Examples of KPI for Sales and Marketing Department: KPI in Sales and Marketing, Measuring Sales Performance: Metrics, Examples, KPIs for Sales Department, KPI for Sales Representative
In this report we define the key performance indicators for sales based on web search data in 2015. For some of the key performance indicators were defined their formulas and calculation examples. In our calculations we used the official statements of Siemens AG and others.
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Examples of KPI for Sales and Marketing Department: KPI in Sales and Marketing, Measuring Sales Performance: Metrics, Examples, KPIs for Sales Department, KPI for Sales Representative
1. Examples ofExamples of
KPI for Sales andKPI for Sales and
Marketing DepartmentMarketing Department
The KPI Examples ReviewThe KPI Examples Review
Copyright 2017 The KPI Examples Review.
http://kpi-examples.blogspot.com/.
2. Introduction
In this report we define the key performance indicators for sales
based on web search data in 2015. For some of the key performance
indicators were defined their formulas and calculation examples. In
our calculations we used the official statements of Siemens AG and
others.
3. 1. List of the 5 Sales KPIs
Based on the web search data in 2015, we define the 5 sales KPIs used
to measure a company's performance:
1). Market share;
2). Conversion rate;
3). Gross margin;
4). Break-Even Point (BEP);
5). Price Elasticity of Demand (PEOD).[1]
Source: "List of the 12 Most Important Sales Metrics and KPIs" (PDF),
http://kpi-examples.blogspot.com/2017/02/sales-metrics-and-kpi-sales-kpi.html.
4. All sales KPIs were divided by the three categories.
The first category of sales KPIs â sales effectiveness measures:
â market share.
The second category of sales KPIs â product pricing indicators:
â gross margin;
â break-even point (BEP);
â price elasticity of demand (PEOD).
The third category of sales KPIs â promotion efficiency measures:
â conversion rate.[1]
5. 2. Examples of Sales KPIs
Market Share
The formula for calculating unit market share is:
Unit market share = (US / TMUS) Ă 100 , (2.1)
where
US â Unit sales;
TMUS â Total market unit sales.[1]
The formula for calculating revenue market share is:
Revenue market share = (SR / TMSR) Ă 100 , (2.2)
where
6. SR â Sales revenue;
TMSR â Total market sales revenue.
The formula for calculating relative market share is:
Relative market share = (SR / SRLC) Ă 100 , (2.3)
where
SR â Sales revenue;
SRLC â Sales revenue of largest competitor.[1]
Example of calculating. Based on the research of global wind
turbine market in 2014 (from Make Consulting, a Danish renewable
energy consultancy[2]
), we can calculate the unit market share for the
company Siemens AG (Table 2.1).
7. Table 2.1. The calculation of unit market share for the company
Siemens AG on the basis of the research from Make Consulting in 2014
(capacity in GW, unit market share in %) 2014
Total capacity of newly installed wind
turbines (global wind turbine market)
52,13
Total capacity of Siemens machines
(newly installed and connected to the grid
wind turbines)
5,63
Unit market share of Siemens AG 10,8
Unit market share = 5,63 / 52,13 = 0,108 or 10,8%.[1]
Source: "List of the 12 Most Important Sales Metrics and KPIs" (PDF),
http://kpi-examples.blogspot.com/2017/02/sales-metrics-and-kpi-sales-kpi.html.
8. Gross margin
The formula for calculating gross margin is:
Gross margin = (R â COGS) / R , (2.4)
where
R â Revenue;
COGS â Cost of goods sold.[3]
Source: "Marketing KPI: Examples of Product Pricing Indicators",
http://kpi-examples.blogspot.com/2016/05/marketing-kpi-examples-of-product-pricing-indicators.html.
9. Conversion rate
The formula for calculating conversion rate is:
Conversion rate = NGA / TNV , (2.5)
where
NGA â Number of goal achievements (sales);
TNV â Total number of visitors who viewed a web page,
advertisement or e-mail.[3]
Source: "Marketing KPI: Examples of Promotion Efficiency Measures",
http://kpi-examples.blogspot.com/2016/05/marketing-kpi-examples-of-promotion-efficiency-measures.html.
10. References
1. The KPI Examples Review, "List of the 12 Most Important Sales Metrics and KPIs",
http://kpi-examples.blogspot.com/2017/02/sales-metrics-and-kpi-sales-kpi.html.
2. WindpowerMonthly.com, "Ten of the biggest and the best manufacturers",
http://www.windpowermonthly.com/article/1352888/ten-biggest-best-manufacturers.
3. The KPI Examples Review, "List of the Best KPI for Sales and Marketing Department: KPI in
Sales and Marketing, Measuring Sales Performance: Metrics, Examples, KPIs for Sales
Department, KPI for Sales Representative",
http://kpi-examples.blogspot.com/2017/02/kpi-for-sales-representative.html.
11. "List of the 12 Most Important Sales Metrics and
KPIs" (eBook)
In this report we define the 12 most important sales metrics and
KPIs based on web search data in 2015. All sales KPIs were divided
by the four categories of indicators: sales effectiveness measures,
customer (crm) metrics, product pricing indicators and promotion
efficiency measures (Chapter 1).
For each of the key sales metrics were defined their popularity in
different countries, their formulas and calculation examples
(Chapter 2). In some of our calculations we used the official
statements of Siemens AG for the fiscal years ended september 30,
2014 and 2013, namely the combined management report (orders
and revenue by region (C3.1), segment information analysis (C3.2),
the consolidated statements of income (D.1)) and others.
"List of the 12 Most Important Sales Metrics and KPIs" (PDF) presented on the web page:
http://kpi-examples.blogspot.com/2017/02/kpi-for-sales-representative.html.