Is Sales Revenue A Kpi

With a hierarchy of measures we can see why revenue is not a good kpi.

Is sales revenue a kpi. The end goal is always growth and revenue is the best metric for growth. This kpi is also called average sales price asp or average transaction size ats. Average revenue per account arpa the average revenue per customer upon close. You can use this kpi template for sales teams to create a simple tracking system.

This sales kpi measures the increase or decrease of your sales revenue on a monthly basis. Whether you re a sales manager trying to motivate your team or a sales rep aiming for a promotion you need to understand which sales kpis and metrics to track why they matter to your company and how to use them correctly. 1 macroscopic vision. Proper separation of long term goals and short term goals is important for defining proper kpis.

In the saas sector annual sales revenue is though still important often too far of a projection for most startups. Let s say that we have two marketing sales groups. By tracking revenue closely marketing and sales teams can calibrate and recalibrate activities 2. One focused on acquisition of new customers.

What is the revenue to be generated per month targets customer base growth potential competitor activities etc. For defining sales kpi the proper definition of goals is essential. Don t slow your sales team down with numbers and charts instead you need to track the right sales kpis and metrics. Revenue is an aggregate measure.

Unlike revenue more isn t always better when it comes to sales data. Sales team kpi template. Refer to the quick tips in this section when talking to analysts to make sense of your sales kpis. Revenue the number one financial metric every sales and marketing team should track is revenue says shuey shujab of whitehat agency.

As you can see in the chart above we track arpa by business segment and unsurprisingly the further you move upmarket the larger your arpa. Should be analyzed which will give a holistic view of the business required to set kpis. Everything in black type in the third diagram is an aggregate measure compiled from the measures below it.