How Do We Measure Sales Success?

One of our clients recently asked me for a list of key performance indicators (KPI) they could measure with their sales people. Good question!
Measurement of sales success crosses over many different departments in mostorganizations. It also demands that all the other sales operation ‘components’ be working effectively. For instance, what happens when the sales person makes the sale but shipping doesn’t deliver on time? Or when the sales person learns skills on how to cross-sell into new departments, but only gets compensated on selling to existing clients?
These myriad factors all need to coordinated and focused to ensure the sales representative is ‘running in the direction’ the company wants. Rewarding a rep for selling to an existing client may be diametrically opposed to a corporate strategy to add 25% new accounts to the company in 2017.
So, here are some basic KPI’s you may want to consider measuring within your own organization. Please note these are a fraction of the KPI’s that should be measured, but will give you a good start!

  • Source of leads (where are your sales people finding prospective customers?)
  • Cross-selling conversion (how effectively are your sales people selling additional GS1 products & services to existing customers?)
  • Up-selling (how effectively are your sales people expanding sales with existing customers?)
  • Qualifying (how many sales are being lost in the later stages of the sales process because your sales people didn’t qualify the customer in the early stages?)
  • Are your reps asking the 5 Qualifying Questions of: Budget; Potential; Ownership; Urgency; Timing?
  • What percentage of customers don’t respond after the initial contact or meeting?
  • What percentage of customers move to Quotation stage? ie. are your reps effectively managing the Needs Analysis stage of the sales process or are customers ‘turned off’ at this critical stage?
  • What percentage of customers drop off after receiving your firm’s quotation?
  • Are your reps accurately forecasting their pipeline business? How much ‘judgement’ (+/- %) are your sales managers putting on their reps forecasts?
  • What is your win/loss ratio against each competitor?
  • What percentages of time do you expect your territory representatives to manage? ie. What percentage of time is spent on: Acquiring new business; cross-selling existing business; up-selling existing business; dislodging competitors? What is the ‘norm’ vs. the ‘plan’?
  • What is the percent of ‘repeat’ customers? ie. of 100% of business sold in the previous year, what % are repeat customers and what % is new business? Is this what the firm wants?

These are just a few of questions a top-tier sales organization tracks and measures. Please feel free to add to this list or reach out if you would like additional information or clarity on any of the KPI’s.

Good selling!

Previous post:

Next post: