5 Sales Metrics Every Revenue Leader Should Track


In this article, we’ll be discussing the top 5 sales metrics areas that revenue leaders should be tracking for go-to-market success. 

Sales Metrics: An Updated Understanding

The Sales Landscape During a Pandemic

For high growth sales organizations around the world, the last year has brought about unprecedented changes in sales processes, customer engagement, and pipeline management. A shift to data-driven risk mitigation is uniquely needed to survive the present. Sales leaders need to continually be asking themselves: How do today’s activities affect tomorrow’s results?

Sales Metrics Derived From AI Are Better

The era of spreadsheets is over. Tracking sales metrics on outdated technology translates over to outdated performance management. To survive the unique landscape that sales has tread over the past year, we advocate for tracking sales metrics through AI and Data Science. Specifically, an emphasis on “real-time” metrics tracking as opposed to static reporting is needed to understand risks posed in future quarters. AI Adaptive Sales Metrics are an advanced class of analytics based on proprietary time-series analysis and are exactly that: adaptive. They constantly adapt to changes in business models and take in new streams of data to produce the most accurate insights for Go-to-Market team members that rely on them to make decisions. 

Sales Metrics Tracking Can Help Your Team Achieve Revenue Goals

Sales teams use these metrics to answer important questions about revenue certainty and can help guide in the right strategic direction to maximize sales performance. Read on to see the top 5 Sales Metrics we recommend you track, as well best practices for sales managers and leadership for managing these processes. 

Sales Metrics Tracking at the Leadership Level

Sales Metrics Analytics Tracking is Vital for Adjusting Revenue Strategy

On the leadership level, the role of sales analytics focuses more on informing the company strategy setting, guiding the priorities, running QBRs and reporting to the board, etc. Sales analytics at this level helps adjust execution of the strategy throughout the year. What excites the most visionary leaders today is the strategic value of sales analytics: the ability to enable and inform broad commercial growth and transformation, not just incremental efficiency gains. 

Assess Team Productivity and Performance 

A CFO might want to look at Historical trends of Sales Productivity by Geo in order to determine the country strategy. A CRO might want to look at the average pipe coverage across the territories to get more insights into regional marketing or channel partners’ Return On Investment. A General Manager of a Business Unit might be most interested in a Product Performance to Goal Matrix (%) cut by vertical in order to determine the investment into the product portfolio. Insights gleaned from sales data can help businesses adapt growth strategies, focusing on entirely new segments of a market or moving away from unprofitable areas.

Accurate Quota and Pipeline Planning 

For Sales Managers, quota capacity planning is critical to their success. A common mistake Aviso sees with its global customers is that sales managers let Sales Operations or Finance take the wheel when it comes to the quota planning process. The Sales Operations team is usually well-intentioned, but they don’t have the same understanding of the rep’s potential, prospect pipeline, or the marketing opportunity that the sales managers do. It’s not just the sales operations job to set the quota and carve the territory once a year during the annual planning. It is up to the sales managers to continuously monitor their teams’ capacity and run scenario analysis based on the latest personnel movements and actual team performance. 

You Should Be Tracking These Sales Metrics:  

Pipeline Metrics

Pipeline Generated metrics help you understand if your pipeline is healthy. It helps you keep track of your total pipeline created to date, ensure your team is on track to achieving your pipeline goals by tracking what’s been closed in a current quarter, what’s in the works for being closed next quarter, and what’s on track to close in future quarters. If pipeline numbers are off, you can see the data live in order to know if team by team quota will be attained. Behind the scenes, Aviso’s AI calculates how much pipeline it thinks you’re actually going to close as compared to what’s been projected. Finally, Aviso’s AI Adaptive metrics provide a real-time view of Average Selling Price from the past two quarters as compared to your current quarter. This helps teams track the average deal size and how it’s growing or shrinking quarter-on-quarter.

Coverage Ratio Metrics

Coverage Ratio metrics help you understand if you have the right mix of deals in your pipeline. You can learn about Coverage Ratio (ratio of past and current pipeline) and Commit Ratio (ratio of early and late stage deals). The higher the coverage Commit ratio (late stage) the better your team is doing. Behind the scenes, Aviso’s AI calculates how much of a yield you’ll actually get from your early and late stage pipeline.

Deal Close Metrics

Deal Performance metrics help you understand how efficiently your teams are closing deals. You get a singular view of revenue won in the past and current quarter. Managers can also see which sales teams are closing deals faster and compare time performance to the previous quarter. They can also gain an understanding of changes in Win Rate and Lost amount and if they are improving or getting worse over time. 

Product Mix Metrics

Product Mix metrics help you understand if you have the right mix of products being sold to meet goals. As you introduce new product lines or pivot strategy to focus on selling a specific product, having a live view of how much of each product has been sold on a timeline scale is key. We recommend comparing your product mix between the last, current, and the next quarter. 

Renewals Metrics

Renewals metrics help you understand how your customer retention is progressing. We advise looking at how much pipeline your renewals have for the past and current quarter to track success. If you’re a Customer Success or Revenue leaders, you should be tracking how much renewals pipeline has been achieved at any time in the past and current quarter to learn if your renewals strategy is doing what it needs to. Finally, track past and current renewal rates by team to ensure all regions or product lines are on track. 

You can track all of these sales metrics and more with Aviso’s AI Adaptive Sales Metrics feature. Visit Aviso.com or contact our Product Specialist team to get a custom consultation.

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