What is it? KPI for a sales manager is the performance indicators of his work. With their help, you can understand how well your employee does the job, what benefit he brings to the company. It is also an excellent motivation tool.
Which ones to choose? There are several dozen key performance indicators. Most of them are quantitative, that is, they can be measured in numbers, but qualitative KPIs are also used.
The article explains:
What is a sales what you will get inside the engineer database department KPI
Pros and Cons of Implementing KPIs for Sales Managers
Types of KPI for a Sales Manager
Sales Funnel and Types of KPI for Sales Managers
KPI in the Pipeline scheme for a sales manager
Criteria for choosing KPI for a sales manager
Algorithm for developing a KPI system for a sales manager
Services for calculating sales manager KPI
5 Scenarios for Using Neural Networks to Increase Website Conversion by 40%
Download for free
What is a sales department KPI
To understand the importance of this indicator, it is necessary to define what a KPI is.
So, KPI (key performance indicators, KPI) is a tool that can be used to monitor and evaluate the work of people, groups, departments and companies, and it also helps in assessing the implementation of the strategy. In essence, these are numerical performance indicators that help measure the degree of achievement of goals or process optimality, namely: effectiveness and efficiency. Each department independently determines the KPI level for the entire team or specific work units. Before developing the KPI, the management determines the company's development strategy, assigns roles and functions to each department, and sets tasks for each person on the staff to fulfill.
Performance indicators should be measurable. They should make it clear what successes a person has achieved during their time on the job.
For example:
KPI indicators of the order processing manager: application processing speed, number of processed requests, etc.;
KPI indicators for a sales manager: number of contracts concluded, number of shipped lots, paid goods, etc.
All the data obtained is collected together and subjected to careful analysis. On this basis, the manager determines some planned value. Naturally, employees should not only meet the indicators set by the plan, but also exceed it. For successful work, those who have distinguished themselves can be awarded, stimulating others to similar efforts.
What is a sales manager's KPI
Statistics show that such an innovation in companies as tracking key performance indicators has a positive effect on the work process. Employees become more motivated. Understanding that high quality work will be appreciated has a great effect on the team. The manager cannot help but like such a system. With its help, he clearly sees the progress and regression in the work of each of his subordinates.
Of course, it is quite difficult to organize KPIs at an enterprise where many processes have been going on for years. It will require serious and focused work from everyone in the job hierarchy, from board members and top managers to outsourced specialists.
Many employees do not understand at all why it is necessary to implement KPI for a sales manager. There is no need to waste time on explanations, but it is better to organize the work of one of the company's departments in a new format for 3-4 weeks in a test form. It is desirable that the work of this department be closely related to the financial activities of the organization (we are talking about a production workshop or a product sales department, for example).
Having developed the KPI and implemented the system into work, the current process should be monitored. Some points will have to be corrected right on the spot, some should be taken into account and brought up for discussion at the organizational meeting. In any case, KPIs should make the employee bonus system transparent, competently demonstrating how the quality of work affects subsequent remuneration.