The Essential KPIs Every Construction Sales Team Must Track
- Jones Financial Accounts
- Dec 12
- 4 min read
Introduction - KPIs Every Construction Sales Team
In construction and engineering businesses, especially lift companies, M&E contractors, FM providers and refurbishment specialists, the sales department is often misunderstood. Many business owners think a “busy pipeline” equals success. It doesn’t.
Quality, conversion, lifetime value, and margin protection matter far more than volume. A sales department can generate enquiries all month yet still weaken cash flow, harm margins, or overload operations if performance is not properly tracked.
This guide breaks down a CFO-level process for monitoring quantifiable KPIs (numbers that show results) and qualitative KPIs (behaviours, communication, and discipline). We’ll cover service contracts, refurbishments, installations, and additional services, plus how to measure marketing ROI and sales commission effectiveness.
You can also download tools at https://www.jonesfa.co.uk/resources to build your own KPI dashboards.
1. Quantifiable KPIs — The Real Performance Indicators of Sales
These KPIs give directors clear, objective proof of whether the sales team is generating valuable, sustainable revenue, not just “activity.”
1. Pipeline Quality & Accuracy
Why It Matters
Many sales teams overstate opportunities or fail to distinguish between real prospects and “nice conversations.” You cannot plan labour, procurement, or cash flow on guesswork.
Impact on the Business
Better revenue forecasting
Clearer labour planning
Improved cash flow forecasting
What to Review
Pipeline value by stage
Weighted pipeline (probability-adjusted)
Dead leads vs active leads
% of pipeline over 90 days old
Strategy
Introduce a pipeline ageing report
Require sales to update probabilities weekly
Remove “zombie leads” every month
2. Quote Conversion Rate
Why It Matters
Strong conversion = strong targeting and strong communication. Poor conversion often means the sales team is quoting the wrong type of work.
Impact
Higher efficiency
Better gross margin
Stronger customer alignment
What to Review
Conversion rate by value (£)
Conversion rate by volume (#)
Conversion rate by category (service, repairs, installs)
Strategy
Review conversions weekly
Identify weak segments and improve scripts or pricing
Compare conversion by salesperson
3. Sales Cycle Time (Speed to Close)
Why It Matters
Slow sales cycles drain resources, freeze cash flow, and damage utilisation planning.
Impact
Faster decision-making
Better scheduling control
Fewer delays in procurement
What to Review
Average time from enquiry → quote
Average time from quote → sale
Average time from sale → mobilisation
Strategy
Aim for a 48-hour quote turnaround for service & repairs, and <10 days for refurb/install proposals.
4. New Business Revenue vs Recurring Revenue
Why It Matters
In engineering and lift companies, recurring service contracts stabilise cash flow. New installs deliver high revenue but inconsistent timing.
Impact
Balanced revenue = stable long-term growth.
What to Review
New service contract value signed
Contract churn rate
Renewal success %
New business split: installs, refurbs, repairs, service
Strategy
Track service contract margins quarterly (see free templates: https://www.jonesfa.co.uk/resources).
5. Margin on Sold Work (Commercial Discipline)
Why It Matters
Sales teams sometimes win work by discounting, hurting margin without directors knowing until months later.
Impact
Margin protection = stronger business stability.
What to Review
Estimated margin at quoting
Final margin post-completion
Variations emerging from unclear scopes
Strategy
Set minimum margin thresholds (e.g., 30%)
Require FD/Director approval for low-margin quotes
Review margin variance by salesperson
6. Marketing ROI & Cost per Lead
Why It Matters
Marketing is an investment, not a cost, but only if you measure it.
Impact
Helps directors understand which marketing channels actually generate profitable customers.
What to Review
Cost per lead (CPL)
Cost per acquisition (CPA)
Lifetime customer value (LTV) per channel
Marketing spend vs revenue generated
Strategy
Assign every lead to a channel
Track revenue generated per channel
Cut channels with negative ROI
7. Commission Effectiveness
Why It Matters
A good commission scheme aligns sales behaviour with business goals. A bad scheme encourages discounting or low-quality sales.
Impact
Commission shapes behaviour more than training does.
What to Review
Commission cost vs gross profit generated
High-margin vs low-margin incentive balance
Commission clawback on cancellations
Strategy
Redesign commission quarterly to push the right outcomes.
2. Qualitative KPIs — Sales Behaviours That Predict Future Revenue
These indicators explain why sales succeed or fail.
1. Lead Qualification Discipline
Why It Matters
Weak qualification leads to wasted time and poor conversions.
What to Review
Are they speaking to decision makers?
Are budgets discussed early?
Are site surveys arranged quickly?
Strategy
Use a qualification script or scoring system.
2. Proposal Clarity & Professionalism
Why It Matters
Poor proposals reduce trust and damage conversion.
What to Review
Are scopes clearly written?
Are exclusions explained?
Are risks and assumptions included?
Strategy
Introduce a proposal template for installs/refurbs.
3. Communication & Follow-Up Discipline
Why It Matters
The majority of wins come from consistent follow-up, not the first call.
What to Review
Follow-up frequency
Follow-up method (email/phone/meeting)
Time between follow-ups
Strategy
Create a 7-step follow-up sequence for all quotes.
4. Collaboration With Operations
Why It Matters
If sales promise unrealistic timelines or margins, operations suffer.
What to Review
Do they involve PMs early?
Are labour assumptions realistic?
Are surveys booked promptly?
Strategy
Weekly sales–operations alignment meeting.
3. Additional Areas Directors Should Track
Lifetime Customer Value (LTV)
A customer with a £400 annual service contract for 12 years is worth far more than a one-off refurbishment.
Cross-Sell & Upsell Activity
Every call-out and PPM visit is a sales opportunity.
Churn Analysis
If service contract churn rises above 5–10%, review customer experience immediately.
Salesperson Profitability
Not all salespeople are profitable, measure margin they generate, not revenue alone.
4. Building a Complete Sales Department Reporting System
Your reporting should include:
Weekly
New enquiries
Quotes issued
Quotes converted
Pipeline value
Aged pipeline
Monthly
Revenue booked
Margin variance
LTV movement
Marketing ROI
Churn analysis
Quarterly
Salesperson performance review
Commission effectiveness
Pricing strategy review
Download dashboards and templates here: https://www.jonesfa.co.uk/resources.
Key Takeaways
Track both quantifiable KPIs (pipeline accuracy, conversions, margins) and qualitative KPIs (communication, qualification, collaboration).
Margin protection matters more than revenue growth, poor sales discipline destroys profitability.
Marketing ROI must be measured, not assumed.
Blending new business with recurring contracts creates stable, predictable growth.
If your sales department needs a structured KPI dashboard, commission framework or revenue forecast model, JFA can build it tailored to your business. Visit www.jonesfa.co.uk or download our free tools.
Wrapping up today's insights, tomorrow we simplify another accounting challenge.
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