To measure the success of your business development efforts, you need to track some key performance indicators (KPIs) that reflect your goals and objectives. Some of the most common and important business development metrics are:
Sales revenue: This is the amount of money you generate from selling your products or services to your customers. It is the ultimate indicator of your business growth and profitability. You can increase your sales revenue by finding new customers, retaining existing customers, increasing the average order value, or expanding into new markets.
Net profit margin: This is the percentage of your sales revenue that is left after deducting all your expenses, such as cost of goods sold, operating costs, taxes, and interest. It shows how efficient and profitable your business is. You can improve your net profit margin by reducing your costs, increasing your prices, or optimizing your operations.
Customer net promoter score (NPS): This is a measure of how likely your customers are to recommend your products or services to others. It is based on a simple question: “How likely are you to recommend us to a friend or colleague?” The answers are scored on a scale of 0 to 10, with 0 being not likely and 10 being extremely likely. The NPS is calculated by subtracting the percentage of detractors (those who score 0 to 6) from the percentage of promoters (those who score 9 or 10). It shows how satisfied and loyal your customers are. You can increase your NPS by delivering high-quality products or services, providing excellent customer service, or creating customer loyalty programs.
Qualified leads: These are the prospects who have shown interest in your products or services and meet some criteria that make them more likely to buy from you. They are usually generated by your marketing efforts, such as website visits, email campaigns, social media interactions, or webinars. They are then passed on to your sales team for further follow-up and conversion. Qualified leads indicate how effective your marketing and lead generation strategies are. You can increase your qualified leads by creating more engaging and relevant content, optimizing your website for conversions, or using lead magnets and landing pages.
Lead to client conversion rate: This is the percentage of qualified leads who become paying customers. It shows how successful your sales team is at closing deals and generating revenue. You can improve your lead to client conversion rate by refining your sales process, providing value-added proposals, or offering incentives and discounts.
These are some of the most important business development metrics you need to track to measure your success. However, depending on your specific business goals and industry, you may also want to track other metrics, such as customer lifetime value, customer retention rate, customer acquisition cost, sales growth rate, gross margin, or referral rate. You can find more information about these and other business metrics in these resources:
5 Business Development Metrics to Help You Fill Your Pipeline
What Are Business Metrics? 35 Metrics Businesses Need to Track