We do not intend to establish a ranking so that the different departments of a company get involved in the discussion about who is more important but it seems little questionable that the sales area deserves special attention if we want to stay afloat and continue growing.
If we are not able to be competitive in the production of our products and services, our company will hardly be viable. If we are not capable of, for example, producing a screw below the market price, it will be of little use to pamper the sales department.
However, once we manage to optimize our production system, the sales area will be essential to introduce our products to the market and grow the company, since this department is closely linked to business income.
At this point, it is as necessary to optimize our production process as it is to analyze our sales data and that is where the sales KPIs (efficiency indexes) come in.
If this is the first time you’ve heard about KPIs, we recommend that you check this article before continuing .
If you are already clear about what KPIs are, what they are for and how they work , today we want to give you a series of key KPIs for sales management.
What do I analyze
Tools such as CRM for sales management or some software packages for Call Center offer us dozens of data on the progress of our sales, the operation of operators, calls, etc. Sometimes, the amount of information (even in real time) can overwhelm a manager with little experience in KPI analysis and therefore, one of the most common queries is what data to analyze.
Through the design and implementation of sales KPIs or commercial KPIs adapted to the business strategy, we will detect the most valuable and relevant information.
What is a sales KPI
A sales KPIs not only measure your sales representatives / operators by the final result. This analysis would actually be of little use to you. Sales KPIs allow you to analyze the sales process, techniques, etc.
Thus, by analyzing a series of key indicators adjusted to your needs and strategies, you will have real information to make the necessary decisions to optimize the sales process, detect failures in said process and correctly measure the work of your sales team.
Some types of sales KPIs
As we said, there are dozens of analysis indexes of a sales process, but we are going to see some of the most important to carry out a correct analysis.
1. Conversion ratio
A very simple KPI that establishes the percentage of sales in relation to the number of open contacts or calls. This sales KPI is analyzed both individually (operator) and in general (call center). One operator can add a very high total billing and have a very low conversion ratio and another have a very high conversion percentage and bill little each month. If you manage to get the best out of each one by studying their processes and establishing synergies between them, you will multiply sales considerably.
2. Items per sale
Intimately linked to the example that we have just offered you. Finding the sales processes with which our operators are able to sell a greater number of items per sale will allow you to optimize these processes and implement them to obtain maximum profitability from your call center.
3. Daily sales
Measuring accumulated sales and their evolution during certain periods of time allows you to establish seasonal guidelines and even peak sales hours to optimize the work of your operators in an objective way.
4. Customer retention
A relevant and necessary KPI in any sales analysis. This index informs you about the follow-up that salespeople carry out on a customer (a sale) and how that translates into new leads or sales.
These four KPIs, although they may seem simple, are overlooked in many sales analysis work and offer data that is especially relevant for the optimization of the sales department.
Also Read: 7 Keys To The Successful Digitization Of Sales Processes