I have spent some time recently looking at Sales Representative Profitability and the types of analysis that can be done to make firmer business decisions. Another method is the use of KPIs. KPIs stand for key performance indicators which are measurements a business takes to monitor performance.
In setting up a performance based sales organization, managers and small business owners can create KPIs for their sales representatives. According to the KPI Mega Library, there are a few related to the sales representatives. These can be categorized in 3 ways:
In setting up a performance based sales organization, managers and small business owners can create KPIs for their sales representatives. According to the KPI Mega Library, there are a few related to the sales representatives. These can be categorized in 3 ways:
- Day-to-day sales activities:
- # of average appointments per sales representatives
- Time to answer a request by customer
- # of customers per sales employee
- Sales revenue measurements:
- Average sales revenue per sales person
- Total costs to gain a new customer
- Sales team performance:
- Average sales turnover per sales staff
- % of sales representative that met or are above quota
- % of sales representatives that have met sales target
- Total sales of sales staff / Total customers of each sales staff
It takes continuous measurements of these KPI to understand how well your sales team can performance as well as how much they can improve. After several measurements you can start looking at trends. This is the easiest way to analyze the performance and changes.
don't forget about looking at sales budget vs actual, days in each stage of the sales cycle as a suspect/prospect/target moves through the sales process, and the current sales pipeline / funnel
ReplyDeleteI must say you have a good list of KPIs. Another note is that these KPIs are good for performance monitoring. In other words they track what already works. I believe the most challenging task is to come up with result-oriented KPIs that will help to focus on achieving certain results in sales.
ReplyDeleteAlso, we have a case study about controlling productivity of sales manager with KPIs:
http://www.bscdesigner.com/controlling-productivity-of-sales-managers-with-kpis.htm I'd like to know your opinion about it.