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Looking to boost the performance of your sales team? It’s time to get to know sales indicators and apply them to your routine!

Good sales indicators can be key tools in achieving a data-based (data-based) commercial routine that is more assertive and realistic.

In this article, we take all your doubts about sales indicators and present 5 essential metrics to monitor in the company.

Good reading!

What are sales indicators? 

Sales indicators, also known as Key Performance Indicators, are quantitative and qualitative indicators that help measure the performance of sales teams throughout the sales funnel .

These indicators are predetermined and help to put the business results into perspective.

How to measure performance with sales performance indicators? 

If you are not familiar with sales indicators, we will explain, in a didactic way, how they help to measure the results of a business.

Each KPI operates based on expected indices. If periodically compared with those obtained, the indexes help to understand different scenarios. Let’s go to a practical example?

Suppose your company measures sales volume as a key indicator. Thus, the KPI “Sales Volume” counts with the index of 250 sales/month as the desired value.

In addition to the expected index, the sales indicator also needs to have a detailed calculation. The sales volume, in this case, is obtained from the sum of sales made in a certain period of time — one month, according to the example used.

With this information, you can structure an analysis of sales indicators based on sales volume. Just compare the expected index with the result obtained in a period of one month.

How to evaluate the result? 

Results close to, equal to or higher than expected are positive. Iss///o indicates that the company’s actions throughout the consumer journey are having an effect.

On the other hand, results lower than the expected index must be carefully analyzed. Is there any seasonality involved? Can the external context influence this result? If the answer is “no”, it is time to review internal action plans and rethink the paths taken by the sales team to gain customers.

Advantages of working with KPIs 

In addition to providing a systemic view of the commercial organizational process , work based on sales indicators can bring other advantages, which we highlight below.

Guides the company’s strategic positioning

Companies that work according to corporate strategic planning tend to operate with more synergy and focus. If combined with this planning, sales indicators can make the team’s guidance even clearer and based on practical aspects.

Think, for example, of a strategic plan whose macro objective is to increase sales volume in a year. Indicators can help quantify this increase and measure team performance clearly.

Directs investment of resources

The financial aspect is, without a doubt, one of the most worrying aspects of running a business. After all, all entrepreneurs seek guidance on how and where to invest, whether in crisis scenarios or not. Therefore, having tools that help guide and guide investments is important.

With good sales indicators, organizations can accurately diagnose the company’s bottlenecks and improvement needs. In this way, it is possible to direct investments to sectors that, in fact, need financial support to grow and be optimized.

Motivates sales teams

Finally, we cannot fail to point out the motivation of the sales team as one of the positive impacts of working with sales indicators.

The use of tools in the routine allows salespeople to work better oriented, understanding the stages of their journey that demand more attention, which ones need to be optimized and how they should manage their time, prioritizing the most critical moments.

Sales indicators are useful and effective tools to awaken a sense of challenge in sales teams , encouraging them to find creative and innovative solutions to optimize their processes and work with more motivation.

Provides a rich knowledge base for teams 

In addition to scoring the performance of sales teams in the consumer journey, sales indicators are also a rich source of information and knowledge.

This is because a good management of indicators involves the construction of periodic reports and the comparison between the results obtained in each evaluation round.

The ideal, for companies that seek high performance, is to make the reports and results obtained available for consultation by the entire team. Thus, salespeople and managers can identify areas for improvement, check past performance and make future projections based on truthful information already experienced by the organization.

What are the main sales indicators? 5 KPIs not to lose sight of! 

Now, it’s time to get to know some of the sales indicators that are essential for high performance management. Check out our list of 5 KPIs you can’t miss in your action plan!

1. Average ticket

One of the most popular sales indicators in the market, the average ticket measures the average sales value of a company over a predetermined period.

The average ticket follows the calculation:

Average Ticket: monthly billing (or predetermined period) / amount of sales in the month (or predetermined period)

It is an essential metric for understanding and projecting business growth. Ideally, the value obtained by the average ticket of the business is capable of covering the investments made in favor of conversions, such as marketing and sales costs.

2. CAC

CAC is short for Customer Acquisition Cost, and it is exactly what the indicator measures. Its result shows whether there is a balance between the amounts invested by the company and the return obtained by these investments in the volume of customers acquired.

The CAC calculation is as follows:

CAC = investments in marketing and sales / number of customers conquered in a given period. 

3. Conversion rate

Conversion rate is a very popular sales indicator in organizations working in the digital environment, whether with e-commerce or digital marketing.

Its objective is to point out the effectiveness of prospecting and customer acquisition strategies, showing how many of the potential customers have effectively become leads.

The calculation of the conversion rate is as follows:

Conversion rate = conversions performed / total volume of potential customers

4. Lost customers

Sales metrics also help to score a company’s failures — essential data for organizations seeking exemplary performance.

One of these indicators is “lost customers”, which indicates the number of customers who abandoned the purchase before completing the negotiation process with the company .

In order to get the best out of this indicator, our recommendation is to use it in line with others, such as the average ticket, the CAC and the CSAT, which we will talk about below.

5. CSAT

CSAT is short for Customer Satisfaction Score, or Customer Satisfaction Index. Its purpose is to assess how satisfactory the customer experience was throughout their purchase process.

CSAT surveys are very strategic and can be used at different stages of the sales funnel. It is possible, for example, to apply CSAT questionnaires after a punctual service experience or even after checkout. 

In essence, the CSAT calculation is as follows:

Customers respond to a questionnaire, rating steps in the purchasing process according to a scale (from 1 to 5, for example, considering 1 as “poor” and 5 as “excellent”). After getting the answers from customers, the company segments the results according to the desired analysis.

Examples:

  • if the organization wants to measure the level of satisfaction with the services, it must divide the total “good” or “great” scores by the total number of responses;
  • in case the objective is to measure dissatisfaction, the calculation must be done with the “bad” or “very bad” marks for the total of answers.

Knowing sales metrics can help your team work with more focus and results orientation. And this is the key to a high performance team.

In addition to sales indicators, companies seeking excellent performance need to prepare their teams to perform better, developing all their potential.

Our suggestion is to invest in the PDC, the IEV’s Commercial Development Program . The program creates a customized strategy for your business, allowing your company, over the course of a year, to be ready to overcome challenges!

 

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