Home > Management, Sales leaders, Sales Management > Sales Leaders: Help Your Team Win by Establishing and Measuring Key Performance Indicators (KPIs)

Sales Leaders: Help Your Team Win by Establishing and Measuring Key Performance Indicators (KPIs)

November 13, 2012 Leave a comment Go to comments

Sales Leaders: Help Your Team Win by Establishing and Measuring Key Performance Indicators (KPIs)

Another one of our 5 Keys to Sales Management is to know your numbers.  What I mean by that is to know your sales metrics, sales management key performance indicators (KPIs), success formulas, etc. Let me take them one at a time.

Potential Sales Metrics

In every business that is successful long term the most important metric for

measuring the sales team is, well, sales! Whether sales are measured daily, weekly, quarterly or annually…top line revenue growth is critically import to a company’s health.

Here are eight of the most common sales metrics:

  1. Number of calls/Number of contacts
  2. Conversion rate of leads to sales
  3. Number of new opportunities uncovered
  4. Average order size
  5. Close rate
  6. Sales cycle
  7. Number of proposals issued
  8. Number of proposals won

 

Potential Sales Management KPIs

To be successful in sales leadership one has to inspect what they expect because after all…what gets measured gets done!  Here are eight of the most common sales management KPIs:

  1.  Size/quality of pipelines
  2. Forecast accuracy
  3. Customer satisfaction scores
  4. Customer retention numbers
  5. Sales by product category/Product mix
  6. Margins
  7. Percent of sales team at or above plan/quota
  8. New versus repeat business

Sample Individual Success Formula

The most productive sales leaders I know view themselves as a coach and are constantly seeking new tools, processes and concepts to motivate their salespeople to achieve their personal and professional goals.  I suggest the following six components for salespeople to create their individual success formula:

1)    Monthly revenue or sales quota

2)    Average order size or revenue per customer per month

3)    Close rate

4)    Sales cycle

5)    Number of qualified prospects required in their pipeline

6)    The number of suspects needed to get to the right number of qualified prospects

These six components will help your salespeople know how many hours per week they should be dedicating to prospecting/new business development activities, how many hours they should be dedicating towards account management and how many hours would be available to complete their administrative activities.

 

About these ads
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 75 other followers

%d bloggers like this: