return on investment (including expenses on mailings, presentations, loyalty programs and discounts);
status of accounts receivable (current and overdue);
average purchase size.
When developing and implementing key performance area code philippines mobile indicators (KPIs) for B2B sales managers, there are a number of important factors to consider to ensure the system functions properly. Here are some of them:
Employee KPIs should be aligned with the company's long-term goals.
Only those indicators that the employee can actually influence are taken into account.
Each indicator must have a quantitative assessment: percentages, rubles, units of goods, points, time intervals, etc.
The indicators should be easy to calculate so that employees can independently track their KPIs and adjust their work if necessary.
Individual indicators should accurately reflect the manager's activities. In calculations, it is important to minimize the influence of uncontrolled external factors. The stronger the dependence of the coefficient on the actions of a specific employee, the more effective the methodology will be.
KPI for a B2B Sales Manager
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The more carefully the manager approaches the selection of key performance indicators (KPI), the more effective the management system will be. Therefore, it is important to conduct a detailed preliminary analysis of the department's work. It is necessary to determine which actions of employees contribute to the achievement of planned goals. For further calculations:
Forecast your income for the selected period, taking into account the average check, marginality and conversion of your business.
Divide the expected profit by the average check to determine the number of transactions required to fulfill the plan.
Estimate your average conversion rate to determine the number of leads you need.
Divide these figures by the number of working days in the period under consideration.
This will give you an approximate volume of daily customer interactions, which will help you create a metric-based plan.
After this, you can start creating a KPI matrix. It is best to format it as a table, listing the key indicators. Let's consider how this might look in practice.
KPI for a B2B Sales Manager
The weight of each indicator is determined in accordance with its significance for the overall performance. The total weight of all indicators must be exactly one. Three levels are set for each indicator:
basic - the minimum acceptable level at which work is considered ineffective if it is not achieved;
normal - the level necessary to maintain a positive balance of the company;
target - the optimal level that is ideal to achieve.
These levels are recorded in a table that is provided to the employee. At the end of the reporting period, the actual results are entered into the corresponding cells. This data is used to calculate the KPI index of each indicator using the following formula:
Index = (Actual Value - Base Value) / (Normal Value - Base Value) * 100%
Next, by summing the products of the indices by the weights of the indicators, the performance coefficient is calculated. This metric serves as the basis for determining the employee's rating, on the basis of which the bonus amount is calculated.
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Mistakes and problems in the work of a B2B sales manager
Mistakes in the work of a B2B sales manager are considered in a broad context, including marketing miscalculations, direct errors in the sales process, and organizational shortcomings. Such a diverse range of shortcomings can come from a single employee, since in small firms, the responsibilities of marketing, methodology, and sales management are often carried out by one or two people. The following section offers tips for identifying errors.
Analyze the work of the head and managers of the sales department: listen to their calls, study the correspondence with clients and evaluate the materials used (commercial proposals, presentations, letter templates, call scripts). Get an objective view of the problem from both sides.
Mistakes and problems in the work of a B2B sales manager
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Don't rely on unconfirmed statements and emotional reactions of the staff. Focus solely on statistics, call records and sales figures of each manager individually.
Don't make hasty decisions about dismissal. A choice made on emotions can lead to additional costs for recruiting and training a new employee. It is often easier and more profitable to retrain an existing specialist.
Remember that the cause of problems can be found both in the product or service itself and in the appearance of a new competitor on the market. Problems may not be related to the sales department. First, exclude external factors, and then proceed to check the internal work of this department.
Analyzing historical conversion data at each stage of the sales funnel helps identify problems. These are typically found where conversion rates are falling sharply below target values. Target values are metrics based on previous data, with a reasonable adjustment for growth.
A small number of new customers at the initial stage of the funnel indicates the lack of an effective channel for attracting contacts.
If your sales funnel is getting few leads from online advertising, it could be due to an incorrectly defined target audience or an incorrectly designed funnel.
If a small number of clients move from cold calling to the presentation stage, this indicates a problem with the scripts, an incorrect target profile, or insufficient training of the sales staff.
If clients rarely move from the meeting and presentation stage to discussing terms, the probable cause is poor sales materials or insufficient manager skills.
If the percentage of transition from handling objections to issuing an invoice is low, it may be due to poor product knowledge, poor manager training, or insufficient scripting.
Low payment of invoices may be due to the absence of the “pressure for payment” parameter in the KPI, poor identification of the client’s needs at the confirmation stage, or complex payment terms.
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