Category Archives: Sales

Attendance numbers for social club functions

Definition:
Number of visits made to social activities, networking events, etc, by a predefined set of employees.

Calculation:
Sum of visits

This KPI is measured as: Number (amount Of Units, Rating, Etc)

Interpretation of results: Depends On The Goals

Strategic objective:
Happy employees make happy customers, which make happy shareholders

Time elapsed since repeat business with category A customers (top 20% or top 10% customers)

Definition:
The time between two deals with Category A customers, which must be predefined. Normally this should be as low as possible, on the other hand: one large order can be more interesting than a lot of small orders…

Calculation:
Time of last order - time of the order before.

This KPI is measured as: Time (e.g. Years, Minutes)

Interpretation of results: Depends On The Goals

Strategic objective:
Increase profitability

Conversion rate of proposals

Definition:
Conversion rate of proposals: rate of the number of proposals that is really converted into sales.

Calculation:
Number of proposal, number of transactions

This KPI is measured as: Percentage (%)

Interpretation of results: Higher Is Better

Strategic objective:
Increase profitability

Orders canceled

Definition:
Number of orders that have been canceled. These cancellations can be categorized by predifined reasons

Calculation:
Sum of orders canceled

This KPI is measured as: Number (amount Of Units, Rating, Etc)

Interpretation of results: Lower Is Better

Strategic objective:
Long-term

Order frequency

Definition:
Number of orders coming in per period (day/week/year).

Calculation:
Number of orders / period.

This KPI is measured as: Number (amount Of Units, Rating, Etc)

Interpretation of results: Higher Is Better

Strategic objective:
Efficient operations

Order entry error rate

Definition:
Rate of orders that has been entered incorrect into the system. The higher the number of incorrect entries, the less streamlined the further process of delivery will pass off. Mind that higher number of errors can be an indicator of a higher pressure of work.

Calculation:
(Number of incorrect entered orders / total entered orders) * 100%

This KPI is measured as: Percentage (%)

Interpretation of results: Lower Is Better

Strategic objective:
Efficient operations

Visits to top customers

Definition:
Number of visits made to a predefined set of customers (high potential, top 10 customers in turnover or profitability, etc.) to maintain and/or build a long term relationship with those customers.

Calculation:
Number of visits

This KPI is measured as: Number (amount Of Units, Rating, Etc)

Interpretation of results: Depends On The Goals

Strategic objective:
Long-term relationship with profitable customers

Returns

Definition:
Percentage of returned products. The cause of the measured returns are worth measuring: are they damaged or broken or is the customer simply not satisfied with it?

Calculation:
Returned products / Total sold products

This KPI is measured as: Percentage (%)

Interpretation of results: Lower Is Better

Strategic objective:
Increase profitability; Customer Satisfaction

Number of contacts with customer during project and post-project wrap-up.

Definition:
Average number of contacts made with customers during a project for that customer. A higher number of contacts makes the organization more, or quicker, adaptive to problems in the project.

Calculation:
Sum of contacts during the defined period.

This KPI is measured as: Number (amount Of Units, Rating, Etc)

Interpretation of results: Higher Is Better

Strategic objective:
Increase profitability

Rate of client relationships producing significant net profit

Definition:
Gives an indication of the profitability of customers. If a certain percentage of customers has no significant net profit, the debtor-risk for the organization will increase.

Calculation:
Relations with significant net profit / Total number of relationships

This KPI is measured as: Percentage (%)

Interpretation of results: Higher Is Better

Strategic objective:
Increase profitability