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Sales KPI

Sales KPIs

The selling activity in the organization is carried out by the sales-force. Sales management

is the process of attaining the sales-force goals through the activities of planning, staffing,training, leading, and controlling the sales-force or organizational resources. It is imperative forthe management to cultivate and nurture an efficient sales-force towards enhancing the sales

productivity, revenue and sources of funds. It is the most important function of sales

management.

How to make benchmark of sales KPI

Determine sales functions.

Identify sales goals.

Indentify sales tasks.

Establish sales procedure.

Define key performance indicator to perform stated goals, functions, tasks and procedures of

sales.

Sales KPI include KPIs as follows

1.Customer care KPI

Customer careKPIs include KPIs such as frequency impact to customers, the rate ofservice charges/ profits etc.

Customer care KPI

Customer care/ customer service KPI

1. Frequency impact to customers

The number of purchase is the number of customers shopping in a unit time. Frequency impact is the number of care in a unit time.

You need todetermine the frequency and are enough or not. The care with a purpose is alsoimportant to pad for customers, and so you need to plan for thespace-time care accordingly.

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2. Cost of services per customer.

Rate = total costof service / total customers

The let you know how much the investment costfor the customer care. You can compare this rate with the rate of direct competitors to analyze it reasonable or not?

3. The rate of service charges / profits

Rate = total cost of service / total profit.

The rate let you know 1 unit of currencyprofit, you take how many % to customer care.

4. Pareto rules:

Collect 20% of the customers accounted for 80% of your sales.

Review your distribution rate of 20% of customers accounted for 80% of the cost of care for

your customers? If not, you should allocate the cost of customer care for more suitable.

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2.Customer appraisal KPI

They are KPIs related to appraisalcustomer such as number of new customers, average saleper VIP customer etc.

Customer appraisal KPI

Customer appraisalKPI

1. % Sales turnover of new customers:

This rate = turnover from new customers / total sales. The rate indicates what percentage of increased sales of the company from new customers is

how much?

2. Number of new customers

This rate = number of new customers / total customers

3. The average sales per customer per year

This rate = total sales / total customers.

The rate let you know how many sales turnover you gained from each customer? You have any methods to increase revenue per customer or not?

4. Average sale per VIP customer.

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This rate = total VIP sales / total VIP customers.

Compare this ratio to average sales per custome.

5. The rate of profit of a customer

This rate =Net profit / total customers. The rate let you know the average profit that create by a customer.

Who could bring more and less profitable, so you will have policies customer caremorerelevant.

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3.Complaints of customer KPI

They include KPIs such as Complaintsare resolved in the first time, the rate of complaints bysector etc.

Complaints of customer KPI

Complaints of customer KPI

1. Complaints are resolved in the first time.

Formula = total complaintsresolved first / total complaints. You can add more this rate of complaints at second or third times.

2. The rate of rapid response:

The number of rapid response / total complaints.

The rate is calculated through survey about opinions of customers.

3. Number of dispute complaints:

The number of complaints lead to the dispute between the company and customers.

This ratio is measured by the total number of dispute complaints / total complaints.

4. The number of customer complaints

Formula = total customer complaints / total customers.

This rate is as high, demonstrate products or services you have a problem.

5. The rate of complaints by sector

Upon receipt of a complaint, every month, members should collect and classify complaints bysector and based on different causes.

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Then, order them by reduction.

You need tofocus to resolve complaints in order from top down by pareto principle.

4.Market share KPI

They are KPIs related to market shareof company such as market share of the companycompared with the entire market, relative market share etc.

Market share KPI

KPI market share

1. Market share of the company compared with the entire market:

The percentage of sales turnover of the company compared with sales of the entire sector.

2. Relative market share:

That is comparison about sales turnover of the company with competitors strongest.

It let you know your position of company in the market.

3. Compare market share to growth rate.

The company should compare the rateof growth to the increased market shareof othercompanies.

Sometimes, the company increased market share, but the growth rate of less than other

companies, the company needs to review.

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5.Customer loyalty KPI

These KPIs measure customer loyalty of company. Some KPIs are total customer lost, the rate oflost customers lost after purchasing first time etc.

Customer loyalty KPI

Customer loyalty KPI

1. Total customer lost

The total number of customers do not buy your goods again.

Number of customers includes: the number of first customers and customer loyalty removed.

2. The rate of lost customers lost after purchasing first time

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With total customer purchase first time removed / total customer purchases first time.

This rate is low that may be due to some causes: your product is not suitable, good product but

not good advertising.

3. The rate of customer loyalty loss:

With total customer loyalty lost / total customers loyal available.

This is one of the most serious ratio that you need to note: the causes may include products and

services more expensive, new better products with competitive prices appeared.

4. The life cycles of a customer

Formula: a total relationship with customers / total client relationship.

5. The rate of customers back

The rate of customer purchase up 2 / total customers. This rate is high that will let you know your products are attractive to customers.

6. The rate of new customer:

The number of new customers you gain in a time The high rate prove that: either youre expanding a business or you are lost customer loyalty.

6.Shops and supermarkets KPI

Some KPI of this sector such as the rate of profit / per shop, sales turnover / location. These KPIs

measure effectiveness of sale channel of shop or supermarket.

Shops and supermarkets KPI

1. The rate of profit / per shop:

This rare reflects the percentage of the profits of individual shops in each area. You use this rate to compare the level of effectiveness of the store together and the percentage

of overall profits.

2. The rate of profit / capital:

Formula = Net profit/ total capital. The rate review how effectively the profitcompared with the capitalyou have to take.

3. Sales turnover / location:

With total sales of thatlocation compared to other locations.

The rate tell you know any good sales areas and any good areas are not effective.

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4. Cost premises / sales turnover:

With a total land cost / total sales The rate let you know your premises is effective or not or you do not have enough marketing

efforts.

5. Salary costs / sales turnover

This is the total salary / sales

This helps you control the budget of the stores.

6. Product selling

Include a list of product that sell fast or slow. You need to compare this list at the store with different branches

Also, you should see the list of products is selling slowly and find out reasons why.

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7.Sales contact by telephone KPI

These ratios relate to effectiveness of contacting by telephone of salesman.

Sales contact by telephone KPI

1. The average cost per call / per transaction

This KPI help to control the cost of the phone.

2. Time to talk of an average phone calls

Have to control call time that is too long by regulations.

3. Average time waited when transiting:

The number of time that customers must wait to resolve.

The KPI affected by two factors: operator and transfer calls by department;

4. % answer after time regulated (for example 5 seconds or 3 ring tone).

The total number of guests answered out of 3 ring tone to your phone.

5. Cancellation rate of calls in the meantime

The number of calls canceled after the guests have to wait too long.

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6. The rate of sale rep met sales targets

Formula = total sale rep met sales / total sale available. The rate measure the effectiveness of the sales of the company.

7. Average sale turnover/ per sales staff

With total sales turnover of the entire staff / number of sale employees.

8. Average turnover / customer / sale staff

With total sales of sale staff / total customers of each sale staff.

9. Cost to gain new customers

With total costs to gained a new customer.

10. The replacement sale staff = total salesman recruited / total salesman left

Formula = total staff has recruited / total staff as planned.

The rate measure the rotation of staff.

11. Total time to recruit and train sale rep to meet sale standards

The total time for a coaching staff sale achieve the target salesof the company.

12. Cost of sales force:

The cost of wages

Cost of sales / customers (including all tools, the poster for each customer).