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HowtoCreateetteralesKPIs
PostedJenniferLund(http://www.superoce.com/log/author/jennifer/)on19eptemer,2016(http://www.superoce.com/log/createetter-sales-kpis/)-NoComments

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(http://www.superoce.com/log/create-etter-sales-kpis/)
PostsummarforcreatingettersalesKPIs:
Anideaisorn
WhatareKPIs?
DenesalesKPIsasActivities

Managingsaleshasnevereenmorechallenging.
Accordingtoa2012surve(http://www.salesleadershipalliance.co.uk/wp-content/uploads/2013/02/The-Challenges-Facing-alesManagement.pdf)ofalesDirectorsilentdge,49%ofsalesdirectorsfeltthat,althoughdealsareclosing,ittakesaverlongtimetodoso.
22%reportedalostpipeline(http://www.superoce.com/log/sales-pipeline-management-tips/)astheiriggestchallenge.

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(http://www.superoce.com/log/wp-content/uploads/2014/03/clip_image0022.jpg)
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ForalesManagers,thepressuretoringintherevenueismuchharderthanitwasinthepast(http://www.superoce.com/log/three-was-tonurture-leads-and-get-the-est-out-of-our-prospects/).Inthissituation,eingaletoreacttomarketdnamicsiscrucial.Withoutaclear
overviewofourusiness,itecomeseventoughertopredictourfuturesalesandtogiveguidancetoourorganizationandour
emploees.
ForalesRepresentatives,thereisastrongsenseofever-increasingdemandstoringinthenumers.utsalesrepsareoftenleftto
themselvestogureoutexactlhowtoreachtheirtargetsandwhattoolstouse(http://www.superoce.com/log/3-was-to-get-started-withdigital-sales/).Theresultishomemadespreadsheetsandlistsandastruggletomaintainasolidpipeline.
Giventhistpeofsituation,howcansalesmanagersandsalesdirectorsturnthetide?

AnIdeaisorn
ImaigfanoftheP90xseries(http://www.eachod.com/product/tness_programs/p90x.do)homeworkoutsfromeachod.Thewhole
programiscreatedinsuchawathatifoufollowit,thechancesareverhighthatouwillsucceed.Theiggestsuccessfactorsformearethe
plan,theactivitiesandthemeasurements.Theworkoutlasts90dasandis6dasaweek.IknowexactlwhatIneedtodoforaworkoutever
da.AndforeachworkoutIdo,IhavetologmrepsandtheweightthatIusedforeachactivitintoaspecicworksheetthatlookslikethis:

(http://www.superoce.com/log/wp-content/uploads/2014/03/clip_image0041.jpg)
TheonlwatoimproveistoseewhereIamfromweektoweek.TheworkoutsheetshelpmetostafocusedontheactivitIneedtodoandI
alwashaveatargettoworktowardsinordertoeetter.
Andthen,itsuddenlstruckmetheotherdathatthissameconceptcouldalsoeappliedtothecreationofalesKPIs.

WhatareKPIs?
MostorganizationsworkwithKePerformanceIndicators(KPIs)thathelptheorganizationmeasurehowwellthearedoing.
AtpicalKPIinmostorganizationsisthesalesudgetthatspecieswhatrevenueeachsalesrepresentativeisexpectedtoringhomeduringa
givenperiod.
Ofcoursethisisavercentralandimportantgoaltofocuson,utwhathappensifthatgoalisnotmet?Whatisthereasonforlackofresults?
Whattpeofactionisneeded?ThiscaneverhardtodetermineiftheKPIsarenotdesignedtherightwa.
Imaginethreetpicalsituations:

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A.ThetatusMeeting.Thesalesmanagerandthesalesrepresentativeconducttheirmonthlstatusmeeting.Thesalesrepisehindudget,
utexplainshowcloseheistosigningadealwithacustomer.Closingthisdealwouldmeanthathewouldreachhissalesgoalforthequarter.
Mostofthemeetingecomesfocusedonthisprospect,utfewotheractivitiesareagreedupon.
.Thealesudget.Thesalesdepartmentispreparingnextearssalesforecast.Theforecastiscreatedlookingatthecurrentsalesactivit,
cominedwithpreviousearsactivitiesandtheperformanceofindividualsalesrepresentatives.Thereisageneralfeelingthattheudget
seemsrealisticutalsoastrongsensethattoomuchguessworkhasgoneintoit.
C.TheMarketing/aleslameGame.Thesalesmanagerandmarketingmanagerarediscussingthereasonsforthelackofsales.Theales
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departmentclaimsthatMarketinghasnotdoneenoughtoringinsalesreadleads.Marketingclaimsthereareenoughqualiedleads,ifonl
aleshadfollowedup.Allinall,thereisageneralfrustrationthatitshardtodenewhatactiontotake.
Allofthesethreeexamplesarenotuncommoninmanorganizations.Andtheoftenhaveonethingincommon:TheKPIsaredenedonlas
results,notasactivities.

