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KPI for Sales

Why using of kpis - key performance indicators - improves your work? and what are the kpis to choose in order to well-test performance of your company and even individual sales staff a specific sales goal. read about this here.
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How do you know if your sales strategy, efforts and / or sales team are successful (or just not)? By prioritizing sales goals that are in line with your business goals and measuring them. Measuring is knowing!

If you don't set goals, you're literally aimless. That's not handy when you're growing your business, right?

Sales KPIs - or Sales Key Performance Indicators - are figures or statistics that you follow to test the sales performance of your company, department or even individual sales staff against a specific sales goal.

That way you know whether you successfully support that goal with your marketing and sales efforts or not. The trick is to choose the KPIs that are most relevant to your industry and business goals.

No idea where to start? The 8 sales KPIs below are a great starting point!

8 sales KPIs to improve your sales

1. Sales KPI for your company: new leads, prospects and opportunities

Every company defines a " lead " or potential customer differently. For one person it is someone who registers for a free demo, for the other one who looks around on the company website for a long time.

Following up on new leads and opportunities is in any case important to ascertain to what extent you or your sales staff contribute to brand awareness, growth and expansion of your company within a certain region. Who achieves his quota? Are the quotas too high or too low?

Also share this info with your sales team so that each sales employee can see how he or she is performing compared to the others. A little competition? That motivates!

If you keep track of this KPI, you can also check whether the marketing of your company is sufficiently profitable. Marketing must help sales by attracting qualified leads!.

2. Sales KPI for your company: monthly sales / new customers

One of the easiest ways to measure your sales success is to compare monthly results : how many new customers bought your products or used your services this month?

This way you can see if your sales performance is increasing or just decreasing. Are you getting worse results? Then always try to find out the cause: is it, for example, a seasonal dip, are sales staff underperforming or have you made the wrong decision?

3. Sales KPI for your company: customer conversion ratio

Another question you have to ask yourself: what percentage of the new prospects that you or your sales people contact actually become customers? In other words: what is your customer conversion ratio or persuasiveness?

That percentage will of course vary from sales person to sales person - that's normal - but if there are really big differences then it's interesting to study this a little better.

The sales people who perform less... do they approach prospects in the right way? The reverse is of course also true: what do sellers who "overperform" do better or differently than others?

You can certainly also use this KPI for various sales techniques, promotions and

to compare materials with each other. For example, which method provides the most customers with: cold calling or a personal sales conversation?

4. Sales KPI for your company: cost per lead / conversion

Everything your marketing and sales teams do to attract new leads and convince new customers costs money: from web design and advertising budgets to social media management and promotional materials.

Usually this is a serious bite out of your company budget. So definitely worth following up!

Cost per lead

You calculate the cost per lead by summing up all your monthly marketing-related costs and dividing this amount by the number of new leads per month.

If your cost per lead drops over time, this may indicate an improved customer experience or brand awareness. Does the reverse apply? Then you may need to fine-tune your marketing strategy and channels.

Cost per conversion

Leads are of course not yet customers. Attracting a prospect is one thing, effectively convincing a prospect to become a customer - a prospect "converting" something completely different.

This often requires extra effort, so the cost per conversion is usually much higher than the cost per lead. You calculate the cost per conversion by dividing the sum of your monthly marketing costs by the new customers / sales that you collect each month.

5. Sales KPI for your company: upselling and cross-selling

The most qualified leads from your company? Those are your current customers! Therefore, keep an eye on how you or your employees perform in terms of upselling and cross-selling and check whether there are " winning combinations ".

If customers who purchase product X also very often have the tendency to add by-product Y, then you can perhaps make this combination a permanent part of your sales process.

Find out when, how and to whom your sales staff successfully upsell and cross-sell and respond effectively to this.

6. Sales KPI for your company: customer profitability

Your customer profitability is the profit that your company makes by serving a certain customer or customer segment during a certain period.

You calculate this KPI by combining your profit and costs for one or more customer relationships. This way you can see how much a customer is worth to your company.

If the costs you spend to attract a customer are higher than the resulting income, then it's time to adjust your business strategy.

This KPI also enables you to compare different customer segments with each other. In this way you can bet more strongly on profitable segments and let go of loss-making segments.

Tip: A good way to increase your customer profitability is to build loyalty with your customers, for example through excellent customer service or a loyalty program.

7. Sales KPI for your company: customer loss

Be sure to also follow how many customers no longer use your products or services. To grow as a company, you have to attract more customers than lose.

Customer loss is, for example, the percentage of customers that haven't purchased or used your products or services for a year.

Customers come and go, that's normal, but of course you want to limit customer loss as much as possible as a company.

How do you do this? By offering excellent customer service and user experience and always being one step ahead of your competitors!

8. Sales KPI for your company: Net Promoter Score

Your Net Promoter Score shows how likely it's that a customer will recommend your brand or service to a friend. You can measure this KPI through interviews and surveys, for example in a follow-up e-mail after a purchase.

There are 3 important values:

- Promoters (score 9-10): loyal customers who smoothly recommend your products and thus ensure extra sales.
- Passionate (score 7-8): satisfied but less enthusiastic customers who ignore your company if they find or receive a better offer.
- Opponents (score 0-6): dissatisfied customers who spread negative information about your company and thus damage your brand image.

How do you calculate your Net Promoter Score? Subtract the percentage of opponents from the percentage Promoters. Also follow this number on a monthly basis. A falling score may indicate a deterioration in customer service or a strong new competitor.

Follow all the KPIs above regularly. Analyze your performance as soon as you have this data and wonder why you're achieving the results that you're achieving. Then determine how you can further improve your sales performance and take concrete actions!

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