3 layers of sales kpis
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3 LAYERS OF SALES KPISBased on www.bscdesigner.com/3-layers-of-sales-kpis.htm
By Aleksey Savkin, bscdesigner.com
BSC DESIGNER
SALES KPIS ON THE INTERNET
• In most cases are simple metrics
BSC DESIGNER
SALES KPIS ON THE INTERNET
• In most cases are simple metrics• It is hard to figure out how to make use of
those metrics
BSC DESIGNER
SALES KPIS ON THE INTERNET
Making “informed decisions” with
KPIs…
BSC DESIGNER
SALES KPIS ON THE INTERNET
Making “informed decisions” with
KPIs…
“Converting data to knowledge” with KPIs…
BSC DESIGNER
SALES KPIS ON THE INTERNET
Making “informed decisions” with
KPIs…
“Converting data to knowledge” with KPIs…
Beyond these buzz phrases it is hard to find the real advantage of using a specific indicator.
BSC DESIGNER
A TYPICAL SALES FUNNEL
Initial request
BSC DESIGNER
A TYPICAL SALES FUNNEL
Initial request Lead
BSC DESIGNER
A TYPICAL SALES FUNNEL
Initial reques
tLead
Meaningful
conversation
BSC DESIGNER
A TYPICAL SALES FUNNEL
Initial reques
tLead
Meaningful
conversation
Qualified lead
BSC DESIGNER
A TYPICAL SALES FUNNEL
Initial reques
tLead
Meaningful
conversation
Qualified lead Sale
BSC DESIGNER
LAYER 1. PROCESS-ORIENTED LAGGING KPIs HELP TO MONITOR THE
PERFORMANCE
Initial request Lead Meaningful
conversationQualified
lead Sale
BSC DESIGNER
LAYER 1. PROCESS-ORIENTED LAGGING KPIs HELP TO MONITOR THE
PERFORMANCE
Initial request Lead Meaningful
conversationQualified
lead Sale
On each stage of this process we can measure a conversion rate in percentages.
BSC DESIGNER
LAYER 1. PROCESS-ORIENTED LAGGING KPIs HELP TO MONITOR THE
PERFORMANCE
Initial request Lead Meaningful
conversationQualified
lead Sale
On each stage of this process we can measure a conversion rate in percentages.
For each stage sale managers tend to use a special name for this conversion rate.
BSC DESIGNER
LAYER 1. PROCESS-ORIENTED LAGGING KPIs HELP TO MONITOR THE
PERFORMANCE
Initial request Lead Meaningful
conversationQualified
lead Sale
Reach Rate, %
BSC DESIGNER
LAYER 1. PROCESS-ORIENTED LAGGING KPIs HELP TO MONITOR THE
PERFORMANCE
Initial request Lead Meaningful
conversationQualified
lead Sale
Reach Rate, % Pas Rate, %
BSC DESIGNER
LAYER 1. PROCESS-ORIENTED LAGGING KPIs HELP TO MONITOR THE
PERFORMANCE
Initial request Lead Meaningful
conversationQualified
lead Sale
Reach Rate, % Pas Rate, % Conversion Rate, %
BSC DESIGNER
LAYER 1. WHAT’S THE PROBLEM WITH THESE KPIs?
BSC DESIGNER
LAYER 1. WHAT’S THE PROBLEM WITH THESE KPIs?
• They are lagging KPIs
BSC DESIGNER
LAYER 1. WHAT’S THE PROBLEM WITH THESE KPIs?
• They are lagging KPIs• They tell us a story of what has happened, but
BSC DESIGNER
LAYER 1. WHAT’S THE PROBLEM WITH THESE KPIs?
• They are lagging KPIs• They tell us a story of what has happened, but• They don’t really tell a manager how to
change a situation.
BSC DESIGNER
LAYER 1. WHAT’S THE PROBLEM WITH THESE KPIs?
• Still, these process KPIs are useful
BSC DESIGNER
LAYER 1. WHAT’S THE PROBLEM WITH THESE KPIs?
