7 KPIs for sale employees that the business should notice – Part 1
Sales staff is the most important touch point when approaching customers and bringing in revenue for the business. However, building a sales team is not easy with many different KPIs and performance measures. These indicators play an important role in helping managers evaluate and come up with appropriate business strategies.
So how to build KPIs for the sales team to achieve the highest efficiency? Let’s take a look at 7 KPIs applied by many businesses in this part 1 with Bemo.
1. Monthly sales growth
One of the important KPIs that businesses need to build is monthly sales growth. This metric represents the increase or decrease in sales each month. Through that, leaders can easily assess and update the business situation and make appropriate changes in their strategy.
Usually, businesses only rely on quarterly or annual reports to evaluate business performance. This causes delays in catching trends, guessing the business situation to make changes, and providing timely support to improve business performance.
Monthly sales growth KPIs also help sales staff to have specific goals, evaluate their own performance, and then try their best to achieve the set sales.
2. The percentage of profit
This KPI will help managers know the profit margin of the product or service that the business is providing to customers. Thereby, businesses easily come up with a strategy to optimize goods and promote sales. This can be seen as an important indicator for businesses trading in a variety of products and services.
For sales staff, this index is also the basis for offering appropriate promotions and discounts to attract customers.
Orders are metric determined based on the number of closed orders or signed contracts per month per branch, store or salesperson.
If your business owns a chain of stores, this is the ideal metric to measure the performance of each unit. From there, businesses can easily build development strategies as well as different reward policies for each branch. This is also considered a form of effective sales promotion management between branches.
For sales staff, this index allows businesses to assess the performance, strengths and weaknesses of each employee and is the foundation for businesses to make policies, training strategies, and team building. business in line with the goal of sustainable sales growth.
However, businesses should not focus too much on this indicator and ignore other factors, which will inadvertently create negative competitive pressure among employees or even create a lack of quality in the service. service.
4. Potential customers per month
Sales opportunities are always something that businesses seek, especially they often come from potential customers.
With this indicator, managers will keep a close eye on the business’s list of potential customers as well as identify the best opportunities to prioritize reaching them. As a result, the sales department can easily arrange sales opportunities according to the probability of success, as well as the staff to have the necessary data for thoughtful customer care and advice.
In addition, when applying this metric, businesses will know how much the success rate of an order needs to be through email, texting,… on the customer journey and planning. consulting, effective care, increase the rate of return to buy.
5. Revenue target
Target revenue is also an important indicator that businesses cannot ignore in building KPIs for sales staff, because they evaluate the sales earned in a certain period of time, helping managers evaluate employee productivity.
However, when applying this index, businesses need to build for themselves a suitable reference frame such as the revenue report of the quarter, the previous year and the actual situation to give the appropriate target revenue. As a result, sales staff will not feel overwhelmed and discouraged, but will try their best to achieve the goal.
6. Order value ratio
The order value ratio is an metric that determines the price a customer will be willing to pay based on the orders placed. From there, employees can exchange and determine the quantitative value for each potential order.
To do business more efficiently, businesses can combine with other KPIs and price products accurately.
7. Number of calls, emails per month
For managers, the number of calls and emails per month gives them an overview of the level of interaction required in the business process. This index can be broken down into items such as: the number of calls picked up, the number of emails opened, the average time per call, … for businesses to measure and capture the needs of customers well. goods in the process of exchange, buying advice.
Above are the KPIs that businesses can consider when they want to build an effective sales team. A reasonable system of KPIs, in line with the development goals of the business, not only promotes the capacity of employees but also is the foundation for a sustainable business.
Stay tuned to BEMO to learn the key business metrics to increase business performance in the next section.