As a sales leader, you know you need to track your team’s KPIs to measure and improve performance. However, when faced with an endless list of sales metrics, they can complicate decision-making instead of providing direction. And that's sort of counterproductive.
Here is a list of the 10 most important B2B sales KPIs you should track to improve sales productivity and your company’s bottom line.
But before we get to them, let’s define sales KPIs and explore why tracking these metrics is essential.
What Are Sales KPIs?
Sales KPIs (Key Performance Indicators) are specific measurements used to evaluate how well your sales team is performing and whether your sales strategies are working. They help you gauge productivity, pipeline health, and revenue growth to make informed decisions and hit your targets.
Are sales KPIs the same as sales targets? No, not quite.
Sales targets are specific, measurable goals that define what you aim to achieve, such as closing $500,000 in revenue this quarter. On the other hand, KPIs are the metrics that track how effectively you're moving toward those targets, like conversion rates, average deal size, or the length of your sales cycle.
Why Track Sales KPIs?
Most companies focus on tracking top sales metrics: monthly calls, deals won, and average deal value. Don’t get me wrong — these numbers paint a picture, but not a complete one.
What I mean is that while these metrics reveal the effectiveness of your sales strategy to some extent, they don’t pinpoint tactical mistakes, underperforming sales reps, or other bottlenecks in your sales process.
Properly tracking sales KPIs—focusing on the right metrics for your business—can drive meaningful improvements that impact your organization in many ways.
Firstly, defining sales KPIs helps your organization align on the metrics that contribute to revenue growth and profitability. Focusing on these key numbers makes it easier to see what’s working and what isn’t.
A McKinsey report shows that companies using data-driven sales strategies often grow faster and increase their profits by 15% to 25%. Tracking the right KPIs helps you understand what drives success and what blind spots exist in your sales workflows.
Secondly, measuring KPIs also can pinpoint your sales team’s performance issues. Research reveals that the top 30% of sales reps can sell up to four times more than the bottom 30%. Tracking the right KPIs ensures you can identify these performance gaps, focus on areas for improvement, and provide the necessary support to elevate your entire team.
Finally, KPIs help you use your resources wisely. When you know which leads are most likely to buy or which products bring in the most revenue, your team can focus on the best opportunities. This also helps you predict future revenue more accurately and plan better.
Now that you know why sales KPIs matter, let’s focus on which ones to track.
10 Most Important B2B Sales Metrics to Track for Revenue Growth
- Revenue Growth Rate
Revenue growth rate measures the percentage increase (or decrease) in your company’s sales over a specific period. In SaaS, consistent growth is essential for scaling operations and attracting investors. Calculating this KPI helps you identify trends and evaluate whether your current strategies deliver results.
📈 Why track it:
Tracking this metric helps you understand your company's financial health and the effectiveness of your sales and marketing strategies. A consistent increase indicates strong product-market fit and operational efficiency.
🔢 Formula:
Revenue Growth Rate = (Current Period Revenue - Previous Period Revenue) / Previous Period Revenue * 100
- Average Deal Size
Next is the average deal size, a sales KPI that measures the typical revenue generated per closed deal. In B2B sales, especially in SaaS, understanding this metric helps tailor sales strategies and allocate resources. It also provides insight into the types of clients and contracts that drive business growth.
📈 Why track it:
Monitoring average deal size helps you understand the quality of your deals and whether your team is focused on high-value opportunities. It can also inform pricing strategies and highlight trends in customer purchasing behavior.
🔢 Formula:
Average Deal Size = Total Revenue from Closed Deals / Number of Closed Deals
- Lead Conversion Rate
Another important KPI for sales is lead conversion rate. This metric measures the percentage of leads progressing through your sales funnel and becoming paying customers. In B2B sales, leads are often nurtured over more extended periods, and this KPI helps identify how well your sales team converts prospects into clients.
📈 Why track it:
Tracking your lead conversion rate reveals the quality of your leads and the effectiveness of your sales process. It helps you pinpoint where prospects drop off and refine your approach for better results.
🔢 Formula:
Lead Conversion Rate = (Number of Converted Leads / Number of Qualified Leads) * 100
- Sales Cycle Length
Sales processes in B2B are rarely straightforward. The sales cycle length tracks how long it takes to turn a lead into a paying customer. Several factors can slow things down: multiple decision-makers, complex products requiring detailed evaluations, or integration concerns that demand technical reviews.
📈 Why track it:
Pinpointing where delays occur—whether in stakeholder approvals, product demos, or contract negotiations—helps you optimize your process and close deals faster.
