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Use KPIs to make 2019 a brilliant one for sales!

One of the things I get asked a lot is “What are KPIs and do I really need them?”

KPI stands for Key Performance Indicators and YES, you certainly do need them!

But exactly what are KPIs in regards to the sales process

A key performance indicator is simply a measurable value that a business uses to judge how effectively they are achieving their business objectives. So a sales KPI is a something that you use to evaluate how successful you are at achieving your sales targets.

Examples of Sales KPIs

Lets take client proposals. If you know that typically you win 1 out of every 3 proposals you submit and you also know the average value of each proposal, then it would be really easy to work out how many proposals you need to submit to hit target. Therefore, it would make perfect sense to make the number of proposals you submit something that you measure in your business, or in other words make that one of your KPIs.

You then might like to count the number of meetings you have too, so that you can then compare that KPI with the number of proposals you submit. Then you will know how many meetings you need to have in order to submit the right number of proposals to hit target.

This is what I really love about KPIs. They are there to help guide you towards success and once you have the right KPIs in place then all you have to do is the activity to consistently hit them.

How to use KPIs in your Sales Strategy

Now I am fairly certain that the biggest number in your sales strategy is your revenue target for the year, closely followed in importance by your profit target. It might be the other way round, but for measuring sales activity then revenue is the easiest one to use.

Take that number and break it down into the period you use to measure e.g. by month or by week. List all the activities you do in your business such as meetings, proposals, telephone calls etc, and then start to work out how many you need to do of each to hit target.

It really is as easy as that.

The biggest KPI secret

If you struggle to consistently hit a KPI then you will need to take action. This might mean improving your sales process, or it could even be that you change the KPI.

Just remember that when people say selling is purely a numbers game, they are really talking about KPIs. Achieve your KPIs and you hit target.

Simple stuff and highly effective too!