your data manually every month or quarter.<\/p>\n<p>One easy way to streamline your sales metrics? Hook your cloud phone app into your CRM software. RingCentral, for example, pairs with CRMs like Salesforce, Hubspot, Zendesk, and more. Every inbound and outbound call is made via RingCentral <strong>right within your CRM of choice<\/strong>, so there&#8217;s no need to manually enter the info after your calls. Here&#8217;s how <a href=\"https:\/\/newrcblog.wpengine.com\/us\/en\/blog\/5-ways-to-improve-the-customer-experience-with-the-ringcentral-for-salesforce-integration\/\">RingCentral&#8217;s Salesforce integration<\/a> looks:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-43712 size-full\" src=\"\/us\/en\/blog\/wp-content\/uploads\/2020\/09\/Jupiter-blue.png\" alt=\"ringcentral salesforce integration\" width=\"930\" height=\"700\" \/><\/p>\n<p>Want to learn more?\u00a0<strong><a href=\"https:\/\/newrcblog.wpengine.com\/us\/en\/blog\/sales-crm-small-business\/\">Read about the benefits of CRMs for small business sales<\/a>.\u00a0<\/strong><\/p>\n<h2 class=\"heading h2\"><span style=\"font-weight: 400;\"><a id=\"four\"><\/a>Common sales metrics tracked by small businesses<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">We know we just dropped a <em>lot<\/em> of options for sales metrics tracking. But don&#8217;t panic! You don&#8217;t have to track every single item we listed here. Every small business is different, so it&#8217;s up to you to determine which of these metrics are most meaningful for you and your team.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Your industry can determine what your <\/span><span style=\"font-weight: 400;\">sales metrics<\/span><span style=\"font-weight: 400;\"> need to be. For example, the advertising industry might use different goals than an IT consulting firm.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It&#8217;s also important to think about what your company specifically needs. For example, if you are using a startup<\/span><span style=\"font-weight: 400;\"> business model<\/span><span style=\"font-weight: 400;\"> where you have low overhead and a small team, you might need to focus on lead generation metrics.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the other hand, if you have an established business that is trying to expand its clientele, you might focus more on sales activity metrics.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here are some of the most common <\/span><span style=\"font-weight: 400;\">sales metrics<\/span><span style=\"font-weight: 400;\"> used by small businesses:\u00a0<\/span><\/p>\n<h3 class=\"heading h3\"><span style=\"font-weight: 400;\">Average <\/span><span style=\"font-weight: 400;\">close rate<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Your average <\/span><span style=\"font-weight: 400;\">close rate<\/span><span style=\"font-weight: 400;\"> is how many deals you complete out of all the opportunities that come to you. It&#8217;s also known as the close ratio.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Average <\/span><span style=\"font-weight: 400;\">Close Rate<\/span><span style=\"font-weight: 400;\"> = <\/span><span style=\"font-weight: 400;\">Total number<\/span><span style=\"font-weight: 400;\"> of closed opportunities\/Number of opportunities<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If a company has 1,000 opportunities and closes 100 deals, its <\/span><span style=\"font-weight: 400;\">close rate<\/span><span style=\"font-weight: 400;\"> would be 10%.<\/span><\/p>\n<h3 class=\"heading h3\"><span style=\"font-weight: 400;\">Average sale price<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Average sale price is the average <\/span><span style=\"font-weight: 400;\">amount of revenue<\/span><span style=\"font-weight: 400;\"> that your company makes on each deal.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Average Sale Price = <\/span><span style=\"font-weight: 400;\">Total revenue<\/span><span style=\"font-weight: 400;\">\/<\/span><span style=\"font-weight: 400;\">Total number <\/span><span style=\"font-weight: 400;\">of closed opportunities<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the company from the previous example makes $5,000,000 in sales and closes 100 deals, the average sale price is $50,000.<\/span><\/p>\n<h3 class=\"heading h3\"><span style=\"font-weight: 400;\">Customer acquisition cost (CAC)<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Customer acquisition cost is how much you spend to bring in one new customer. It includes marketing and advertising expenses, salaries for staff, and any other expenses necessary to acquire a new client.