Founders don’t need to be sales experts—but they do need visibility. Sales KPIs help you track what’s working, what’s not, and where your revenue machine needs attention. Whether you’re pre-revenue or scaling up, these five simple metrics can give you clarity (and confidence) in your pipeline.
1. Sales Velocity
Why it matters: Sales velocity tells you how fast revenue moves through your pipeline. It’s a diagnostic metric that helps you identify bottlenecks or leaks.
Formula:
(Number of Opportunities × Average Deal Size × Win Rate) ÷ Length of Sales CycleExample:
A SaaS company with 12 active sales opportunities, an average deal size of $6,000, a 30% win rate, and a 45-day sales cycle:(12 × $6,000 × 0.30) ÷ 45 = $480/day
This means the pipeline is generating $480 in potential revenue per day.
Learn more: What is Sales Velocity? (includes visual)
2. Lead Conversion Rate
Why it matters: A high volume of leads means nothing if you’re not converting. This metric helps founders assess marketing quality and sales follow-through.
Formula:
(Number of leads converted to sales ÷ Total leads) × 100Example:
A LinkedIn lead generation campaign brought in 100 leads, and 28 of them qualified for discovery calls:(28 ÷ 100) × 100 = 28%
This means 28% of leads are progressing into your pipeline, a sign that targeting is solid.
Tip: Differentiate between MQLs and SQLs to track conversions at every stage. Read: Lead vs Prospect in B2B Sales
3. Customer Acquisition Cost (CAC)
Why it matters: Your CAC tells you how efficient your marketing and sales engine really is. Track it over time to detect spikes in cost or signs of scale readiness.
Formula:
Total Sales & Marketing Spend ÷ Number of New CustomersExample:
A SaaS startup spent $15,000 in ad spend and SDR salaries last quarter, resulting in 10 new customers:$15,000 ÷ 10 = $1,500 CAC
If your average deal value is under $3,000, that CAC might need attention.
Pro tip: Don’t forget to include salaries, tools, and any outsourced help.
4. Pipeline Coverage Ratio
Why it matters: This metric helps you assess whether your current pipeline is big enough to hit your sales targets.
Formula:
Pipeline Value ÷ Revenue TargetExample:
If your Q2 sales target is $100,000 and your pipeline holds $400,000 in open deals:$400,000 ÷ $100,000 = 4×
A 4× coverage ratio is a healthy buffer to reach quota, especially with a 25% win rate.
Benchmark: A healthy pipeline coverage ratio typically falls between 3x and 5x. Explore the guide → What Is Pipeline Coverage?
5. Win Rate
Why it matters: This metric shows how well your team closes deals. It reflects everything from qualification to sales skills to product-market fit.
Formula:
Closed-Won Deals ÷ Total OpportunitiesExample:
Your team opened 20 qualified opportunities in April and closed 6 of them:(6 ÷ 20) × 100 = 30% win rate
That means roughly 1 in 3 deals closes, above average in many B2B contexts.
Benchmark: 20–30% is standard in B2B sales, but context matters. Track it by rep, deal size, or vertical to surface insights.
Know Your Numbers. Shape Your Strategy.
When you understand your KPIs, you don’t just report on performance—you guide it. These five metrics aren’t just for your board deck—they’re essential tools for steering your sales strategy.
Want help diagnosing your sales performance?
We’ll help you assess your pipeline, processes, and priorities, and show you where to go next.
FAQ
What are KPIs in sales?
KPIs in sales are key performance indicators that help track team performance, pipeline health, and revenue growth over time.
How often should founders review sales KPIs?
Ideally weekly or monthly, especially for early-stage companies where metrics shift quickly.
What’s a good win rate in B2B sales?
A typical benchmark is 20–30%, but it can vary by industry, product complexity, and lead source.
Can CRM tools help track these KPIs?
Yes, most modern CRMs like HubSpot or Salesforce allow you to track and report on these metrics automatically.