This session peels back the onion on your Sales Key Performance Indicators. A Key Performance Indicator or (KPI) is a measurable value that demonstrates how effectively a company is achieving key business objectives. Businesses use KPI’s to evaluate their success at reaching sales targets.
The purpose of the exercise below is to encourage you to analyze your current situation and match this analysis with your new sales goals.
This process will help ensure that the major sales activities are included in your pending sales plan.
Stay focused and let’s do the math… what is:
- Your average 12-Month revenue in dollars and percent. Exactly how much you generated. Don’t forget credit notes, bad debts and deferred payments.
- Calculate your average order size. Is this changing?
- What are your unit sales by product type? Which products sell best? Are they continuing to grow?
- Count the number of customers that order per month. For the amount of customers that order per month, Keep the following in mind; If you have 1 customer that orders weekly (4 times per month), only count them 1 time.
- How many new customers are you averaging per month?
- Calculate your average order size for the new (less than 1-year old) products. What percentage of business is new?
- How many new customers’ where attracted to make a purchase via a promotional campaign?
- What is your Geographic breakdown? A breakdown by sales territory. Which territories generate most/least?
- What is your renewal and existing business? What is your retention/renewal rate? Is this increasing/decreasing? How much is churn?
I have included a Product Sales Goal spreadsheet to keep up with your progress moving forward. Please download if you have already created your own. Yes, there are formulas already embedded for you.