Core KPI’s You Should be Measuring

Posted by Climatic Comfort Products on 2/10/16 1:53 PM

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In sales, it’s all about goals.

Sales goals, new customer goals, traffic goals, you name it. If your goals are the destination, KPI’s, or Key Performance Indicators, are your landmarks.

 


 
Why use KPI’s?
Have you ever climbed a mountain? Or a national monument? Or maybe just a really tall flight of stairs? Tackling the whole thing can be a daunting task, but it’s easier in manageable chunks. Take it just one step at a time.
 
 
That’s what KPI’s are. Reaching that quarterly sales goal may seem impossible at times, but if you know how many jobs on average you need to complete in a week in order to reach your goal, it takes the pressure off and makes the goal feel more doable.
 
Okay, but what exactly do I measure?
You’ll want to measure two major kinds of KPI’s. We’ll split them up into “Lagging” KPI’s and “Leading” KPI’s. The difference is simply that Lagging KPI’s track what has already happened and Leading KPI’s track the actions you’ll need to take in order to secure the goal.
 
Lagging KPI’s
These are measured “after the fact.” Lagging KPI’s tend to get more attention because they’re the metrics that go into reports to executives and shareholders.
  • Sales
  • New Customers
  • New Leads
  • Web Traffic
 
Leading KPI’s
Leading KPI’s can be tracked during the process as opportunities are being created and the pipeline is being built.
  • Sales calls made per day/week
  • Contacts created per week
  • Percentage of contacts that become leads
  • Conversion rate from leads to sales
 
If you’re looking to boost the metrics in your Lagging KPI’s, focus on improving your performance in leading KPI’s. The better you and your sales team get at your most important Leading KPI’s, the better your Lagging KPI’s stack up.
 
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Measuring KPI’s Has All-Around Benefits
Lead to Better Execution
When your sales team is clear on which of their KPI’s need to improve, they’ll spend more time concentrating on these areas, especially if they know their compensation is tied to their performance. Identifying and measuring KPI’s will lead to behavior change and skill development.
 
Hold Team Members Accountable
When KPI’s are visible to the team, it’s easy to compare who is in the lead. This will spur a little friendly competition and lead to better Leading KPI’s. It will also keep the team more consistent with their actions, such as making contact with 10 new people a day.
 
Outline Coaching Opportunities
Effective coaching starts with Leading KPI’s. Measuring these will take the guesswork out of evaluation and will give you the chance to train each sales person specifically on what they need help with. Continued measurement of each person’s KPI’s provides quantifiable tracking on their performance and will show where they improve and what they need to work on.
 
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KPI’s will give help you break down your goal into “I-can-do-this” segments and give you and your team the opportunity to perform at a higher caliber.

 

So, what KPI’s are you measuring?



 

Topics: Sales