Want to master your sales process and win more sales? Key performance indicators (KPIs) is your answer. Setting KPIs will act as a guide to success, helping firms determine their performance and progress in the market. Peter Drucker famously said, “If you can’t measure it, you can’t improve it”. In this article, we will look at what KPIs are and how you can use them to master your sales.
A KPI in sales is a quantitative metric your company would use to determine how well a business, department or sales representative is performing. Every level of your business should have KPIs that are tracked to measure your performance at every level. This includes all different departments of your business.
When you are setting KPIs for your business, you must ensure that these KPIs are mapped to your overall business goals and objectives. For example, if your main business goal is to increase your exposure and gain interest from new prospects, you should set KPIs that are aligned with this. Think With Google shares that 95% of leading marketers believe that KPIs only truly matter if they are aligned with a business’s overall objectives.
Here are the crucial benefits that you will get by incorporating KPIs into your business.
KPIs will provide your team with a clear direction and focus. The direction will result in team members focusing on high-value work, increasing their efficiency and improving team morale. McKinsey & Company share that team members with high morale are 8.5 times more likely to stay in their job and 16 times more likely to refer friends to the business.
You will be able to measure how well you are performing with KPIs in place. Whether you set KPIs for your lead generation, team members’ performance or another area of your business, you will be able to track how you are performing.
You will be able to identify the key areas of your business that you should focus on to improve. For example, if you find that you are not meeting your customer retention rate objective, you can now focus on up-selling and cross-selling methods to improve it.
Decisions can be made with objectives in mind, prioritising areas of your business where you are underperforming. KPIs are a crucial part of your sales plan as they will assist the decisions you make during it. Make sure you set up a sales plan, as FinancesOnline shares that 50% of high-performing sales teams have a 12-month plan in place.
The increased data visibility that you will get from setting KPIs will help you identify patterns over time to create better forecasts. For example, your will be able to forecast accurately the seasonal changes in your sales that may affect your business.
KPIs will act as a guide for all the different departments in your business to work towards the same organisational goals. This will result in better efficiency across your whole company.
There are many KPIs that can be set for the different team members in your business.
Setting KPIs such as these will help guide your sales representatives to know what targets they should be aiming to hit. This will help you identify what team members may need added support. Furthermore, setting KPIs will boost your team’s morale as they will have a sense of greater purpose in striving towards these goals.
If these KPIs are set, you will be able to track how your overall sales pipeline is performing as your sales representatives move clients through the sales funnel. This will help sales managers plan for the future and adjust the sales structure in place to get the best performance from their sales team.
The most common and effective way of tracking your KPIs is by using CRM software. CRM software will track your sales performance in real-time, automatically collecting data and presenting it in an accessible way for your business. Discover why CRM software is worth investing in for businesses in today’s climate.
TEB is a sales automation CRM software that will increase your data visibility so you can easily set and track realistic KPIs to boost your performance. See data on all areas of your business to get these game-changing benefits:
Want to see all of these features and more for yourself? Quickly book a demo to see TEB live in action and how it will boost your sales and grow your business.
