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 for
the 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 care KPIs include KPIs such as frequency impact to customers, the rate of
service 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 to determine the frequency and are enough or not. The care with a purpose is also
important to pad for customers, and so you need to plan for the space-time care accordingly.


2. Cost of services per customer.
Rate = total cost of service / total customers
The let you know how much the investment cost for 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 currency profit, 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 appraisal customer such as number of new customers, average sale
per VIP customer etc.
Customer appraisal KPI
Customer appraisal KPI
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.
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 care more
relevant.
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3. Complaints of customer KPI
They include KPIs such as Complaints are resolved in the first time, the rate of complaints by
sector etc.
Complaints of customer KPI
Complaints of customer KPI
1. Complaints are resolved in the first time.
Formula = total complaints resolved 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 by
sector and based on different causes.
Then, order them by reduction.
You need to focus to resolve complaints in order from top down by pareto principle.
4. Market share KPI
They are KPIs related to market share of company such as market share of the company
compared 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 rate of growth to the increased market share of other
companies.
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 of
lost 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
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 profit compared with the capital you have to take.
3. Sales turnover / location:
With total sales of that location compared to other locations.
The rate tell you know any good sales areas and any good areas are not effective.
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.
6. Number of calls are not connected:
The number of incoming calls but can not connect because telephone is busy or tailoring.
7. The rate of resolution in the first call
The rate of resolution as customer satisfaction in the call first.
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8. Sales rep KPI
These ratios relate to effectiveness of sales representative staff such as the rate of response / total
sent, time to answer a request by customers.
Sales rep KPI
Sales rep KPI include KPIs as follows:
1. The rate of response / total sent
Formula = total customer feedback / total information sent to customers.
This rare measure the effectiveness of direct marketing of sale rep.
The program of direct marketing can be message sent, email .
2. Time to answer a request by customers
For case the time to answer may arise long, this kpi is useful to respond quickly to customers.
3. The rate of gaining customers
The percentage of customers gained / the total customers have been exposed.
In addition, the percentage of customers gained / total client feedback also is useful.
Note: the number of customers have received feedback = total number of responses and not
respond.
4. Number of customers / employees
The number is the total number of clients on / NV sale staff numbers.
This mean that 1 sale staff gained or served how many customer.
5. Number of average appointments per sale rep
Formula = total appointments average each customers individual sale rep.
The rate measure difficulty level in convincing customers and the ability to persuade each sale
rep.
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 sales of the company.
12. Cost of sales force:
The cost of wages
Cost of sales / customers (including all tools, the poster for each customer).