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Customer Acquisition Cost = <\/span><span style=\"font-weight: 400;\">Total sales<\/span><span style=\"font-weight: 400;\"> and marketing expenses\/Number of <\/span><span style=\"font-weight: 400;\">new customers <\/span><span style=\"font-weight: 400;\">won or purchased<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the company from the example above has $3,000,000 in sales and marketing expenses and brings in 100 <\/span><span style=\"font-weight: 400;\">new customers<\/span><span style=\"font-weight: 400;\">, its CAC is $30,000.<\/span><\/p>\n<h3 class=\"heading h3\"><span style=\"font-weight: 400;\">Profit margin<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Profit margin<\/span><span style=\"font-weight: 400;\"> is an indicator of how much money your company is making after expenses, salaries, and other costs. It is expressed as a percentage. You can calculate your profit margin using the formula below or use a <a href=\"https:\/\/www.sage.com\/en-us\/blog\/margin-calculator\/\">margin calculator<\/a> for ease.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Profit Margin<\/span><span style=\"font-weight: 400;\"> = (Revenue &#8211; total expenses)\/Revenue<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the company from the example above makes $5,000,000 in revenue and has expenses of $3,000,000, its<\/span><span style=\"font-weight: 400;\"> profit margin<\/span><span style=\"font-weight: 400;\"> is 40%.<\/span><\/p>\n<h3 class=\"heading h3\"><a href=\"https:\/\/newrcblog.wpengine.com\/us\/en\/blog\/customer-retention-rate\/\"><span style=\"font-weight: 400;\">Customer retention rate<\/span><\/a><\/h3>\n<p><span style=\"font-weight: 400;\">The <\/span><span style=\"font-weight: 400;\">customer retention rate<\/span><span style=\"font-weight: 400;\"> is the percentage of your <\/span><span style=\"font-weight: 400;\">existing customers<\/span><span style=\"font-weight: 400;\"> that continue to do business with you.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Customer Retention Rate<\/span><span style=\"font-weight: 400;\"> = <\/span><span style=\"font-weight: 400;\">Number of customers<\/span><span style=\"font-weight: 400;\"> at the beginning of a specific period\/<\/span><span style=\"font-weight: 400;\">Number of customers<\/span><span style=\"font-weight: 400;\"> at the end of that specific period<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the company from the example above has 500 customers at the beginning of a year and 550 customers at the end, its <\/span><span style=\"font-weight: 400;\">customer retention rate<\/span><span style=\"font-weight: 400;\"> would be 105%.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><\/p>\n<div class=\"rc-post-content-cta rc-post-content-cta_orange\">\n<div class=\"rc-post-content-cta-columns\">\n<div class=\"bottom-cta-img\">\n\t\t\t\t<img decoding=\"async\" width=\"930\" height=\"700\" src=\"\/us\/en\/blog\/wp-content\/uploads\/2022\/02\/retail-connected.jpeg\" class=\"responsive-image\" alt=\"\" \/>\t\t\t<\/div>\n<div class=\"bottom-cta-copy\">\n<div class=\"headline-copy\" style=\"text-align:left;\">8 affordable strategies to improve customer retention<\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"rc-post-content-cta-footer\">\n<div class=\"bottom-cta-logo-container\">\n<div class=\"bottom-cta-logo\"><span aria-hidden=\"true\"><svg width=\"154\" height=\"34\" viewBox=\"0 0 154 34\" fill=\"#000\" role=\"img\" aria-labelledby=\"cta-ring-logo-329639008\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n\t\t\t\t\t\t\t<title id=\"cta-ring-logo-329639008\">Ring Central Logo<\/title>\t\n\t\t\t\t\t\t\t<path d=\"M154 3.89618H150.386V26.9657H154V3.89618Z\" \/>\n\t\t\t\t\t\t\t<path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M141.313 11.6299C137.976 11.6299 135.388 13.2501 134.95 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2.40269C20.3537 2.40108 20.9777 2.523 21.5616 2.76362C22.1439 3.00264 22.6749 3.35556 23.1225 3.79991L24.8181 2.10431C23.8106 1.1001 22.5289 0.415123 21.1333 0.139206C19.7377 -0.139919 18.2907 0.00285184 16.9769 0.548269Z\" \/>\n\t\t\t\t\t\t<\/svg><\/span><\/div>\n<\/p><\/div>\n<div class=\"bottom-cta-link\">\n\t\t\t\t<a href=\"https:\/\/www.ringcentral.com\/us\/en\/blog\/customer-retention\/\" class=\"view-all view-all-brown\" data-dl-name=\"Read the blog\" data-dl-element=\"button\" data-dl-additional-info=\"bottom cta