Sales metrics that matter (why output beats input)

Let me share something that might ruffle a few feathers in the sales world: we're measuring too many things that don't actually matter.

After 18 years in sales leadership at DB Schenker, one of the world's leading logistics providers, I've seen countless dashboards, metrics, and KPIs come and go.

Here's what I've learned…

Most of them are just expensive distractions.

The problem with traditional sales KPIs

During a recent presentation, I asked the audience to share their go-to sales KPIs. The responses were predictable:

• Conversion rates
• Pipeline velocity
• Activities per rep
• Call volumes
• Email open rates

Sound familiar?

The problem is these are all input metrics. They tell you what your team is doing, but not whether it's actually working. And in my experience, that's where most companies get it wrong.

Think about it this way: if someone on your team is closing deals and bringing in revenue, do you really care how many calls they made to get there? I don't. Because at the end of the day, we're not paying salespeople to make calls - we're paying them to generate revenue.

My simple three-layer approach to sales KPIs

Over the years, I've developed what I call the "Output First" trilogy. It's ridiculously simple, which is probably why it works:

Layer 1: OutputFirst, I look at results. Is the salesperson bringing in new business? Are they hitting their revenue targets? If yes, I stop there. No need to dig deeper. They're doing their job.

Layer 2: OpportunitiesIf output isn't where it needs to be, then I look at opportunities. Are they creating pipeline? Are they getting RFQs? Are they actively working on deals that could close in the next 1-3 months? If this looks healthy, I give them time. Markets fluctuate, deals take time to close.

Layer 3: ActivitiesOnly when both output and opportunities are lacking do I look at activities. Are they actually engaging with customers? Making calls? Sending proposals? If not, then we have a real problem that needs immediate attention.

Real-world examples from the logistics industry

Let me share two specific examples from my work at DB Schenker that illustrate why focusing on the right KPIs matters.

Example 1: The net sales trap

For years, we measured sales performance based on net sales revenue. Seemed logical, right? More revenue = better performance.

Then COVID hit, and container prices shot up from $2,000 to $15,000. Suddenly, our sales teams were hitting massive "growth" numbers without actually shipping more containers. They were getting bonuses for market conditions, not performance.

We had to completely restructure our KPIs to focus on volume instead of revenue. It was a painful lesson in measuring what actually matters - real business growth, not inflated numbers.

Example 2: Hunters vs. farmers

We realized our field sales teams weren't actually hunting for new business - they were just managing existing accounts. So we split our approach:

• Hunters (Field Sales): 2,000 people focused on finding new customers. We pay them per container from new accounts - simple, direct, and uncapped. Ship a container, get paid. Ship another, get paid again.
• Farmers (Key Account Managers): 700 people managing our biggest clients. They get variable bonuses based on growing these accounts against budgeted targets.

Different roles, different KPIs, different incentives. And it works because we're measuring what actually drives our business forward.

The magic formula that actually works

Here's my simplified view of sales growth:

Pipeline × Hit Rate = Growth

That's it. Create more opportunities and improve your win rate. Everything else is just noise.

But here's the catch - both sides need to work together. It's not enough for sales to create pipeline if your pricing team can't deliver competitive hit rates. And great hit rates mean nothing without opportunities to convert.

Key takeaways for sales leaders

After years of trial and error, here's what I've learned about KPIs that actually matter:

1. Align KPIs with company goals - If a metric doesn't directly contribute to business success, why are you tracking it?
2. Be willing to adjust - Markets change, conditions evolve. Your KPIs should too.
3. Remember KPIs are indicators, not goals - They should tell you if you're on track, not become an end in themselves.
4. Focus on output first - Input metrics can support, but they should never be the main focus.
5. Keep it simple - The best KPIs are the ones your entire team can understand and act on.

The bottom line

We've become obsessed with measuring everything we can measure, rather than measuring what we should measure. We burden our sales teams with reporting requirements, activity tracking, and input metrics that pull them away from their actual job - talking to customers and closing deals.

So here's my challenge to you: Look at your current sales KPIs. How many actually measure output versus input? How many could you eliminate without impacting your ability to drive revenue?

Because in my experience, the companies that win aren't the ones with the most sophisticated dashboards. They're the ones that keep their sales teams focused on what matters - bringing in business.

And that's something worth measuring.