• Still, these process KPIs are useful• Put them on a performance dashboard
BSC DESIGNER
LAYER 1. WHAT’S THE PROBLEM WITH THESE KPIs?
• Still, these process KPIs are useful• Put them on a performance dashboard• Use them to monitor the performance
BSC DESIGNER
LAYER 1. WHAT’S THE PROBLEM WITH THESE KPIs?
Here are some more popular examples of process KPIs:
• Quantity of leads needed in sales funnel, #• Conversion rate to sales, %• Conversion to qualified leads, %• Qualified leads close rate, %• Average sales cycle time
BSC DESIGNER
LAYER 2. RESULT-ORIENTED LEADING KPIS HELP TO PLAN A CHANGE
There supposed to be more useful “leading” KPIs!
BSC DESIGNER
LAYER 2. RESULT-ORIENTED LEADING KPIS HELP TO PLAN A CHANGE
• Lists of sales KPIs from the Internet have nothing to do with leading KPIs
BSC DESIGNER
LAYER 2. RESULT-ORIENTED LEADING KPIS HELP TO PLAN A CHANGE
• Lists of sales KPIs from the Internet have nothing to do with leading KPIs
• Leading KPIs are normally the result of a long-term research in a company when some consistent patterns are found
BSC DESIGNER
LAYER 2. RESULT-ORIENTED LEADING KPIS HELP TO PLAN A CHANGE
• Some insights can be concluded using a common sense…
BSC DESIGNER
LAYER 2. RESULT-ORIENTED LEADING KPIS HELP TO PLAN A CHANGE
• Some insights can be concluded using a common sense…
• While some will be a surprise even for business owners
BSC DESIGNER
LAYER 2. RESULT-ORIENTED LEADING KPIS HELP TO PLAN A CHANGE
• Results of the research* confirm that queries from online prospects that were answered within an hour seven times likely generate a qualified lead.
* Harvard Business Review http://hbr.org/2011/03/the-short-life-of-online-sales-leads
BSC DESIGNER
LAYER 2. RESULT-ORIENTED LEADING KPIS HELP TO PLAN A CHANGE
Here we have a good leading KPI for online business:
– Time to answer a prospect’s query, hours benchmark: 1 hour.
BSC DESIGNER
LAYER 2. RESULT-ORIENTED LEADING KPIS HELP TO PLAN A CHANGE
Initial request Lead Meaningful
conversationQualified
lead Sale
Reach Rate, % Pas Rate, % Conversion Rate, %
BSC DESIGNER
Time to answer a prospect's query, hours; benchmark: 1 hour.
LAYER 2. RESULT-ORIENTED LEADING KPIS HELP TO PLAN A CHANGE
Initial request Lead Meaningful
conversationQualified
lead Sale
Reach Rate, % Pas Rate, % Conversion Rate, %
BSC DESIGNER
LAYER 3. KPIs TO FORM A BIG PICTURE OF A SALES PROCESS
• The manager of sales department should not be inside the process
BSC DESIGNER
LAYER 3. KPIs TO FORM A BIG PICTURE OF A SALES PROCESS
• The manager of sales department should not be inside the process
• He or she should be able to see the big picture and..
BSC DESIGNER
LAYER 3. KPIs TO FORM A BIG PICTURE OF A SALES PROCESS
• The manager of sales department should not be inside the process
• He or she should be able to see the big picture and..
• Have various sources (including KPIs) to make informed decisions
BSC DESIGNER
LAYER 3. KPIs TO FORM A BIG PICTURE OF A SALES PROCESS
• The manager of sales department should not be inside the process
• He or she should be able to see the big picture and..
• Have various sources (including KPIs) to make informed decisions
• Here are KPIs that can be used on this level…
BSC DESIGNER
Time to answer a prospect's query, hours; benchmark: 1 hour.
LAYER 3. KPIs TO FORM A BIG PICTURE OF A SALES PROCESS
Initial request Lead Meaningful
conversationQualified
lead Sale
Reach Rate, % Pas Rate, % Conversion Rate, %
BSC DESIGNER
Time to answer a prospect's query, hours; benchmark: 1 hour.
