Kpi development and implementation for sales manager

Almost any business is related to sales. And how successfully the sales system is set up depends primarily on the managers. To assess the quality of their work, it is customary to use kpi. According to market experts, the introduction of kpi in the company allows you to increase profits by 30%.

Key performance indicator - key performance indicators for personnel. Moreover, universal indicators do not exist, at each stage of the development of the company they are different and, as a rule, are determined by the head. Kpi for a sales employee is what he should first focus on in his work.

Keychains are developing key indicators, management. Responsible persons ensure that kpis reflect the strategic objectives of the department. The process is quite complex, often experts from outside are involved in it. The employees of marketing mix have the relevant experience and will help you at any stage.

Why implement kpi system for sellers

A sales manager is not a position where you can get wages for hours spent at work. Here dynamics, speed of decision making, desire to work for results are important. 

Company introduction:

  • Motivates staff to achieve goals;
  • Allows you to understand the difference between the real situation and the approved plans;
  • Makes it possible to evaluate the results of personnel;
  • Allows you to enter individual responsibility for the achieved indicators and, accordingly, set the size of wages.

Kpi key indicators for trade department managers

  • Profit brought by the company.
  • The number of calls, meetings, other activities.
  • Average order check.
  • Lead response time.
  • The number or value of closed transactions in comparison with the plan.
  • Conversion of warm customers to customers.
  • The number of repeat orders.
  • The average number of actions required to close a lead.
  • The number of activities compared to the number of closed transactions.
  • The ratio of won and failed transactions.

The list is not exhaustive. Kpis are introduced in stages: for example, first 4 indicators, six months later, 2 more, etc. At the same time, they are guided not by a specific time period, but by the needs of the business.

Main stages of kpi implementation

  • Definition of goals, deadlines.
  • Formation of a project team consisting of full-time employees and marketing mix specialists.
  • Developing a global strategy, drawing up a long-term plan to achieve a specific goal (for example, entering a new market throughout the year).
  • Splitting a global goal into functional areas and specific goals.
  • Formation of a kpi system for managers.
  • Development of a rating scale.
  • Identification of priority indicators.
  • The choice of formula for the derivation of kpi.
  • Introduction of documentation and automation of calculations.
  • Implementation of the system in the team.

The simplest way to make calculations is an excel spreadsheet. A variety of programs are also used. In addition, it is important to consider ways of financial and non-financial rewards for the results achieved.

Thinking about introducing a kpi system in a company, but don’t know where to start? Consult by phone with our staff member. Initial consultation is free.

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