7 important kpi indicators for sales system management

Sales managers sometimes encounter confusion and problems in their work. Without real numbers, it will be difficult for them to capture the current state of sales, and come up with specific strategies to help the sales team operate effectively. Instead of relying on ears and eyes, relying on judgment, relying on numbers will help them make more rational decisions.

The best way to evaluate that effectiveness is to apply KPIs, measuring the performance of the entire staff.

1. NEW CONTACTS NUMBER

This is an important KPI that managers need to regularly capture. The number of samples arrived in the last week/month, has the sales team contacted them all, what is the conversion rate, did the numbers increase or decrease compared to the previous week? What is the reason for this decrease?
In addition, capturing this index also helps management to allocate a reasonable number of employees to their staff, if the sample is too small, it is necessary to immediately contact the marketing team for timely solutions. time.

2. COST RATE TO GET NEW CUSTOMERS

Another KPI that needs to be measured is the percentage of costs it takes to acquire new customers. Use this ratio to tailor your approach when communicating with customers. Is your sales process good? Sales team to learn about potential customers before contact or not? Is the current form of contact good (face-to-face meeting, telesale, email, …)

In addition, this metric also helps the team leader to know which employees have good performance by comparing the conversion rates between employees.

If the difference in conversion rates is short-lived, it could be due to an uneven distribution of quality contacts, which is fine. But if it happens continuously, then the problem lies with the other salesperson.

3. SALES BY LOCATION US

By comparing sales by location, including offline stores and online transactions, managers will see where the demand is greatest, and where the lowest, and then explain why. this difference.

If sales in area A are very low, it can be measured that the amount of demand there is too little, you can consider the case of having to relocate the store elsewhere. Also, if there are 2 locations with similar sales and January, try applying the promotion in February and then change direction in March to see which location brings in a good source of revenue.

4. COMPETITIVE PRICE

Although management and owners should not monitor the competitors’ every move, they should also have some concern about the price of the competitor’s product because it will create competitive strategies. forward.
By constantly comparing your prices with those of your competitors, you also know when is a great time to launch promotions, to attract customers more effectively.

5. INTERACTIVITY OF CURRENT CUSTOMERS

Maintaining a good relationship with the customer after the sale is closed is extremely important for long-term business growth. By keeping in regular contact with the customer, and whether there is any help if there are difficulties in using the service, the seller will build trust and affection.
Customers will always know that, at this company, there is always someone to support them when needed. You need to ask your employees to schedule re-contact with old customers, to ensure that customers will not forget your brand and switch to using competitors’ products.

6. EMPLOYEES SATISFACTION

Working in sales requires perseverance, but sometimes your employees feel discouraged. So as a manager, it is necessary to create motivation and joy in working with them.
Ask yourself, are your employees part of a team? Do they agree with the sales process being applied? Collecting employee feedback is essential. Although this KPI is quite difficult to evaluate, because it is emotional in nature. However, ask your employees to rate their job satisfaction on a certain scale, and answer questions to better understand what makes them feel happy and unhappy. happiness.

7. CUSTOMER SATISFACTION INDICATOR

The last important KPI is to measure customer satisfaction with your products and services.
You can ask customers to fill out small surveys to rate their satisfaction on a scale of 0-10. The grades can be divided as follows:

+ (9-10): Customers really like you. This audience will open up new potential customers for you by referring their friends, family, and careers.
+ (7-8): They are relatively satisfied with your products and services. But just stop there.
+ (0-6): They seem to have a neutral attitude, don’t like it or hate it, or can be extremely upset because of the bad experience they’ve had with your product or service.

Send this customer satisfaction survey regularly, but for new customers also be careful not to send them too soon. A reasonable time to send that is from 3-6 months depending on your industry, the speed with which new products are released to replace old products, etc.

Rate the ratio between haters, satisfied people, and people who like you. Is there a way to reduce the percentage of people 0-6 points and increase those from 7-10 points?

Once you’ve mastered the key KPIs above, analyze them thoroughly to gain a better understanding of the current state of operations. Then come up with new improvement steps to be able to develop.

Source: KIEN THUC Kinh TE