banner\" data-no-auto-dl=\"true\">Read the blog<span class=\"svg-icon\" aria-hidden=\"true\"><svg width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" fill=\"#000\" role=\"img\" aria-labelledby=\"cta-ring-arrow-329639008\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n\t\t\t\t\t<title id=\"cta-ring-arrow-329639008\">Ring Central Logo<\/title>\t\n\t\t\t\t\t<path d=\"M0 11.5C0 11.2239 0.223858 11 0.5 11H21.6797C21.9559 11 22.1797 11.2239 22.1797 11.5V12.5C22.1797 12.7761 21.9559 13 21.6797 13H0.5C0.223858 13 0 12.7761 0 12.5V11.5Z\" ><\/path>\n\t\t\t\t\t<path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M21.1718 12.0001L15.8086 6.63691C15.6134 6.44165 15.6134 6.12506 15.8086 5.9298L16.5157 5.22269C16.711 5.02743 17.0276 5.02743 17.2228 5.22269L23.6467 11.6465C23.8419 11.8418 23.8419 12.1584 23.6467 12.3536L17.2228 18.7775C17.0276 18.9727 16.711 18.9727 16.5157 18.7775L15.8086 18.0704C15.6134 17.8751 15.6134 17.5585 15.8086 17.3633L21.1718 12.0001Z\" ><\/path>\n\t\t\t\t<\/svg><\/span><\/a>\n\t\t\t<\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>\t<\/span><\/p>\n<h3 class=\"heading h3\"><span style=\"font-weight: 400;\">Customer <\/span><span style=\"font-weight: 400;\">churn rate<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The customer <\/span><span style=\"font-weight: 400;\">churn rate<\/span><span style=\"font-weight: 400;\"> is the percentage of customers lost each year. This metric might be more important if you are in a highly competitive industry with high customer turnover.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Customer <\/span><span style=\"font-weight: 400;\">churn rate<\/span><span style=\"font-weight: 400;\"> = (<\/span><span style=\"font-weight: 400;\">Number of customers<\/span><span style=\"font-weight: 400;\"> at the end of a specific Period &#8211; number of <\/span><span style=\"font-weight: 400;\">new customers<\/span><span style=\"font-weight: 400;\"> gained during that period)\/<\/span><span style=\"font-weight: 400;\">Number of customers<\/span><span style=\"font-weight: 400;\"> at the beginning of that period<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the company from the example above has 500 customers at the end of a year and loses 150 during that year, its customer <\/span><span style=\"font-weight: 400;\">churn rate<\/span><span style=\"font-weight: 400;\"> would be 30%.<\/span><\/p>\n<h3 class=\"heading h3\"><span style=\"font-weight: 400;\">Customer lifetime value<\/span><span style=\"font-weight: 400;\"> (CLV)<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The <\/span><span style=\"font-weight: 400;\">customer lifetime value<\/span><span style=\"font-weight: 400;\"> is the <\/span><span style=\"font-weight: 400;\">total revenue<\/span><span style=\"font-weight: 400;\"> you expect to make from a customer over the course of its relationship with your business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Customer lifetime value<\/span><span style=\"font-weight: 400;\"> = Average sale price x <\/span><span style=\"font-weight: 400;\">Customer retention rate<\/span><span style=\"font-weight: 400;\"> x Number of years a customer is expected to stay with your company<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the company from the example above has an average sale price of $50,000 and a <\/span><span style=\"font-weight: 400;\">customer retention rate<\/span><span style=\"font-weight: 400;\"> of 105%, and an average customer stays with the company for five years, its CLV is $250,000.<\/span><\/p>\n<h3 class=\"heading h3\"><span style=\"font-weight: 400;\">Lead-to-win ratio<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The lead to win ratio is how many leads it takes you to close one deal. If a company receives 100 leads and closes 10 deals, its lead to win ratio is 10%.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Lead to win ratio = <\/span><span style=\"font-weight: 400;\">Number of deals<\/span><span style=\"font-weight: 400;\"> closed\/Number of leads generated<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The lead to win ratio is different from the <\/span><span style=\"font-weight: 400;\">close rate<\/span><span style=\"font-weight: 400;\"> because it takes into account prospects that didn&#8217;t become customers. For example, if you get 100 leads but your <\/span><span style=\"font-weight: 400;\">close rate<\/span><span style=\"font-weight: 400;\"> is 10%, that means 90 of those leads didn&#8217;t become customers.