Key sales performance indicators are the measures you need to monitor and work according to in order to grow your revenue base. Unfortunately, people don’t know much about the key performance indicators of sales in detail and end up hitting a wall. Things have changed quite rapidly in the domain of inside sales industry and sales performance indicators have also seen a quick evolution.
KPIs are the measures you carefully monitor to evaluate the individual performance of your teams’ inside sales members. KPIs quantify your team’s performance and allows you to maintain certain benchmarks that will help you raise the bar as well as the performance of the individual members and teams.
Key Sales Performance Indicators Quantify Operations & Activities of Your Sales Staff for Improvement
It is important to classify sales performance indicators into two broader categories.
- Lagging Indicators
- Leading Indicators
Starting with lagging indicators, these are the metrics that most growing organizations want to improve. A reason for it is that investors are more interested in lagging indicators. These indicators pictures the sales outputs and results in which investors are pretty interested. Lagging indicators include measures like
- Share of wallet
- New customers
- Growth rate %
- Growth margin in Dollars
And several such indicators. However, it must be carefully noted that these lagging indicators got their name for a key reason. They depend on leading indicators. You work more on your leading indicators and you will see a hike in your lagging indicators.
Lagging performance indicators depend a lot on your leading performance indicators.
Leading performance indicators are mostly measures and metrics that track your sales operations and your daily sales funnel and sales pipeline performance. Your whole sales pipeline is usually constructed around these indicators. For sales leading performance indicators, you can include activities like
- Number of sales calls per week.
- Number of qualified leads your reps are getting from these weekly sales calls.
- Number of leads getting in to a conversion.
- Performance comparisons of your inside sales reps etc.
Till now, you must have understood that these indicators definitely impact your lagging performance indicators. These indicators are the building blocks of your growth strategy and without identifying them and improving them, growth is impossible.
If you dig deeper, you’ll notice that these key indicators will help you not only making better decisions but also executing better strategies. They will help you identify the exact skills required to improve the performance and deliverability of your team members.
Defining your KPIs will help you understand the activities which you and your team members should be spending more time on. Meeting the requirements of growth KPIs will help your individual team members, as well as your sales members. build consistency that your team will require in order to increase the lagging indicators.
Once your team identifies and suggests the KPIs that are important for your business, you won’t be guessing anymore and your evaluation will be solely quantified and measurable.
Key sales performance indicators will make your forecasting practical & easy.
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