Measuring Results: Key performance indicators can help set better goals for sales reps
Measuring Results: Key performance indicators can help set better goals for sales reps
Instead of assuming the worst, however, managers need to take on the responsibility of examining the root cause - or "blockers" - of a rep's poor performance.
By focusing on a few key performance indicators, a manager can better determine if a rep can realistically meet the quotas and financial goals the company has set for him. This is a far more effective approach than simply raising a reps quotas and hoping the increased pressure will get him to perform.
Rather, managers should recognize and identify all of the activities their reps are asked to perform, based on the company's objectives for the year. Some of these activities might include customer meetings, cold calls, proposal writing, lead generation, negotiation, client management, and all of the other activities a rep must perform to reach important sales objectives.
Obviously, the amount of activities a rep must perform limits the time he has to actually sell, and most reps today are only spending 40 to 45 percent of their workweek on sales efforts. This limited selling time, based on numerous activities, could be the primary reason salespeople aren't meeting their quotas.
Key Performance Indicators
After taking into account all of the activities a rep is asked to perform, an effective manager should then identify the activities that would be considered the key performance indicators for their organization. These specific activities should be highly correlated to the production of the ultimate result.
For example, key performance indicators a manager might want to measure on a weekly, monthly or quarterly basis could include:
The number of new prospects a rep contacts per week
The number of new client meetings the rep schedules
The number of proposals the rep writes
By focusing on a few metrics that are non-financial, it's easier to prioritize a rep's workday or workweek and anticipate a rep's ability to meet sales objectives. A manager should choose what he believes are the top two or three key performance indicators and have reps who aren't performing well focus on these areas, based on the objectives for the year.
As an example, one objective of a company might be to increase the number of new businesses in the customer mix. The activities that will help a manager and his sales team meet this objective are prospecting calls, new customer meetings, and proposal writing.
A manager can identify these activities as key performance indicators and better measure results, as they relate to the overall objective, knowing that their reps are focused on the proper activities. Because these activities relate to the overall objective, the manager knows his reps are focused on the proper activities.
Another objective may be to expand the company's share of business with certain customers. Key performance indicators to be measured for this objective are the number of new contacts a rep is establishing within the exiting customer base, and the number of on-site appointments he's scheduling. Both activities force the rep to interface with existing customers, establish new points of contact, and identify new sales opportunities.
Blending Activities
Most companies have multiple objectives for the year, so a manager should be prepared to blend the activities reps are performing so they are dividing and using their time wisely. For example, taking the two examples given above, a manager can break out the activities by assigning targeted goals for each activity every week. More specifically, if a rep is making cold calls, she might be asked to conduct 15 appointments every week.
Following this scenario, the cold calling key performance indicators to be measured would be the number of dials every day and the number of times the sales rep actually speaks to new contacts per day. Additional key performance indicators would include the number of customer appointments each week, the number of prospect appointments every week, and the number of proposals completed each week.
By taking the time to identify key performance indicators, a manager can help his team of reps succeed by focusing on the activities most important to the company's overall objectives. Less time will be wasted on activities that aren't relevant to ultimate results, and manager will be able to better assess the true skills and understanding of his reps.
Measuring Results Key performance indicators can help set better goals for sales reps - To learn more about this author, visit 's Website.
Like this article? Share it with your friends
 |
Free Download - Use Testimonials to Attract Prospects and Win Sales |
Sales managers often rush to judgment if sales reps aren't meeting their quotas, and automatically assume that they either don't have the skills or the understanding to perform.
Instead of assuming the worst, however, managers need to take on the responsibility of examining the root cause - or "blockers" - of a rep's poor performance.
By focusing on a few key performance indicators, a manager can better determine if a rep can realistically meet the quotas and financial goals the company has set for him. This is a far more effective approach than simply raising a reps quotas and hoping the increased pressure will get him to perform.
Rather, managers should recognize and identify all of the activities their reps are asked to perform, based on the company's objectives for the year. Some of these activities might include customer meetings, cold calls, proposal writing, lead generation, negotiation, client management, and all of the other activities a rep must perform to reach important sales objectives.