DeneKPIsasActivitiesNotonlasFinancialGoals

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(http://www.superoce.com/log/wp-content/uploads/2014/03/clip_image0061.png)
Resultsarethecornerstoneofalludgetingandmeetingthesalesudgetiswhatmatters.However,fromwhatwevelearnedovertheears,
theestperformingsalesorganizationsaretheonesthatarealetoreaktheirsalesprocessintoindividual,measuraleactivities
(http://www.superoce.com/log/one-great-wa-to-grow-our-pipeline/).
Thepointisthatmostsaleshappenasaresultofcertainpredictaleactivitiesanddeclineinsalesismostoftenduetonegligenceofthese
activities.Herearesomeexamplesofwhatactivit-asedKPIscouldlooklike:
Completingxnumersofsalesmeetingswithnewprospects(http://www.superoce.com/log/sales-meeting/)/existingcustomers
Callingxamountofpotentialcustomers
Conductingxamountofproductpresentations
endinge-mailstoxamountofexistingcustomers
endingoutxnumerofwrittenoers
Conductingxnumeroffollowupcalls
Notalloftheseactivitieswillnecessarilleadtoanactualusinessdeal,utacertainpercentagewill.ettinggoalsforourindividualsales
activitiesandkeepingtrackofthemwillgiveouarangeofpositiveeects:
Improvedsalesmanagement.Knowingtherelationshipetweenouractivitiesandourresultswillgiveoumuchstrongertoolsformanaging
oursalesorganization,conductingsalesreviews,prioritizingfutureactivitiesandforecastingsales.Intwowords:ettersales.
Practicalsalestools.Asasalesrepresentative,ougetmuchmorepracticaltoolstocarroutourwork.ecauseourworkisrokeninto
activitiesitecomesmucheasiertogetstartedandperforminourwork.
Moreecientdialogue.Thefollow-updialogueetweensalesmanagersandsalesrepresentativesisimprovedsignicantlwhenitspossile
tousetheamountofconductedactivitiesasanelementinthereview.Thesameisalsotrueforthedialogueetweensalesandmarketing
orientedfunctionswithinanorganization
Allofthesethingstogetherwillresultinhigherandettersales.Asanaddedenet,eciencandemploeesatisfactionwillmostlikel
increaseaswellasthegeneralqualitofcooperationetweenalesandMarketingfunctions.

NowitsYourTurn
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ettingupouractivit-asedsalesKPIsisverdependentonourspecicareaofusiness,ourproductsandservicesandoursales
organization.DeterminingwhichsalesKPIsarerightforourequireansweringtwocentralquestions:
1.Whichcustomertpesdoouhave?
2.Whichsalesactivitiesareappropriateforthesecustomertpes?
Onceouknowourcustomertpesandsalesactivities,oucanstarttosettargetsforeachactivitinrelationtoeachcustomertpe.Hereisa
simplewatomoveforward:
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1.Maptheactivitiestothecustomertpes.Lookatoursalesactivities(http://www.superoce.com/crm/sales-features/)oneone.tart
determininghowrelevanttheactivitisinrelationtoeachcustomertpe.Forinstance,someactivitiesmaefocusedonringinginnew
customers,whereasothermaetargetedatexistingcustomers.

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2.etactivittargets.Forrelevantactivities,setatargetforhowmanactivitiesouexpectoursalesorganizationtoperformona
weekl/monthl/quarterlasis(seeexampleelow).Onceouhavesetourtargetsforourorganization,oucanstarttoreakitdown,so

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eachsalesrepresentativehasindividualtargets.

(http://www.superoce.com/log/wp-content/uploads/2014/03/clip_image0081.jpg)
3.etupasupportsstem.etupasstemtoallowsalesrepstoinputtheiractivities.ThiswouldpreferaleaCRMsstem
(http://www.superoce.com/crm/all-in-one-crm/)thatisasharedresourceforallsalesandmarketingemploees.
4.Monitor,reviewandadjust.Onceouhaveestalishedthesstem,useittomeasuretheperformanceofoursalesactivities.lookingat
therelationetweenactivitiesandactualsales,oucanstarttoadjustwhatactivitiesaremostrelevantinthefutureandoucanadjustour
targetsaccordingl.

Conclusion
TogetthemostoutofoursalesKPIs,herearethethreemainpointsthattokeepinmind:
1.aseourKPIsonactivities,notjustresults
2.Mapourcustomertpesandouractivities
3.ProvideoursalesorganizationwithsimpletoolstosupportourKPIs
KPIsareagreatwatomeasureandimprove,uttheareonlhelpfuliftherepaidattentionto.GettoknowoursalesKPIsandreviewour
dataweekl(http://www.superoce.com/log/secrets-to-sales-success/).Paattentiontoantrendssothatoucanreactappropriatel.Itisalso
helpfultoincludethesalesteamintheprocessandreviewwitheachteammemeronceaweeksothatoucanspotanlagsinperformance
earlonandealetocorrectquickl.eforeouknowit,ouwillndthatoucanactuallchangethefuturecourseofoursales.
WhatkindofKPIsdoouusetomeasuresales?
LearnmoreaouthowCRMcanhelpourusinesswiththefreewhitepaperelow.(http://www.superoce.com/resources/guides/sales-kpiguide/)

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RelatedPosts:
(http://www.superoce.com/log/sales-quota/)
alesQuota:Atep--tepProcessforHittingourTargets(http://www.superoce.com/log/sales-quota/)
Thesecrettohittingoursalesquotaliesinhow
(http://www.superoce.com/log/coach-our-sales-team/)
HowtoCoachouralesTeamforuccess(http://www.superoce.com/log/coach-our-sales-team/)
alesrepsthatreceiveatleastthreehoursofcoaching

ales

AoutJenniferLund
JenniferLundistheDirectorofMarketingatuperOce.Jenniferlovesallthings
digitalmarketingandworksoutoftheuperOceheadquartersinOslo.Youcan
(http://www.superoce.com/log/author/jennifer/)connectwithJenniferonTwitter@jenniferlund(https://twitter.com/jenniferlund).
ViewallarticlesJenniferLund
(http://www.superoce.com/log/author/jennifer/)

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