5 KPIs that Scream Your Sales Process Is Broken

The “Check Engine” Light: 5 KPIs that Scream Your Sales Process Is Broken 

When your sales are down, it’s tempting to blame the market, your pricing, or your team’s effort. But what if your sales engine itself is the problem? Just like a car’s check engine light warns you before a breakdown, certain key performance indicators (KPIs) flash red when your sales process needs immediate attention. 

Why Your Sales Engine Needs a Diagnostic Check 

Most sales leaders know something’s wrong when revenue drops. But why are your sales down? The answer lies in your data. Your sales engine runs on specific components—lead generation, qualification, nurturing, and closing—and when one part fails, the entire system suffers. 

Let’s examine the five critical KPIs that reveal exactly where your sales process is breaking down. While individual industries will naturally vary in opportunity stages and close rates, the following 'red flag' benchmarks represent an aggregate across all sectors to help you spot universal warning signs.

Lead Velocity Rate (LVR)

What it measures: The month-to-month growth rate of qualified leads entering your pipeline. 

Red flag threshold: Negative or stagnant growth for two consecutive months. 

Lead Velocity Rate is your early warning system. While you might still be closing deals from last quarter's pipeline, a declining LVR means future revenue is in jeopardy. If your LVR drops below 10% monthly growth or turns negative, your sales engine isn't generating enough fuel to sustain momentum. 

Opportunity-to-Close Ratio

What it measures: The percentage of qualified opportunities that convert to closed deals. 

Red flag threshold: Below 20% or declining more than 5% quarter-over-quarter. 

A healthy sales engine maintains consistent conversion rates. When your opportunity-to-close ratio drops, it signals either poor lead qualification, ineffective sales tactics, or misalignment between your solution and target market. This metric pinpoints whether your problem is pipeline quality or sales execution. 

Average Sales Cycle Length

What it measures: Time from first contact to closed deal. 

Red flag threshold: Increasing by more than 15% compared to your baseline. 

A lengthening sales cycle is like friction in your engine; it slows everything down and burns more resources. If deals that once closed in 30 days now take 45, you’re experiencing process inefficiency, decision-maker access issues, or value proposition problems that need immediate diagnosis. 

Win Rate by Stage

What it measures: Conversion rates between each pipeline stage. 

Red flag threshold: Drop-offs exceeding 50% at any single stage. 

This KPI shows exactly where prospects fall out of your funnel. If you lose 60% of opportunities between demo and proposal, your presentation doesn’t resonate. If prospects vanish after proposal submission, your pricing or terms need examination. This granular view reveals the specific component of your sales engine that’s malfunctioning. 

Customer Acquisition Cost (CAC) Trend

What it measures: Total sales and marketing cost per new customer over time. 

Red flag threshold: Increasing by more than 20% year-over-year without corresponding revenue growth. 

Rising CAC while revenue stays flat or declines means your sales engine is working harder but achieving less. This indicates inefficiencies in lead generation, longer sales cycles, or lower close rates, or often a combination of all three. 

Taking Action When the Warning Lights Flash 

Identifying these broken KPIs is just the first step. The real question is: what’s causing them? 

When your sales are down, and these metrics confirm your sales engine needs repair, start with root cause analysis. Interview lost opportunities, shadow your sales team, and review your ideal customer profile. Often, what seems like a sales problem is actually a product-market fit issue or a targeting problem. 

Your sales engine requires regular maintenance, not just emergency repairs. Monitor these five KPIs monthly, establish baseline benchmarks for your industry and company stage, and investigate immediately when numbers drift outside acceptable ranges. 

Remember: your sales process isn’t broken because your team isn’t working hard enough. It’s broken because a specific component needs fixing, and these five KPIs will show you exactly which ones. 

Tune Up Your Sales Engine with Concept 

Diagnosing the problem is one thing; repairing your sales engine is another. At Concept, we specialize in identifying the root cause behind declining KPIs and implementing solutions that get your revenue back on track. Reach out to Concept today and let us tune up your sales engine.