Thursday 12 February 2015

Sales Key Performance Indicators for Success

“KPI’s – Measurements of sales activities that are vital gears in the success of a sales engine”

What does the term Sales KPI’s mean?
When sales leadership discuss the term KPI it is not always understood by the sales team or sometimes even management itself. To be defined as a Key Performance Indicator within the team it must be:
  • KEY to the future success of the organisation. A KEY is a measure, one of the plates management want to spin. An example could be “how many direct contacts and connections a company has with buyers in a market segment”
  • The KEY is then related back to the sales team PERFORMANCE where it is measured, monitored, quantified and can be understood by all the members of the sales and marketing teams. Linking a KEY to PERFORMANCE could be benchmarking when a sales person connects (phone call, LinkedIn, meeting) and influences (with great content) to an executive level decision maker in a customer segment.
  • Then this KP (Key Performance) will be used as an INDICATOR; where this information will be analysed to model future sales results or sales plans. So in this example, sales management might want to track the amount of time the sales teams spend social selling, the size of their LinkedIn/CRM database, the number of calls and the amount of time they spend influencing executive level decision makers in their accounts, and then set some SMART sales expectations there that can be measured, maybe the prospect to lead ratio, or lead to proposal ratio.
So when sales leadership discuss Key Performance Indicators (KPI’s), the sales team know to focus on indicators as part of their sales role – the team and management will use KPI’s as signposts along the way to focus everyone to spend time on activities that need doing in order for everyone to be successful now and in the future. KPI’s is one of the best ways to keep a sales strategy on track. Planning and laying the foundations are future success leads to great sales outcomes.
Read the full article here

Key Performance Indicators for Sales Success – The Bitter Business

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