In this presentation I'm sorting out sales KPIs. Instead of long lists of KPIs that one can find on Internet and that are in most cases pointless, I suggest to have a balanced view on sales KPIs: -- There are KPIs based on conversion rate that are great for process monitoring; -- There are leading KPIs like "Time to answer a prospect's query, hours" that influence sales outcomes directly; -- There are KPIs that help sales managers to see a big picture. Al these sales KPIs make much more sense if used within the Balanced Scorecard What do you think? Does an approach suggested to KPIs in the article helps in comparison to having a plain list of KPIs?

1. 3 LAYERS OF SALES KPIS
Based on
www.bscdesigner.com/3-layers-of-sales-kpis.htm
By Aleksey Savkin, bscdesigner.com
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2. SALES KPIS ON THE INTERNET
• In most cases are simple metrics
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3. SALES KPIS ON THE INTERNET
• In most cases are simple metrics
• It is hard to figure out how to make use of
those metrics
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4. SALES KPIS ON THE INTERNET
Making “informed
decisions” with
KPIs…
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5. SALES KPIS ON THE INTERNET
Making “informed
decisions” with
KPIs…
“Converting data
to knowledge”
with KPIs…
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6. 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.
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7. A TYPICAL SALES FUNNEL
Initial
request
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8. A TYPICAL SALES FUNNEL
Initial
request
Lead
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9. A TYPICAL SALES FUNNEL
Initial
request
Lead
Meaningful
conversation
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10. A TYPICAL SALES FUNNEL
Initial
request
Lead
Meaningful
conversation
Qualified
lead
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11. A TYPICAL SALES FUNNEL
Initial
request
Lead
Meaningful
conversation
Qualified
lead
Sale
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12. LAYER 1. PROCESS-ORIENTED LAGGING
KPIs HELP TO MONITOR THE
PERFORMANCE
Initial
request
Lead
Meaningful
conversation
Qualified
lead
Sale
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13. LAYER 1. PROCESS-ORIENTED LAGGING
KPIs HELP TO MONITOR THE
PERFORMANCE
On each stage of this process we can measure a
conversion rate in percentages.
Initial
request
Lead
Meaningful
conversation
Qualified
lead
Sale
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14. LAYER 1. PROCESS-ORIENTED LAGGING
KPIs HELP TO MONITOR THE
PERFORMANCE
On each stage of this process we can measure a
conversion rate in percentages.
Initial
request
Lead
Meaningful
conversation
Qualified
lead
Sale
For each stage sale managers tend to use a special
name for this conversion rate.
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15. LAYER 1. PROCESS-ORIENTED LAGGING
KPIs HELP TO MONITOR THE
PERFORMANCE
Initial
request
Lead
Meaningful
conversation
Qualified
lead
Sale
Reach Rate, %
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16. LAYER 1. PROCESS-ORIENTED LAGGING
KPIs HELP TO MONITOR THE
PERFORMANCE
Initial
request
Lead
Reach Rate, %
Meaningful
conversation
Qualified
lead
Sale
Pas Rate, %
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17. LAYER 1. PROCESS-ORIENTED LAGGING
KPIs HELP TO MONITOR THE
PERFORMANCE
Initial
request
Lead
Reach Rate, %
Meaningful
conversation
Pas Rate, %
Qualified
lead
Sale
Conversion Rate, %
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18. LAYER 1. WHAT’S THE PROBLEM
WITH THESE KPIs?
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19. LAYER 1. WHAT’S THE PROBLEM
WITH THESE KPIs?
• They are lagging KPIs
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20. LAYER 1. WHAT’S THE PROBLEM
WITH THESE KPIs?
• They are lagging KPIs
• They tell us a story of what has happened, but
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21. 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.
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22. LAYER 1. WHAT’S THE PROBLEM
WITH THESE KPIs?
• Still, these process KPIs are useful
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23. LAYER 1. WHAT’S THE PROBLEM
WITH THESE KPIs?
• Still, these process KPIs are useful
• Put them on a performance dashboard
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24. 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
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25. 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
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26. LAYER 2. RESULT-ORIENTED LEADING
KPIS HELP TO PLAN A CHANGE
There supposed to be more useful “leading”
KPIs!
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27. 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
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28. 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
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29. LAYER 2. RESULT-ORIENTED LEADING
KPIS HELP TO PLAN A CHANGE
• Some insights can be
concluded using a common
sense…
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30. 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
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31. 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
