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As a sales leader, you having access to the right numbers can make a world of difference to you and your team. At the most basic level, reliable metrics allow you to judge the performance of your team and identify problem areas.


Sales Targets: Sales targets are important as they provide a benchmark with which to evaluate the performance of the individual salesperson as well as the team as a whole. Without a specific sales target, it can become very easy to lose sight of your goals. With a sales target in place, it becomes possible to motivate your team to work towards achieving the target as a group.
Metrics are important because they allow the high-level strategy to translate into low-level sales targets. Organisations that set for themselves sales goals and break them down into achievable targets are more likely to execute them successfully.


Why are Sales targets important? Sales quotas being achieved lead to growth in revenue for the organisation.
Without sales and the corresponding revenue growth it entails, it is impossible for institutions to sustain their operations or survive. Sales are the lifeblood of any organisation.


Different Industry verticals need various types of metrics: Companies working in different verticals will need various types of metrics. So, depending upon the industry you are in, and the kind of product your sales team is selling, customised parameters will be more useful to you.


Different organisations have different ways of evaluating and setting targets. While some organisations have team targets and targets for specific individual salespersons (depending upon the abilities of their sales people)- other institutions prefer having sales targets depending upon the cost price and the expected selling price of the products they wish to bring to the market. Each strategy has its pros and cons. It’s up to the organisation to decide what works best for them.


Motivating your team with the help of Sales Metrics: As a sales leader part of your work will be motivating your team. Numbers are a great way to set expectations. Remember, you are not just a sales person anymore but someone who is in charge of a team. Without setting down detailed metrics, it is also tough to keep track of the progress (or lack thereof) of your team. While setting expectations for your team, it is important to bear in mind the past trends in sales for that particular product or region. Remember to set targets that are achievable. If you set targets that are too high, you will only end up demoralising your team if they are unable to reach the goals. So a balance needs to be in place.


Metrics and the Sales Funnel: Metrics are also important in the creation of a sales funnel. Different products and regions will have different sales funnel. Attaching expected parameters to every stage of the funnel will give you and your team a measurable approach to sales. If you keep track of the numbers at every stage of the funnel, you will be aware of the areas that need more work to close a


Using Metrics to coordinate with other departments: Metrics are also important since it becomes easier to coordinate with the marketing department and evaluate their marketing efforts with the help of sales figures. The number of products sold is also an indication of the effectiveness of the product. Sometimes the lack of sales may be due to technical deficiencies in the product.


“Sales without relevant metrics is like shooting arrows in the dark.”
-Arthur Miller


Learn more about important sales metrics at

1 Comment

  1. Bablofil - April 14, 2017

    Thanks, great article.

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