Five Essential Sales KPIs that Enterprise Leaders Need to Track
For every enterprise sales leader who wants to rethink their team’s key performance indicators (KPIs), there’s a seemingly endless supply of best practices to choose from.
The problem with best practices, however, is that they’re usually past practices. What may have worked well even five years ago is far from a guarantee of success today.
For enterprise sales leaders, that means the conventional wisdom around KPIs should be continually questioned — just as companies recalibrate their go-to-market efforts to meet changes in buyer behavior.
Here are five enterprise sales KPIs you should focus on to achieve ambitious, sustainable growth in even the most challenging market conditions.
5 Enterprise Sales KPIs to Watch in 2023
1. Annual contract value (ACV) per demo
ACV is a crucial metric for all sales teams, but examining the ratio of ACV generated per demo is one of the most important sales KPIs for enterprise businesses.
To calculate your ACV per demo rate, simply divide the ACV won for a given period by the total number of demos booked during that same period. Depending on your product and typical sales cycle, demos booked could be defined as the first scheduled meeting, or a completed good-fit meeting with a prospect.
This metric is important because it measures, in aggregate, how much value each meeting with a prospective customer represents. It also serves as a bellwether for the overall efficiency of your sales motion. If your reps are spending significant time and effort securing demos that translate into lower ACV, that’s a signal their time could and should be diverted elsewhere.
Many businesses focus on annual recurring revenue (ARR), but this poses some potential pitfalls, such as a handful of larger accounts being overrepresented in the overall share of the ARR. Assessing performance with this metric can be risky, because a few dominant accounts can hide an array of problems lurking in team performance — and…