# 9 How to calculate KPI for Sales and KPI Template for each role

KPI for sales is understood as an indicator used to evaluate the effectiveness of work. Currently, businesses are using quite a lot of Quality leads will bring high revenue different. However, which KPI calculation method is really the most effective? What is the KPI template for each department in the Sales department? Let's Viindoo Find out in the next post!

## 1.10 ways to calculate KPI for effective sales

### 1.1 Monthly revenue growth index

The sales staff's KPI evaluation process will be based on the monthly sales growth measurement. Monthly sales KPIs measure the increase or decrease in the value of a business's sales for that month. Therefore, Monthly Sales Growth Tracking helps businesses track actual sales status, instead of just relying on later reports.

Setting KPIs for salespeople based on normative sales is an effective KPI setting method that entrepreneurs should apply. Accordingly, the setting of monthly sales revenue goals should be established for each individual, department and work group to promote motivation, goals and help employees maintain performance and efforts in the process. sell

The formula for calculating sales growth index = ((Current month's sales - previous month's sales) / Last month's sales) x 100.

Evaluate employees based on monthly growth

>>>> Reference: How to Build a sales team astute?

### 1.2 Average profit margin

Average profit margin is an important criterion in building KPIs for sales staff. Currently, this criterion has been selected and applied by many businesses. By using this KPI, the sales team can evaluate the profit margin across the entire product/service portfolio that the business is offering.

The average profit margin method is especially suitable for businesses that diversify products/services and apply flexible pricing policies to attract customers. The formula for calculating the average rate of return is as follows:

Average Profit Margin = (Net Income / Sales) x 100

### 1.3 Sales target achievement rate

Sales goal is understood as the goal or result that an individual, work group or business wants to achieve in the course of his or her business. Sales goals can be determined based on many different factors such as: Sales, profits, market share, number of new customers...

The sales target hit rate will show the percentage of the goal achieved that the salespeople set in the first place. This is also an effective method for businesses to measure employee performance. The formula for calculating the sales target percentage is as follows:

Sales Target Reach Rate = (Current Sales / Set Sales) x 100

However, sales goals need to be built closely, reasonably and sufficiently according to SMART factors, businesses can read details and how to build them in the article.

The rate of successful transactions compared to the set target

### 1.4 Rate of successful closing orders

The percentage of successful close orders is a metric that helps managers evaluate the ratio between the number of quotes a business' sales team sends to customers and the number of transactions completed. In essence, this ratio is the total number of sales transactions compared to the number of successful transactions.

The rate of successful closing orders is an optimal KPI calculation for sales staff. Based on this ratio, businesses can determine the time that salespeople (or the entire sales team) spend searching for customers and seizing sales opportunities.

When the percentage of successful closes is low, it means that the potential customer is not a high-quality audience. This can also be because the sales staff and sales department are spending too much time on each transaction

Ratio of successfully closed orders = (Number of successful sales / Total number of sales) x 100

Rate of transactions successfully closed

>>>> See More: What is personal selling?

### 1.5 Sales by contact method

Tracking a transaction from closing to initial stage will help businesses get the most detailed sales data information. By calculating the percentage of sales generated from each contact method, such as email or face-to-face, businesses can equip their employees with the most effective tools to generate sales. generate sales and know which methods are underused or should be avoided.

The formula for calculating sales based on contact method is as follows:

Sales by contact method = (Revenue by contact method / Total revenue) x 100

Revenue received through sales contact method

### 1.6 KPI number of potential customers

The lead count KPI is an indicator that measures the number of leads a business has and focuses on which customer files generate the most sales. Identifying quality leads will help businesses build appropriate and effective sales and marketing strategies, reaching the right customer files.

Marketing experts have analyzed and shown that 20% of real leads bring more value to the business than 60% of virtual leads. Therefore, identifying and focusing on potential customers who are actually interested in products/services is a key element in a business's revenue-raising campaign.

Indicators measure the number of potential customers of the business

### 1.7 Product Performance KPIs

Product performance metrics are tools that help businesses identify products/services that drive higher sales than other items. From there, businesses need to recognize the factors that make these trends appear and why the product/service has a superior sales rate.

Based on these analyzes, businesses can build appropriate marketing programs to increase sales for their products. At the same time, businesses can also take advantage of this opportunity to increase sales of other products/services.

The index identifies the products that bring in high revenue

### 1.8 Monthly number of calls or emails

For salespeople, a monthly number of calls or emails will show the effectiveness of reaching the lead file. This metric can be broken down into the number of calls received by the customer, the number of emails read, the time each call takes the customer to pick up the phone, the number of orders closed through calls and emails.

Effectively reach customers through email, calls

### 1.9 Lead to Sale Conversion Rate

The lead conversion rate is calculated as the number of successful deals per the number of business leads. Based on this indicator, the sales department can review the working process, consider which leads are qualified and the right method to close the deal successfully. In addition, based on the conversion rate of potential customers, the sales department can also evaluate the effectiveness of conveying messages and incentives to customers.

Lead conversion rates should be discussed and analyzed regularly between sales and marketing departments. After all, 20 quality leads are better than hundreds of virtual leads.

Quality leads will bring high revenue

## 2. Sample KPI for each role in Sales department

KPI template for Sales Executive position

 Part KPI Unit of measure KPI/month Agency building Set up and develop agents Agency Guaranteed revenue Guaranteed revenue Coil Manage customer information Control customer information Agency Recover public debts Debt management and recovery Time

KPI template for Sales Executive position

 Part KPI Unit of measure KPI/month Data saving Store business related data File Synthesize and analyze Aggregate quantity: Agents, customers, business... weekly File Selling over the phone Calling existing and potential customers Time Customer care Liaise with customers and agents to answer questions Time Support in debt management and collection Compare business and consumption data of each agent, give the amount of debt each month Time Report build Report buildNumber of completed and incomplete reports Time

KPI template for Sales Manager position

 Part KPI Unit of measure KPI/month Building a sales system Expansion of agents and distributors Agency Ensure the operation of the business system Guaranteed monthly revenue Coil Business data report Business data report Time Debt control Consumption data report Time Recover public debts Report the amount of debt that has been recovered Time Employee manager Evaluate employee performance monthly Time Write a report Number of completed and incomplete reports Time

## How Sales Planning Software can help?

When setting KPI for your team, many tools can help you speed up your process, especially a sales planning software, which helps automate many steps:

• Data Analysis: Sales planning software can analyze historical sales data and performance metrics to identify trends and patterns. This analysis helps in setting realistic and achievable KPIs based on past performance.
• Goal Setting: The software allows sales managers to set specific, measurable, achievable, relevant, and time-bound (SMART) goals for sales teams. These goals can then be tracked against actual performance to measure success.
• Customization: Sales planning software often offers customizable KPI dashboards, allowing managers to tailor KPIs to suit the unique needs and objectives of their organization. This customization ensures that KPIs are relevant and meaningful to the business
• Real-Time Monitoring: Sales planning software provides real-time monitoring of sales performance against KPIs. This enables managers to identify any deviations from targets promptly and take corrective actions as needed.
• Collaboration: Sales planning software facilitates collaboration among team members by providing a centralized platform for setting, tracking, and discussing KPIs. This fosters transparency and accountability within the sales team.

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Above is 9 how to calculate KPI for Sales most effective that Viindoo wants to introduce to businesses. Managers can refer to the article to understand how to calculate KPIs for their business departments. If you have any questions, you can contact us immediately Viindoo to be answered

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Jun Nguyen July 17, 2023