Kpi and analytics in sales

“Our sales have dropped by 15% or more, or we are growing X2, but the efficiency is low…” – these are the requests that owners most often come to us with. And the first question I ask is: “What specific indicators caused such changes and how long have you noticed this?” In most cases, I get vague answers, something like: “People have less money”, “competitors left and everyone came to us”, “people don’t buy because they have nothing to live on”, etc. Yes, all this is true, but… until these conclusions are made based on statistics, you can trust them by 20 percent.

Sales Funnel and Summary Reporting Kpi and analytics

You’ve probably heard a lot about the sales funnel. But as practice shows, 7 out of 10 companies have to rebuild it. The main reason why statistics are built incorrectly is that experts do not describe the sales process. Or even worse, they implement a template solution, justifying it with the traditional “it works in company X, so it will work for you too.” But this is not true.  There is something to add to this point: automation should be implemented only when everything works manually.

And here, comments from people working in large companies usually pour in, saying that all this cannot be done manually. It is possible. In practice, there were examples of companies in which the sales department processed 3,500 leads per day. And everything worked for them. The point is that if you have everything running manually, then when you automate everything, you won’t have to redo anything.

Buying phone number lists involves thinking about buy phone number list important rules like GDPR (in Europe) and TCPA (in the U.S.), which control how personal information is gathered and used. Sometimes, you can legally buy these lists from companies that sell data or marketing businesses, but it’s very important to follow data protection rules and get permission from people before using their numbers for marketing. Using these lists without permission can result in big fines.

What you need to do to set up sales funnel statistics Kpi and analytics

Transfer your sales processon paperin electronic form. Then optimize it: find all the flaws, duplicates and other bugs. Test: Try to see if everything works in the optimized process. Create statistics based on the funnel indicators, i.e. each sales stage . The conversion of each stage for each manager, even if there are 200 of them. Consolidate for each department, territory, the entire company as a whole.

Add the following indicators to your statistics: average check; % of plan fulfillment with % of time elapsed in the period, because each day is 5% of the monthly sales plan; the number of new clients in the database and churn (the number of those who dropped out); average daily sales volume (may not be relevant for all companies); special indicators for your task (% of active client base, etc.). Implement a statistics system. Be prepared to receive correct figures in the second month – this is the average period when you can already rely on the figures. Consider automation: creating all kinds of dashboards, graphs, etc.

Data Analysis for Sales Optimization: Choosing Your Key Performance Indicators

It is important to understand that there are is it really necessary to hire a hubspot partner agency? operational (tactical) indicators that are monitored every day with consolidation by week, month, quarter and year. And there are strategic indicators that are measured once a month, quarter, year. Let’s analyze and understand what suits you.

What are operational sales indicators

Operational sales indicators are those that can be influenced during the day: leads; qualified leads; meetings that took place; exhibited CP; concluded and agreed contracts; accounts; payments and money. This also includes: average check, conversion of each stage and total from leads to sales, percentage of plan fulfillment cumulatively from the beginning of the month, plan/actual for the day.

Working with these indicators is the daily work of the head of the sales department and the commercial director. All these indicators are measured at the level of each manager and consolidated. By departments, territories, countries and in a single consolidated report for the entire company.

Work with these indicators starts from the bottom up. That is, the head of the sales department looks at the indicators of each manager and identifies both. The minimum conversions and indicators and the maximum ones for his department.

What are strategic sales indicators

In my practice, there was a situation when a big work digital bank decided that its strategy. Would be to reinvest all profits for five years into new clients . In order to take 50% of the market in terms of the number of B2C clients. The entire infrastructure, the work of employees and sales were built for this. Of course, the managers tracked and worked with each indicator. But the key one for the bank is the number of new clients per day, week, month, quarter and year. There was a case where the key indicator was the average daily check/sales volume.

Resume

It is important to remember that even in two seemingly identical companies the indicators will be different. They depend on the logic of the owner’s thoughts, management, processes, etc. Since most businesses are different and have different business funnels, the main path to success is laid in the correct selection of key sales indicators and their regular tracking for business management.