LAYER 3. KPIs TO FORM A BIG PICTURE OF A SALES PROCESS
Initial request Lead Meaningful
conversationQualified
lead Sale
Reach Rate, % Pas Rate, % Conversion Rate, %
Total cost to gain a new customer, $.
BSC DESIGNER
Time to answer a prospect's query, hours; benchmark: 1 hour.
LAYER 3. KPIs TO FORM A BIG PICTURE OF A SALES PROCESS
Initial request Lead Meaningful
conversationQualified
lead Sale
Reach Rate, % Pas Rate, % Conversion Rate, %
Total cost to gain a new customer, $.
Revenue per sales rep, $
BSC DESIGNER
Time to answer a prospect's query, hours; benchmark: 1 hour.
LAYER 3. KPIs TO FORM A BIG PICTURE OF A SALES PROCESS
Initial request Lead Meaningful
conversationQualified
lead Sale
Reach Rate, % Pas Rate, % Conversion Rate, %
Total cost to gain a new customer, $.
Revenue per sales rep, $
Customer lifetime value, $
BSC DESIGNER
Time to answer a prospect's query, hours; benchmark: 1 hour.
LAYER 3. KPIs TO FORM A BIG PICTURE OF A SALES PROCESS
Initial request Lead Meaningful
conversationQualified
lead Sale
Reach Rate, % Pas Rate, % Conversion Rate, %
Total cost to gain a new customer, $.
Revenue per sales rep, $
Customer lifetime value, $
New customers versus returning customers, %
BSC DESIGNER
PUT IT ALL TOGETHER
• Prepare a sales dashboard with average conversion rates over a period of time.
BSC DESIGNER
PUT IT ALL TOGETHER
• Prepare a sales dashboard with average conversion rates over a period of time.
• This will help you to monitor the current performance and warn if you something is going on.
BSC DESIGNER
PUT IT ALL TOGETHER
• Prepare a sales dashboard with average conversion rates over a period of time.
• This will help you to monitor the current performance and warn if you something is going on.
• Add big-picture sales KPIs to your Balanced Scorecard.
BSC DESIGNER
PUT IT ALL TOGETHER
• Don’t forget to map your strategic objectives and link them to KPIs.
BSC DESIGNER
PUT IT ALL TOGETHER
• Don’t forget to map your strategic objectives and link them to KPIs.
• Research historical data of your company carefully to find out the drivers of success of your offer and your product.
BSC DESIGNER
PUT IT ALL TOGETHER
• Don’t forget to map your strategic objectives and link them to KPIs.
• Research historical data of your company carefully to find out the drivers of success of your offer and your product.
• This will provide you with more leading KPIs.
BSC DESIGNER
PUT IT ALL TOGETHER
• Here is how it might be in BSC Designer software.
BSC DESIGNER
THE VALUES OF SOME KPIs WILL BE ENTERED MANUALLY
BSC DESIGNER
SOME VALUES WILL BE IMPORTED FROM EXCEL OR SQL DATABASE
BSC DESIGNER
THE VALUES OF SOME KPIs ARE CACULATED
BSC DESIGNER
SOME KPIs HAVE NON-LINEAR PERFORMANCE FORMULA
AN EXAMPLE OF SALES DASHBOARD IN BSC DESIGNER
BSC DESIGNER
STRATEGIC OBJECTIVES AND KPIS LINKED TO THEM
STRATEGY MAP WITH BUSINESS OBJECTIVES AND KPIs
BSC DESIGNER
HERE IS A SALES FUNNEL
ADD SOME ACTION PLANS
CREATE NOTIFICATIONS FOR RESPONSIBLE EMPLOYEES
BSC DESIGNER
CHECK IT OUT YOURSELF
Check out Sales KPIs in BSC Designer Online:(no registration is needed)
• http://www.webbsc.com/document/kpi/sales-kpisBSC DESIGNER
MORE ABOUT THE BALANCED SCORECARD
Find more insightful articles about the Balanced Scorecard in ”Articles” section at www.bscdesigner.com
BSC DESIGNER
THANK YOU!
Feel free to send us your questions using the contact form at www.bscdesigner.com
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