Sales KPI Template: Measuring Sales Performance

We humans are lazy creatures. We tend to try and do things with the least effort possible and expect to gain the maximum from these efforts. Once we get ourselves organised into groups or organisations with a common purpose, then the expectation on our motivation tends to take on a different shape. This new expectation is that the more motivated we are to achieve the "mission" collectively, then through peer pressure and not wanting to let the side down, we perform at a higher level. Obviously, there will be those who don't quite see it like that and they need more managing, but by and large, organisations operate on that basis. So, once we have everyone more or less motivated to contribute, we then need to somehow identify within each part of the business and in each role, a system of measuring how well we are doing against each other. One very common system operated by both large and medium sized businesses relies on the development of key performance indicators (KPI's) using a KPI Template.

Key - fundamental to the success


Performance - the level at which success is measured

Indicator - the skill or competence which is being measured

Within the sales environment, there are a number of key competencies that can be used to measure sales performance. These are generally prioritised by the Business or Sales Manager depending on whether the role is external or internal sales. The quantifying of performance is then required so that individual sales people can understand what the target performance is within each competence e.g Closing the sale - percentage sales negotiations resulting in a sale.

The KPI's are then listed out in priority with the definition of successful performance against them. This is a KPI Template in its simplest format. There are several different applications for its use:

Sales Performance Measurement
Recruit Sales People
Business Planning
Individual Performance Appraisal
Sales Bonus Management

Sales performance can be measured on an ongoing basis, thereby allowing the manager to monitor actual against target performance in each competence within the sales function. This can assist in identifying areas for training and development.

The interviewing process to recruit sales people can use the KPI Template as a basis for competency based interview questions. This concentrates the discussion on only the key skills and knowledge to do the job.

KPI's are very useful in the business planning process as they identify where the key strengths need to be to operate a successful business. This in turn highlights where key resources need to be allocated.

At the sales person level, the application of KPI's allows a means for self monitoring of individual performance. The team all know what they are being measured against and therefore feedback doesn't produce any surprises.

The allocation of sales bonus can be delivered not only on the basis of achieving quota, but also on measured behavioral competencies.

Sales KPI Template: Measuring Sales Performance

Alan Watson is an experienced Headhunter who works in Aberdeen, Scotland. He offers a unique online sales assessment developed by SHL, the world's largest provider of validated psychometric tools. This combined with an information packed blog on how to improve your sales using simple methods, provides a valuable resource to those wanting to increase sales. Click here to read more []

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