The main indicators in sales that need to be monitored

When you're building a sales team, there are several metrics you need to keep a close eye on. Each indicator is very important, so make sure that your department is collecting sales digitization.

The first indicator is percentage of plan completion. If your company doesn’t yet have a sales plan, now is the time to establish one. It should be ambitious enough that it requires work, but also achievable with the right actions. It is also necessary to set a bonus, which can be anything, for the head of the sales department when the plan is achieved. If you don’t have a ROP, then you need to set plans for each manager and set a micro-bonus when this plan is achieved. The bonus may be small, but it makes it clear that the plan is important to you and that you reward managers for doing the right thing.

The second indicator is Margin. Many entrepreneurs underestimate this indicator and tie everyone to turnover. This is a mistake that could ultimately lead to losses for the company. Marginality changes, demand changes, and it may turn out that the turnover is high, the entire commercial unit receives good bonuses, and the company is at a loss, since the margin has dropped to a minimum. This primarily concerns the production and services sector. And, for example, in trading, an entrepreneur does not need to explain the significance of the margin, because he calculates the cost of the purchase and subtracts it from the sales volume. If it is difficult for you to calculate the exact margin, calculate approximately as a percentage. The main thing is that all your employees clearly see that some products generate more margin, while others generate less. And give % of the margin volume to managers and the head of the sales department.

The third indicator is number of KEVs per month, per week, per day. This intermediate funnel metric must grow steadily because it affects the final sales. If you don’t yet count the number of KEVs, then enter this indicator into your daily digitization and start taking actions to ensure that it constantly grows.

The fourth pair of indicators is conversion from application to KEV And conversion from KEV to payment. Conversions are often underestimated when focusing only on absolute numbers. However, the quality of your managers’ work at a certain stage of the funnel is shown by conversion. If a manager has a lower conversion rate than the department, this immediately signals that he is doing the wrong thing.

First conversion from an application to KEV shows how effectively managers process the applications they receive. And this is very important, because… Each application costs money and, often, a lot.

Second conversion from KEV in payment is also important because it shows the effectiveness of the implementation of a key stage of the funnel. Often this step needs to be improved month after month to increase the final conversion rate for the department. I would say that this is the main task of ROP – to constantly work on conversion indicators.

So, we have looked at the 5 main indicators that you need to count and monitor in your sales department.