KPIs (Key Performance Indicators) are a necessary to ensure your sales and marketing strategy and annual budgets are met. KPI's should not be considered as a system for meeting monthly and annual targets, KPIs should also be a way to performance manage your team. Each KPI should be targeted, strategic and measurable.
It’s important to keep a balance with your KPIs. Too few and you’ll miss the potential to maximise your business impact within the industry, too many and you’ll run the risk of complicating your staffs’ sales objectives. Be clear and concise, always keeping your business strategy in mind when setting KPIs and know what to set forward to get the best results from your staff. You also need to be aware of balancing the types of KPIs you set for all-rounded results. Just focusing on financial targets alone can leave your business under represented within the industry, giving your competitors the advantage.
Focusing all of your staffs’ energy on financial KPIs can be a common trap that some companies fall into. It is vital to encompass your businesses’ core values into your KPIs, always keeping best-practice clear and present in your staffs’ actions. Your company’s KPIs can be rounded out with objectives that address behaviour, activity and good business practices. An excellent example of this is the expectation of networking events, two per month is a reasonable industry standard and this will build a strong industry presence and set your business and staff up for future sales.
A true sales person is driven by financial targets. Always set individual budget goals, which as a team total the annual sales budget. The fact that every member of your team is responsible for meeting the business’ sales budget will create a sales force that is focused and fosters a goal-orientated team.
Retaining business you have is one of the simplest and most-often overlooked component of sales. Maintaining what you have is about working smarter not harder. An average retention KPI would be reasonable to maintain from 60-80%, dependant on your business.
For tailored advice on setting your sales team KPIs, contact the team at Conversion Management, who will work with you on developing targeted, strategic and performance-measured objectives.
Nicole Bates, Managing Director, shares sales strategies and solutions for your hospitality business.
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