Sales KPI Examples
Optimize your tech company, software development team, or IT department by leveraging these key performance indicators (KPIs) for sales.
Sales Key Performance Indicators (KPIs) have evolved into a state-of-the-art formulation for exacting peak sales performance.
The sales mechanisms begin with structured tools that indicates the status of the performance of products, services, sales management, and sales staff in specified target markets. These tools include:
- Market research
- Sales forecasting
- Sales data analyses
- Sales data visualization
- Comparative competitor benchmarking
- Sales Budgeting
Business owners and entrepreneurs know the importance of KPIs for sales. However, for sales KPIs to be timely, cost-effective, and efficient, data compilation and research should be accurate and shared with all sales personnel.
Elevate Sales Proficiency
In the past, sales managers and sales executives created sales teams to develop competition between sales individuals to strive for the best sales scorecard. This method of scorekeeping for sales took time and was not cost-effective. Sales scorecards were based on the number of products or services sold by each sales team member. This data was then compiled so that each sales team was rated according to the overall performance of the teams.
Today’s sales scorecards are based on initiatives implemented by business owners, sales managers, and sales executives. Business sales initiatives, policies, and goals form a KPI dashboard on which a scorecard’s elements are based. For example, a scorecard is compiled for each sales team member. They can be used for sales performance reviews, weekly or monthly sales meetings, and sales coaching. A generic scorecard might include:
- Generation of new clients
- Interactive generation of additional sales
- Inbound and outbound Sales Development Representation
- Inbound and outbound Business Development Representation
These are qualitative and quantitative metrics that help avoid problems with sales teams’ underperformance and individual sales reps. In addition, tracking KPIs for salesmen and women’s performance offers business owners and entrepreneurs the opportunity to expand their products and services to their customer base.
The Sales KPI Process
Sales KPI examples may be specific to the nature of the business. Thus, examples of Sales KPIs can be quite variable. Within the Sales KPI process lies the ability to define a KPI for each product, each service, and each sales team member, including management and sales executive oversight.
Examples of Sales KPIs for a moderate-sized company that offers industrial equipment sales and services might include cumulative data for heavy-duty equipment like industrial cranes, lowboys, semiconductors, or industrial robots.
However, if the company leases equipment and offers repair services on equipment sold, KPIs for sales would vary and include sales of equipment, leasing agreements, and sales for repairs. Then, KPIs applicable to a sales team would break down according to the type of sale.
Examples:
- Equipment Sales Lease Agreement Sales for Repairs
- Percent
- Sold by
Most often, a business tracks each individual type of sale and quantity sold and sales team members’ sales performance through the use of relational software applications. Accounting software includes modules that detail inventory control related to the cost of sales, sales revenues, and the cost of sales returns. Inventory control software may not track KPIs for salesmen and women since the basis of this accounting module is to calculate the inventory of supplies, products, and related costs.
The use of KPIs in today’s business world are a compendium that reflect the awareness of business owners of the need to implement comprehensive KPIs that refresh business operations. Sales KPIs help business owners maintain a stable customer base and also keep track of their sales teams’ daily performance. When Sales KPIs are a key driver of business impetus, they become an essential part of your sales team. Business owners may face problems implementing Sales KPIs that impact business goals and presence in today’s global target markets. As such, custom business operations require custom sales KPIs.
Talk to Fusion CPA About Maximizing Efficiency
We have built a reputation as having a stellar ability to create custom sales KPIs that improve a sales team performance while tracking innate business operatives. Whether your business is small, large, or a new startup, professional assistance to bolster your sales efforts is readily available at Fusion CPA.
Schedule a Zoom call with one of our friendly team members and let’s discuss how we can help you!