If you're a cannabis processor or cultivator in Ohio, you're probably spending more time selling than you'd like. You’ve hired sales reps, but they’re not producing results fast enough. You’re still the one closing deals, chasing dispensaries, and driving revenue.
The problem likely isn’t your people—it’s what you’re measuring.
Most companies focus on lagging indicators like closed revenue or new accounts. These numbers look good in a report, but by the time they show up, the damage is already done. If you want to scale your team and stop being the bottleneck, you need to shift your focus to leading indicators—the metrics that predict future sales success.
Here are the top sales KPIs you should be tracking. We’ll define each one, explain how it helps you spot your top performers, and show how to calculate it for your cannabis business.
1. Sales Activity Volume
What it is: The number of outbound touches (calls, emails, visits) a rep makes in a given period.
Why it matters: In cannabis, building relationships with dispensaries takes persistence. High activity levels usually correlate with better results. This KPI gives you visibility into who’s putting in the effort—and who isn’t.
How to calculate: Count the number of outreach activities per rep per week.
Example: If a rep makes 50 calls, sends 30 emails, and visits 10 dispensaries, their activity volume is 90.
2. Qualified Leads Generated
What it is: The number of new leads who match your target buyer (e.g., licensed Ohio dispensaries) and have expressed interest.
Why it matters: This shows how well your reps are prospecting and whether they’re targeting the right accounts. A rep who brings in 20 tire-kickers isn’t as valuable as one who finds 10 legit buyers.
How to calculate: Count the number of new qualified leads generated over a set period.
Example: A rep who identifies 15 licensed dispensaries that ask for pricing info or request a sample has created 15 qualified leads.
3. Opportunities Created
What it is: The number of qualified leads that have moved into your sales pipeline as active opportunities.
Why it matters: This measures a rep’s ability to turn interest into intent. Someone who consistently books meetings, drops off samples, or sends out pricing proposals is pushing deals forward—even if they haven’t closed yet. It also gives you a sense of pipeline momentum.
How to calculate: Count the number of new deals or sales opportunities a rep adds to your CRM within a timeframe.
Example: A rep visits six dispensaries and drops off samples after an intro call, and sends out three pricing proposals. That’s nine opportunities created.
4. Active Pipeline Volume
What it is: The total value of open deals currently in a rep’s pipeline.
Why it matters: Your pipeline is a leading indicator of future revenue. If a rep only has $5,000 in open opportunities, you know they’ll struggle to close $50,000 next month. Active pipeline shows you if reps are building enough deal flow to hit your revenue goals.
How to calculate: Add up the dollar value of all open opportunities in each rep’s pipeline.
Example: A rep has five open deals: two at $5K, two at $10K, and one at $20K. Their active pipeline is $50,000.
5. Conversion Rate
What it is: The percentage of qualified leads that turn into paying customers.
Why it matters: This is your closer metric. It tells you who’s best at moving leads through the funnel and sealing the deal. Low conversion may signal poor follow-up, pricing issues, or a mismatch between your pitch and the buyer’s needs.
How to calculate:
(Number of new customers ÷ Number of qualified leads) × 100
Example: If a rep closes 5 deals from 20 qualified leads, their conversion rate is 25%.
6. Average Deal Size
What it is: The average revenue generated per closed deal.
Why it matters: Bigger deals usually mean stronger relationships and higher customer value. This metric helps you project revenue and assess the quality of deals being closed.
How to calculate:
Total revenue from closed deals ÷ Number of closed deals
Example: A rep closes four deals totaling $40,000. Average deal size = $10,000.
7. Sales Cycle Length
What it is: The average time it takes to close a deal from first contact to signed order.
Why it matters: Shorter sales cycles help you close more deals in less time. If one rep closes in 20 days and another takes 60, that difference adds up. It also helps you identify friction in the sales process.
How to calculate:
Sum of all deal durations ÷ Number of closed deals
Example: Three deals took 30, 45, and 60 days. Sales cycle length = 45 days.
8. Customer Lifetime Value (CLTV)
What it is: The total expected revenue a customer will generate over the course of their relationship with your company.
Why it matters: Not all customers are equal. A dispensary that reorders every month for years is far more valuable than one that places a single bulk order. CLTV helps you prioritize long-term partnerships and measure reps by the strategic value of their wins—not just initial order size.
How to calculate:
Average order value × Purchase frequency × Customer lifespan
Example: A dispensary places $5,000 orders every month and stays with you for 3 years. CLTV = $5,000 × 12 × 3 = $180,000.
Final Thoughts
Building a high-performing sales team takes more than good intentions—it takes good data. When you track leading indicators like opportunities created, pipeline volume, and customer lifetime value, you stop reacting to sales results and start shaping them.
If you’re still the one doing all the selling, we get it. It’s hard to let go when growth feels uncertain. But you don’t have to figure it out alone.
Local Leaf Marketing helps cannabis businesses like yours design better sales processes, implement tools like HubSpot CRM, and train teams that deliver consistent results.
You're not the only one stuck in the sales seat—and you won’t be the last. Let’s build a system that helps you finally step out of it.
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Apr 21, 2025 4:24:51 PM
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