Indicators KPI for Sales function

ejemplos de KPIs

What is a KPI for commercial?

In the sales sector we could think that the only data that we need to control is basically the amount of sales made and / or the profits obtained by these. However, there is nothing further from reality, there is much beyond these gross and general data that can help us optimize our sales and / or marketing plan. Do not forget that a KPI should allow us to check the progress of the achievement of objectives, and therefore, a KPI for sales should reflect the progress of the key points of our sales strategy.

Why is an important KPI for commercial?

Key performance indicator, that is, a percentage measure to assess the level of performance of a strategy or tactics put in place to meet sales objectives.

How to define or make a KPI?

The first thing you should know is that it will be useless to control numerous KPIs if they are not related to your sales strategy. Moreover, in the face of excess data, you will most likely find yourself in a state of continuous confusion without really knowing what results you should pay attention to. In this sense, we have to be proactive and properly plan the entire process of selecting KPIs and data, for an adequate subsequent analysis.

The realization of periodic reports in spreadsheets with the formulas already established, will help us a lot to optimize our time and work to draw conclusions and improve the process.

But let’s go back to our main objective. To make a KPI we must start from the definition of a clear strategy, its objectives and tactics or actions that we are going to apply. Then, we will see what data we can obtain regarding the achievement of sales through the chosen distribution channels (web, physical store, marketplaces …) and finally we will identify the KPIs that we can calculate in order to assess the results obtained by each one. of the tactics applied.

Make a KPI step by step

Step by step to define your sales KPIs:

What is your sales strategy?
What are your sales goals?
What sales tactics are you going to implement?
How will you measure each of the actions?
What data can you extract?
What data interests you to analyze the results of each action from the point of view of achieving objectives?
What KPIs can you create or calculate with this data?
Know which products are the most sold, those that offer more profit margin, those that are purchased to complete a shopping cart as a “whim”, those that are complementary to others, those that sell better in some times of the year or others, those who buy different user profiles, users who buy with certain recurrence, the number of web visits received per purchase … are some of the data that will help us understand and determine the KPIs to assess the effectiveness of our sales strategy.

Characteristics of a KPI

Something especially important when defining a KPI is to follow the model S.M.A.R.T., that is, to make sure that these results are intelligent, possible and effective meeting the following requirements:

Specific: What exactly do you want to achieve?
Measurable: At what level do you want to reach? Set clear figures!
Achievable: Can you achieve it with the actions proposed?
Realistic: Are you being realistic? Take into account the available resources.
Temporary: In what time should you obtain that objective? Not valid with a short, medium or long term, indicates specific dates.
Examples of KPIs for sales

There are many possibilities and examples of KPIs for sales depending on the nature and organization of the business. It will not be the same to establish the KPIs for an online store, than for a business that sells exclusively through marketplaces or in a physical store. The same will happen if it is a B2B business where the sales force is exclusively focused on a team of people looking for great sales through contacts and meetings. All these are very different realities and require different performance indicators.

Formulas and examples of KPIs

That said, some KPIs that you can value adding to your scorecard to increase the knowledge of the company and achieve greater efficiency and productivity in your sales plan are the following that we explain through their mathematical formulas:

Monthly billing increment = [(Billing of the current month – Billing of the previous month) / billing of the previous month] x 100
Profitability ratio of sales = [(Sales – Costs) / Sales] x 100
Profitability and margin of each product = [(Price of product – Cost of production / Price] x 100
Relative market share = (Company sales / Total market sales) x 100
Stock rotation = (Consumption / Stock) x 100
Loyalty index = (No. of clients x number of total purchases) / 100

Claims ratio = (Claims / purchases) x 100
Return rate = (Returns / purchases) x 100
Ratio of visits per purchases = (Visits / purchases) x 100
Telephone call conversion ratio = (Effective calls / Total calls) x 100
Volume of purchases per customer = (Total purchases / Total customers) x 100
Cost of customer acquisition / conversion = Marketing expenses / New customers
Cost per lead = Investment / Leads
Remember that not all, or even none of these KPIs may be right for your business. If you manage an online store you will have to thoroughly analyze KPIs of web traffic, conversions to sales from different sources of traffic (social networks, SEO, blog, online advertising …), the relationship between fans and true customers, the recurrence in the purchase , the abandoned shopping baskets, the influence of the discount coupons or offers in the increase of sales, the increase of sales by shares with influencers, the cost per customer acquisition, the profitability per client, the profitability for each one of the products you sell, etc.

In conclusion, the first step you must start is to establish the objectives of your sales plan, and from there to configure the sales strategy and tactics to then determine your sales KPIs, their calculation and use, for which they will serve you well. Help our KPIs examples.

Indicators KPI for Sales function

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