Sales KPI’s = KeeP It simple

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Companies and salespeople alike often look at KPI’s in too much depth. It’s a little like baseball stats:

“He hits doubles on sunny days where the temperature is between 62 and 86 degrees when the wind is out of the east against left handed pitchers.”

If you keep your KPI’s simple, it’s easy to not only know what they are on a daily / weekly basis it also becomes far easier to know when you need to make course corrections along the way.

Here are the main ones I recommend for any salesperson in any industry:

Presentation / Proposal / Demonstration Ratio

  • How many calls or door knocks does it take you to get a Presentation / Proposal / Demonstration?
    • Take this number and divide it by the number of Presentations / Proposals / Demonstrations that you do and there is your percentage.

Closing Ratio

  • How many Presentations / Proposals / Demonstrations do you have to do to get a deal?
    • Take this number and divide it by the number of deals that you close and there is your closing %.

Knowing these two numbers will tell you how much work you have to do in a given Day / Month / or Year. Now if you take all of your deals and average them together and find your Average Deal Size you will know how many deals you need to meet your quota. Having this information will allow you to decide whether you are on target to hit your personal income goals depending on your company’s payout for the revenue you generated.

Good luck and happy selling!