🔢 Formula:
Sales Cycle Length = Total Number of Days to Close All Deals / Number of Closed Deals
- Customer Lifetime Value (CLV)
Not all customers are created equal. CLV, also called lifetime value or LTV, estimates the total revenue a business can expect from a single customer throughout their relationship with the company. For SaaS and subscription-based models, CLV helps determine how valuable long-term customers are to a business's bottom line.
An ideal CLV ratio is 3:1. This means the value generated by a single customer should be three times higher than the cost of acquiring that customer.
📈 Why track it:
Tracking CLV enables you to know what your customer acquisition costs should be to remain profitable.
🔢 Formula:
CLV = Average Purchase Value * Purchase Frequency * Average Customer Lifespan
- Customer Acquisition Cost (CAC)
Every new customer comes with a price tag. CAC measures how much you spend to acquire a single customer, including marketing and sales expenses. If CAC is higher than CLV, your growth isn’t sustainable, and you need to adjust one or the other to make your business profitable.
📈 Why track it:
Tracking CAC ensures you balance growth with profitability and not overspending to acquire customers.
🔢 Formula:
CAC = Total Sales and Marketing Costs / Number of New Customers Acquired
- Pipeline-to-Quota Ratio
Is your sales pipeline strong enough to meet your targets? The pipeline-to-quota ratio compares the total value of deals in your pipeline to your sales quota. This gives you a snapshot of whether your current opportunities are sufficient to achieve your goals.
To illustrate, if your sales quota for the quarter is $1 million, and your current pipeline shows $3 million in potential deals, your pipeline-to-quota ratio is 3:1. This indicates you have a solid chance of meeting or exceeding your quota. However, suppose the ratio is only 1:1 or lower. In that case, you might need to prospect more aggressively or prioritize higher-value deals to avoid falling short because your current pipeline isn’t sufficient to meet your quota without a 100% win rate.
📈 Why track it:
This metric helps you forecast revenue accurately and identify if your team’s pipeline is robust enough to support growth.
🔢 Formula:
Pipeline-to-Quota Ratio = Total Pipeline Value / Sales Quota
- Win Rate
How many deals is your team actually closing? Win rate measures the percentage of sales opportunities that turn into successful closed-won deals. A rising win rate often means better targeting, messaging, and sales execution. On the other hand, a lower win rate means you’ve got a leaky deal funnel that you need to solve.
📈 Why track it:
A higher win rate means your team is effectively converting leads. It’s a direct indicator of sales performance and a successful go-to-market strategy.
🔢 Formula:
Win Rate = (Number of Won Deals / Number of Opportunities) * 100
- Monthly Recurring Revenue (MRR)
MRR tracks the predictable revenue your business earns from subscriptions each month. This is a key metric for SaaS and other subscription-based businesses that bill monthly to assess financial stability and growth potential.
📈 Why track it:
Tracking MRR helps you understand your recurring income stream and growth plan and then quickly identify fluctuations due to new sign-ups, upgrades, downgrades, or customer churn. It also helps you spot potential revenue leakage caused by billing errors or downgrades, enabling you to take action before significant losses occur.
🔢 Formula:
MRR = (Number of Current Customers) * (Average Revenue per Customer per Month)
- Churn Rate
Lastly, the churn rate tracks the percentage of customers who cancel their subscriptions or stop doing business with you over a given period. Controlling churn is crucial for maintaining steady growth.
📈 Why track it:
High churn undermines growth, no matter how good your acquisition efforts are. Monitoring churn helps you identify retention issues and improve customer satisfaction to keep clients longer.
🔢 Formula:
Churn Rate = (Number of Customers Lost in Period / Total Customers at Start of Period) * 100
Parting Thoughts
Tracking these 10 B2B sales metrics gives you the insights needed to keep your team aligned and your revenue growing.
To get the most value from your KPIs, analyze trends over several months or quarters. With the right data, you can fine-tune strategies, clear obstacles, and drive your team toward predictable, scalable success.
Tracking the right sales KPIs is essential, but capturing and analyzing insights can be time-consuming. Momentum automates the process with AI-powered call summaries that instantly generate insights from every sales conversation. These summaries are automatically saved in Salesforce and shared in Slack, ensuring your team never misses essential updates.
Momentum identifies key trends such as pipeline health, churn risk, and coaching opportunities, giving you real-time visibility into performance metrics without manual effort. By automating note-taking and insight delivery, your reps stay focused on selling, and your leaders get the data they need to forecast accurately and drive revenue growth.