Sales KPI

Sales KPI

Sales department plays the most important role in a business. It decides directly to gain how much sales revenue per year of the company. Attracting and retaining customers are two main functions of a sales department. It is also for the number one objective of it.

The management and human system of the sales department are coordinated together for the purpose of making sales activities effectively and profitably. These are firstly to meet customer demands through appropriate service supply. Secondly to increase sales volume considering a particular period of time. On the other hands, in order to carry out sales activities the sales department has responsibility of seeking appropriate and potential partners. Then to give motivation by proper means to the sales personnel and to train them systematically in the sale activities.

Namely they will learn methods of analyzing the demands of markets, study consumer’s psychology, market fluctuations, prepare sale budgets. In additions, in vision of market development of the company the sales personnel need to learn ways of exploring new markets and back the main objective is to attract and retain customers.

I. KPI examples for sales

1. Sales Rep

• The rate of response / total sent
• Time to answer a request by customers
• The rate of gaining customers
• Number of customers / employees
• Number of average appointments per sale rep
• The rate of sale rep met sales targets
• Average sale turnover/ per sales staff
• Average turnover / customer / sale staff
• Cost to gain new customers
• The replacement sale staff = total salesman recruited / total salesman left
• Total time to recruit and train sale rep to meet sale standards
• Cost of sales force:

2. Sales by phone method

• The average cost per call / per transaction
• Time to talk of an average phone calls
• Average time waited when transiting:
• % answer after time regulated (for example 5 seconds or 3 ring tone).
• Cancellation rate of calls in the meantime
• Number of calls are not connected:
• The rate of resolution in the first call

3. Shop/Retail

• The rate of profit / per shop:
• The rate of profit / capital:
• Sales turnover / location:
• Cost premises / sales turnover:
• Salary costs / sales turnover
• Product selling

4. Market share

• Market share of the company compared with the entire market
• Relative market share
• Compare market share to growth rate.

5. Customer care

• Frequency impact to customers
• Cost of services per customer.
• The rate of service charges / profits
• Pareto rules

6. Customer loyalty

• Total customer lost
• The rate of lost customers lost after purchasing first time
• The rate of customer loyalty loss
• The life cycles of a customer
• The rate of customers back
• The rate of new customer

II. Steps to create KPIs of Sales examples

• Setting up job purpose of Sales department.

• Setting up key responsibilities/key KRAs of this department.

• Setting up elements that how to measure each KRA.

• Setting up KPI of each KRA.

• Summarize all KPIs of each department.

3. KPIs of each position of Sales field

• Sales associate
• Sales assistant
• Sales account manager
• Sales administrative assistant
• Sales analyst
• Sales clerk
• Sales consultant
• Sales director
• Sales engineer
• Sales executive
• Sales manager
• Sales rep
• Sales receptionist
• Sales VP
• Sales supervisor
• Sales training manager

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