Obviously, the amount of activities a rep must perform limits the time he has to actually sell, and most reps today are only spending 40 to 45 percent of their workweek on sales efforts. This limited selling time, based on numerous activities, could be the primary reason salespeople aren't meeting their quotas.
Key Performance Indicators
After taking into account all of the activities a rep is asked to perform, an effective manager should then identify the activities that would be considered the key performance indicators for their organization. These specific activities should be highly correlated to the production of the ultimate result.
For example, key performance indicators a manager might want to measure on a weekly, monthly or quarterly basis could include:
The number of new prospects a rep contacts per week
The number of new client meetings the rep schedules
The number of proposals the rep writes
By focusing on a few metrics that are non-financial, it's easier to prioritize a rep's workday or workweek and anticipate a rep's ability to meet sales objectives. A manager should choose what he believes are the top two or three key performance indicators and have reps who aren't performing well focus on these areas, based on the objectives for the year.
As an example, one objective of a company might be to increase the number of new businesses in the customer mix. The activities that will help a manager and his sales team meet this objective are prospecting calls, new customer meetings, and proposal writing.
A manager can identify these activities as key performance indicators and better measure results, as they relate to the overall objective, knowing that their reps are focused on the proper activities. Because these activities relate to the overall objective, the manager knows his reps are focused on the proper activities.
Another objective may be to expand the company's share of business with certain customers. Key performance indicators to be measured for this objective are the number of new contacts a rep is establishing within the exiting customer base, and the number of on-site appointments he's scheduling. Both activities force the rep to interface with existing customers, establish new points of contact, and identify new sales opportunities.
Blending Activities
Most companies have multiple objectives for the year, so a manager should be prepared to blend the activities reps are performing so they are dividing and using their time wisely. For example, taking the two examples given above, a manager can break out the activities by assigning targeted goals for each activity every week. More specifically, if a rep is making cold calls, she might be asked to conduct 15 appointments every week.
Following this scenario, the cold calling key performance indicators to be measured would be the number of dials every day and the number of times the sales rep actually speaks to new contacts per day. Additional key performance indicators would include the number of customer appointments each week, the number of prospect appointments every week, and the number of proposals completed each week.
By taking the time to identify key performance indicators, a manager can help his team of reps succeed by focusing on the activities most important to the company's overall objectives. Less time will be wasted on activities that aren't relevant to ultimate results, and manager will be able to better assess the true skills and understanding of his reps.
Measuring Results Key performance indicators can help set better goals for sales reps - To learn more about this author, visit 's Website.
Like this article? Share it with your friends
 | |
 |
No article feedback found. |
| |
Leave Your Feedback |
 | |
| |||
John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
|||
Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
|||
George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
|||
Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
|||
David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
|||
Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
|||
Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
|||
Casey GollanCasey Gollan, Business Coaching & Mentoring Programs. Add $1 Million to $10 Million in the next 1 to 3 years. Since 1996 Casey has to added hundreds of millions of dollars to businesses. Watch a free video see client results Business Coaching website. - Visit Casey Gollan's Website |
|||
|
To learn more about the Evan Elite Author Program please contact us. | |||
 | |
|  |
Subscribe to 's articles
 | |
|
|  |
 | |
|
| |
 | |||||||
|
 | ||
|
||
 |
||
 |
||
|
| ||
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
|
|
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"
Click Here To Learn More |
|
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
|
 Inspiration Business Plan Business Financing Business Coaching Life Purpose Managing Customer Relationships |
|
 | ||
 |
Top 50 Business Plans
Top Business Plan Blogs | |
 |
Top 50 Productivity Blogs
Top Blogs To Watch In 2008 | |
| ||
 | ||||
| ||||
|
| ||||
| ||||
|
|
|
|
|
||||||||||||
|
Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
|
|
|
| ||||||||||
|
| ||||||||||
|
|
||||||||||