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32. 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.
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33. LAYER 2. RESULT-ORIENTED LEADING
KPIS HELP TO PLAN A CHANGE
Initial
request
Lead
Reach Rate, %
Meaningful
conversation
Pas Rate, %
Qualified
lead
Sale
Conversion Rate, %
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34. LAYER 2. RESULT-ORIENTED LEADING
KPIS HELP TO PLAN A CHANGE
Time to answer a prospect's query, hours;
benchmark: 1 hour.
Initial
request
Lead
Reach Rate, %
Meaningful
conversation
Pas Rate, %
Qualified
lead
Sale
Conversion Rate, %
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35. LAYER 3. KPIs TO FORM A BIG
PICTURE OF A SALES PROCESS
• The manager of sales department should not
be inside the process
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36. 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..
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37. 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
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38. 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…
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39. LAYER 3. KPIs TO FORM A BIG
PICTURE OF A SALES PROCESS
Time to answer a prospect's query, hours;
benchmark: 1 hour.
Initial
request
Lead
Reach Rate, %
Meaningful
conversation
Pas Rate, %
Qualified
lead
Sale
Conversion Rate, %
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40. LAYER 3. KPIs TO FORM A BIG
PICTURE OF A SALES PROCESS
Total cost to
gain a new
customer, $.
Time to answer a prospect's query, hours;
benchmark: 1 hour.
Initial
request
Lead
Reach Rate, %
Meaningful
conversation
Pas Rate, %
Qualified
lead
Sale
Conversion Rate, %
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41. LAYER 3. KPIs TO FORM A BIG
PICTURE OF A SALES PROCESS
Total cost to
gain a new
customer, $.
Revenue
per sales
rep, $
Time to answer a prospect's query, hours;
benchmark: 1 hour.
Initial
request
Lead
Reach Rate, %
Meaningful
conversation
Pas Rate, %
Qualified
lead
Sale
Conversion Rate, %
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42. LAYER 3. KPIs TO FORM A BIG
PICTURE OF A SALES PROCESS
Total cost to
gain a new
customer, $.
Revenue
per sales
rep, $
Customer
lifetime
value, $
Time to answer a prospect's query, hours;
benchmark: 1 hour.
Initial
request
Lead
Reach Rate, %
Meaningful
conversation
Pas Rate, %
Qualified
lead
Sale
Conversion Rate, %
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43. LAYER 3. KPIs TO FORM A BIG
PICTURE OF A SALES PROCESS
Total cost to
gain a new
customer, $.
Revenue
per sales
rep, $
Customer
lifetime
value, $
New customers
versus returning
customers, %
Time to answer a prospect's query, hours;
benchmark: 1 hour.
Initial
request
Lead
Reach Rate, %
Meaningful
conversation
Pas Rate, %
Qualified
lead
Sale
Conversion Rate, %
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44. PUT IT ALL TOGETHER
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45. PUT IT ALL TOGETHER
• Prepare a sales dashboard with average
conversion rates over a period of time.
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46. 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.
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47. 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.
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48. PUT IT ALL TOGETHER
• Don’t forget to map your strategic
objectives and link them to KPIs.
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49. 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.
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50. 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.
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51. PUT IT ALL TOGETHER
• Here is how it might be in BSC Designer
software.
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52. HERE ARE SALES KPIs
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53. THE VALUES OF SOME KPIs WILL BE
ENTERED MANUALLY
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54. SOME VALUES WILL BE IMPORTED
FROM EXCEL OR SQL DATABASE
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55. THE VALUES OF SOME KPIs ARE
CACULATED
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56. SOME KPIs HAVE NON-LINEAR
PERFORMANCE FORMULA

57. AN EXAMPLE OF SALES DASHBOARD IN
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58. STRATEGIC OBJECTIVES AND KPIS
LINKED TO THEM

59. STRATEGY MAP WITH BUSINESS
OBJECTIVES AND KPIs
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60. HERE IS A SALES FUNNEL

61. ADD SOME ACTION PLANS

62. GENERATE VARIOUS REPORTS
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63. CREATE NOTIFICATIONS FOR
RESPONSIBLE EMPLOYEES
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64. CHECK IT OUT YOURSELF
Check out Sales KPIs in BSC Designer Online:
(no registration is needed)
• http://www.webbsc.com/document/kpi/sales-kpis
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65. Find more insightful
articles about the
Balanced Scorecard
in ”Articles” section at
www.bscdesigner.com
MORE ABOUT THE BALANCED SCORECARD
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66. THANK YOU!
Feel free to send us your questions using the contact form at
www.bscdesigner.com