As a professional salesperson or perhaps a sales manager you want to know the score. It’s something built into us and part of what makes a salesperson great. I tell people I used to love to mow grass when I was young—absolutely loved it. The reason: I could push that mower 12 feet and turn around and see accomplishment.
As salespeople, we need that feedback. With that in mind, let’s look at a few KPI’s (Key Performance Indicators) every salesperson and manager should be monitoring.
Number of new calls
I’ve said it before and I’ll say it again; if you don’t prospect you’ll have no one to close. The number of new calls is one of, if not the single most important factors in success. How many are you making weekly or monthly? Whatever it is there is a good chance you could make more. But, however many it is—keep up with it. Measure it and try to constantly improve.
Outbound phone calls
I realize not every industry uses the phone to sell, but I like to track outbound phone calls for prospects, new customers, current customers and potential referrals. How much are you talking to the people who can and do buy from you? There’s no excuse not to be able to make multiple calls a day: before you start your sales day, between calls, right before lunch, right after lunch and right before you leave. Make it a habit and measure how many touches you are making by phone.
The goal of all those new calls is to get to presentations. How many are you making? Again, you can manage what you can measure. Know this number, track it weekly and monthly. You should know today how many you made last month and your goal should simply be to make at least one more.
How many of those presentations were successful? How many lead to new business? This is your closing percentage—the number you live and die by. The more calls you make the more sales you make, but if you can increase your closing percentage you can increase your paycheck!
How many dollars are you generating for the company? Again, I’ve said this before: not all sales are good sales. Profitable sales are good sales. Know what you’re bringing in for your organization—just trading dollars for dollars is a waste of everyone’s time.
There you have five KPI’s I track. Note you don’t see sales dollars on there. Too many times people get caught up with sales dollars at the expense of gross profit. Don’t. If a sale is not worth having, let someone else have it. Focus on the good things: meeting new people, sharing your story and making them profitable customers.