Sales metrics: What numbers should you track?
Sales metrics are an important part of any business. They allow you to track your progress and see where you need to make changes. However, many business owners don’t know which numbers to track. In this blog post, we will discuss the most important sales metrics and how to track them.
The first and most important metric to track is your sales goals. Without a goal, you will have no way of knowing if you are on track. Make sure to set realistic goals that you can achieve.
Once you have your sales goals set, it’s time to start tracking your progress. The best way to do this is by using a sales dashboard. A sales dashboard and access to professional data analytics solutions will show you your current progress and how close you are to reaching your goals and will help you dramatically when it comes to tracking your sales figures.
The second most important metric is your sales revenue. This will tell you how much money you are making from your sales efforts. You can track this by month, quarter, or year.
Make sure to break down your sales revenue by product or service. This will help you see which products or services are selling the most, therefore allowing you to see where you need to focus your efforts.
Cost of Goods Sold
The third metric to track is your cost of goods sold. This is the cost of the products or services that you sell. You can track this by month, quarter, or year.
Make sure to track the cost of goods sold for each product or service. This will help you see which products are more profitable and to help you make potential savings in areas where product development is too high.
You can also track your cost of goods sold as a percentage of sales. This will tell you how much it costs you to produce each product or service and help you to make decisions on pricing.
Customer Acquisition Costs
The fourth metric to track is your customer acquisition costs. This is how much it costs you to acquire a new customer. You can track this by month, quarter, or year.
Make sure to track your customer acquisition costs for each channel. This will help you see which channels are more effective at acquiring customers. Using these figures, you can then focus your marketing efforts on the most effective channels and maximise their potential while ensuring you’re not wasting your time on channels that aren’t best for you.
The fifth metric to track is your conversion rates. This tells you how many of your leads turn into customers. You can track this by month, quarter, or year.
Make sure to track the conversion rate for each stage of the buying process. This will help you see where you are losing potential customers. Tracking this figure will help you improve your conversion rates because you’ll be able to identify your bottlenecks and problems and your strengths so you can double down.
Sales metrics are an important part of any business. By tracking the right sales metrics, you can make sure that your business is on track and making money. If you don’t know which sales metrics to track, make sure to track the ones listed in this blog post.