Key Performance Indicators that Manage Sales Success
Key performance indicators (KPI) are the measurable parts of each step along a sales representative’s activity funnel. Each KPI naturally aligns with the activity a sales representative does every day. For example, “leads” are the direct result of lead management activity. Specific monthly targets are set for each KPI. By managing activity toward the established targets, you will begin to see patterns of activity that drive results. More importantly, it will help validate the KPI targets. By applying more or less lead activity at the beginning of the funnel, you will be able change your opportunity outcomes. By becoming better trained and more efficient in each of the steps, your probability of success will also increase outcomes.
As an example: 100 leads could generate 70 first contacts, which result in 50 client call planners completed, which in turn creates 25 signed orders that result in 20 resigned negotiated agreements, and 20 client satisfaction surveys completed to ensure everything had gone as expected with the client. Keep in mind that these KPIs are only examples.
Action Steps | Key Performance Indicators | Sales Objectives |
Lead Management | Monthly Cumulative Leads Report | To proactively manage a lead generation program that increases the sales representative’s ‘Return on Time Invested’ by effectively identifying and generating enough prospective clients to reach 100 per cent of sales targets every month. |
First Contact | Client Contact Report | To build a relationship with the prospect to make them feel at ease during their decision-making process, and to complete a pre-needs assessment to determine the right service(s) to further engage the client in the decision-making process. |
Qualify | Client Contact Report | To fully understand the client’s needs through a consultative discovery to ensure the highest return on possible service offerings that align with client requirements. |
Pitch | Signed Agreements | To present a service(s) solution to the prospect based on the identified needs from the previous steps and to ensure that it follows the need-feature-benefit process of consultative selling. |
Negotiate | Client Contact Report | To proactively reach-out to prospective clients who have not been able to make a purchase decision after the service presentation. The object of this call is to assist the client by answering questions and removing any obstacles they may have. |
Client Satisfaction Call | Satisfaction Survey | To reduce the probability of “buyer’s remorse” by ensuring there is complete alignment between the client’s pre-signing expectations and post-signing experience. |
Logan Mathieson is a sales representative at Velsoft.