is your only sales kpi you revenue
Why revenue is only a fraction of the story.
Sales figures are, of course, one of the most valuable KPIs to consider. This must be the “big picture” target when considering the effectiveness of your sales team. However, it’s not the only KPI to consider. Dozens of KPI’s that go into evaluating the overall performance of the sales department and its management. Operational Excellence is data based management. Many sales departments are only considering the overall impact of sales revenue. They are not paying attention to the plethora of alternative data streams related to how that revenue is achieved. They are missing some of the most vital KPIs for business growth and management. Generally, Sales teams are lacking when it comes to analysis. Sales people have the gift of the gab and the skills to transform dry copy into content that converts. However, they will never know if their goals are relevant if they do not set the right KPIs.
The KPI Window Dressing
KPIs that are not aligning with an overall business strategy, wastes the businesses time. KPIs must link to business strategy in a substantial way; otherwise they are simply not going to be of benefit to a business. Your KPIs will only remain useful if they continue to deliver mission-critical data that holds relevance to your overall goals.
Going the Easy Route
Some KPIs are always going to be easier to measure than others. The problem for modern business is relying on those data sets that are easier to collect and interpret. Sales figures are the prominent areas that need to be under constant scrutiny, but just because sales figures are easy to collate, they shouldn’t be your only measurement factor.
Just as it’s all too easy to rely on the easiest data to collect regarding your KPIs, the other end of the spectrum is collating too much of the wrong data. While analysis is a valuable tool in the digital age, the assumption that there’s no such thing as too much data is incorrect. If you start trying to measure every element of your most important Sales Team, then you will be presented with an overabundance of data that is time-consuming to trawl through.
KPIs and Your USP
Your business, no matter how many competitors you have, is unique. For a specific business model, Operational excellence experts tailor KPIs specific to the model. If you are simply collecting the same information and data about your KPIs as your competitors are, then you will be wasting time on analysis that may not even be relevant to your business goals. This is commonly seen when new trends for KPI analysis emerge and businesses race to factor those trends into their own analysis.
Only gathering the data from your sales figures is one of the biggest and most common mistakes that brands make when it comes to their KPIs. It is where most sales teams fail in operational excellence. Failing to address the myriad number of alternative and more useful KPIs means that your business is going to be restricted when it comes to moving forward. If you want your business to grow, then it may be time to stop looking so closely only at your sales revenue and looking at the KPIs that are more relevant to your brand.