A sales director announced to his team that the company expects sales to increase by 20% next year. From the point of view of salespeople, the current results seem optimal and the target doesn’t seem very realistic. See how it can be accomplished with the help of a simple Key Performance Indicators (KPI) tool.

I've been observing the work of sales teams for many years and I’ve noticed that salespeople are often satisfied with implementing their current sales plans. Ideally, they shouldn’t stop at this, but should strive for further development - constantly assessing their achievements, looking for opportunities to improve and make the necessary changes in their sales process. It may sound like too much to ask for, but every manager would like to have such salespeople on their team.

Do you know your client?

Even the best salespeople sometimes wonder if they’re doing everything they can to achieve their goals. It is worth analysing your activities and their effects from time to time, answering the following questions:

  • Do I know how much my best client buys from me?
  • Do I know how my sales have increased year-on-year in the last three years?
  • How can I further develop our relationship?
  • Do I talk with clients about their needs?
  • What is my competition doing better than me?
  • Do I devote the same amount of energy to acquiring new clients as I devote to regular clients?
  • How many and what new products/services have I introduced to regular clients in the last year?
  • Do I have enough knowledge about my products/services, do I know their strengths and weaknesses?
  • How is my offer different from the competition’s?
  • Do I prepare for meetings with clients?
  • How much time did I invest in my development last year?

This is just an example - you can prepare your own set of questions, depending on your needs and what you want to explore. Analysing your own actions will help you quickly improve your sales efficiency, provided that your actions are planned and systematically monitored.

What is worth knowing about KPI?

The main purpose of such planning is to use historical and current data to improve results, giving you the ability to replace ineffective actions with actions that will increase sales. On the other hand, monitoring aims to assess the effectiveness of actions as compared to your planned goals. KPI (Key Performance Indicators) are a tool for combining planning with monitoring. KPI cover various measurements which help you evaluate a company’s or a salesperson’s performance, and which help you gain information on which areas are inefficient.

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