<\/span><\/p>\n<h3 class=\"heading h3\"><span style=\"font-weight: 400;\">Number of opportunities created\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Opportunities created is the number of leads that you added to your funnel during a specific time period. Your company can add opportunities by marketing to new leads, adding prospects from inbound leads, or creating opportunities with existing clients.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Number of opportunities created = Number of leads added &#8211; number of leads lost<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the example company has 1,000 incoming leads and adds 100 to its pipeline, then it added 900 opportunities. At the same time, if it loses 100 leads during the period, then it is left with 900 opportunities created.<\/span><\/p>\n<h2 class=\"heading h3 h2\"><span style=\"font-weight: 400;\"><a id=\"five\"><\/a>Challenges of tracking <\/span><span style=\"font-weight: 400;\">sales metrics<\/span><span style=\"font-weight: 400;\"> and analytics<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Setting goals can be difficult, especially as a small business in its early years, when there&#8217;s little comparison data for setting benchmarks. Many people choose easy-to-reach goals that they know they can achieve without too much trouble. However, these types of goals give no motivation to try to improve and you will not be able to track real progress.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It can also be hard for sales teams to track metrics and analytics because they cannot always understand the data they have. Creating a sales analytics guide or document can help your team get more familiar with the data you are collecting.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is also difficult to track data for a small business, especially if you do not have a large team or a lot of <\/span><span style=\"font-weight: 400;\">data points <\/span><span style=\"font-weight: 400;\">to use yet. You might need to tighten your focus and track only a couple of the most important metrics.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The good news: there&#8217;s no need to reinvent the wheel. Don&#8217;t be afraid to ask your peers and other companies about their sales analytics. There is a good chance that if they&#8217;re doing it right, you&#8217;ll be able to learn from them.<\/span><\/p>\n<h2 class=\"heading h3 h2\"><span style=\"font-weight: 400;\">Sales metrics for small businesses: Your key to closing more deals\u00a0<\/span><\/h2>\n<p>Analyzing sales metrics can really be a springboard for growing your customer base and selling more. But don&#8217;t feel overwhelmed! Tracking <em>any<\/em> aspect of your sales process is bound to show you your team&#8217;s strengths and the opportunities for improvement.\u00a0 So start small. Track a few of the most meaningful metrics for a quarter, or even half a year. See what that baseline data reveals; you might be surprised!<\/p>\n<p>From there, you can build out a more robust plan of action for tracking\u2014and acting on\u2014the results. Because all of these numbers don&#8217;t mean much if you don&#8217;t use them to improve.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you&#8217;ve been in business for even a little while, you likely track some sales metrics already. But are you tracking the\u00a0right metrics? And how can you use this information to close even more deals?\u00a0 The key is to identify the sales metrics that matter most and focus on the insights you can find by &#8230;<\/p>\n","protected":false},"author":29,"featured_media":51033,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17901,43336],"tags":[380],"class_list":["post-50976","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-leadership","category-sales","tag-sales"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.3 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Sales metrics for small businesses: What to track &amp; why | RingCentral Blog<\/title>\n<meta name=\"description\" content=\"Learn about important sales metrics to track for your business and how to leverage this data. Plus: helpful tools to get your analytics game on point.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ringcentral.com\/us\/en\/blog\/sales-metrics-small-business\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sales metrics for small businesses: What to track &amp; why\" \/>\n<meta property=\"og:description\" content=\"Learn about important sales metrics to track for your business and how to leverage this data. 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