What is a KPI?

A Key Performance Indicator is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organisations use KPIs at multiple levels to evaluate their success at reaching targets.

High-level KPIs may focus on the overall performance of the enterprise, while low-level KPIs may focus on processes in departments such as sales, marketing or a call centre.

What makes a KPI effective?

A KPI is only as valuable as the action it inspires. Too often, organizations blindly adopt industry-recognized KPIs and then wonder why that KPI doesn’t reflect their own business and fails to affect any positive change. One of the most important, but often overlooked, aspects of KPIs is that they are a form of communication. As such, they abide by the same rules and best-practices as any other form of communication. Succinct, clear and relevant information is much more likely to be absorbed and acted upon.

In terms of developing a set of KPIs, you should start with the basics and understand what your objectives are, how you plan on achieving them, and who can act on this information. This should be an iterative process that involves feedback from all involved.

Are KPIs still relevant?

KPIs often have a negative connotation associated with them. Unfortunately, many business users are beginning to see KPI monitoring as an obsolete practice. This is because KPIs fall victim to that most human of all problems: lack of communication.

The truth is that KPIs are only as valuable as you make them. KPIs require time, effort and employee buy-in to live up to their high expectations.
The real question is what’s right for you? What sales metrics will help you achieve your company goals?

KPI’s are never one size fits all.

So instead of trying to persuade you that certain KPIs are the best, I want to empower you to define the right metrics for your sales team. Then we’ll look at a list of the most common sales KPIs.

To claim your FREE KPIs Worksheet click HERE.

GREAT SALES KPI’S

These can be benchmarked versus target and prior year in all instances. They can apply to the whole business and to individuals.

 Monthly Sales Target (£)
 Orders (#)
 Average order value (£)
 Amount of sales period elapsed (%) versus sales achieved to date
 Current daily run rate (£)
 Predicted outturn versus target (£)
 Daily Sales required to hit target (£)
 Value of orders not yet processed (£)
 Future appointments booked to close business in next 7 days (#)
 Attempted calls (#)
 Completed calls (# and %)
 Enquiry to sale conversion (%)
 Returning customers (#)
 New customers (#)
So, now that you know how to define your sales KPIs, you might also be ready to SET SALES KPI’S THAT DELIVER RESULTS. Just fill out the form and our guide will be on its way to you.

To claim your FREE KPIs Worksheet click HERE.

Follow Us

Share This