The KPI system can be launched according to plan in the demo mode of the CRM system for managers for several months of work in order to extend it to specific departments or the entire company.
It is important to maintain communication between different services for the integrity of the implementation of different amounts of KPI data and to maintain motivation. Sometimes they start with leading departments, gradually adapting the system to them - this approach is good for a business aimed at high-quality service when working with clients and concluding deals
The selected KPI scheme for a certain period will become the basis for the sales department's requirements to other departments.
Example of a KPI funnel for boost your business with our doctor database managers when working with clients:
Goals KPI
Increase sales volume (30%) Sales increase by 100 thousand rubles.
The “star” gets 20% growth, the rest get 10% each
Increase sales volume for new clients (30%) Minimum 2 new clients
Minimum contract – 1.5 million rubles.
Improve customer service (40%) On-time delivery of goods – 95%
Order fulfillment speed – 4 days
Response time to request – 8 hours
However, in any conditions, after implementing the KPI system in the CRM system, the members of the working group continuously analyze cases when business results do not meet the planned indicators for months.
It is important to identify the factors that caused these KPI discrepancies when working with clients. Such analytics of the managers' work data will become the foundation for monthly "fine tuning" and quarterly verification of the adequacy of the established connections.
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
Key KPIs for a Sales Manager
Net profit from transactions
This quantitative KPI of the sales manager is obvious in itself. It is necessary to remember that profit and total income from transactions are different values of the funnel. When calculating these KPIs in the CRM system, the money that remains at the disposal of the business after all expenses is important.
Here is an illustration of the calculation of the KPI funnel when working with clients. For example, at a company engaged in the production of workwear, the sales manager Vasily implemented an order worth 400 thousand rubles. However, the technical sector spent 100 working hours to fulfill the specific requirements of the client.
The cost price of the products, excluding the wages of technical personnel, was 150 thousand rubles. Consequently, the net profit from the transactions that the enterprise earned thanks to the activities of manager Vasily was 100 thousand rubles:
400 thousand rubles (income from transactions) - 100 x 1500 (salaries of technical department employees) - 150 thousand rubles (cost price) = 100 thousand rubles.
Another sales manager, Valery, sold work clothes for a similar amount, but was able to convince customers that there was no need for additional modifications to the models. In this way, he provided the business with an income from customers in the amount of 250 thousand rubles:
400 thousand rubles (income from transactions) - 150 thousand rubles (cost price) = 250 thousand rubles.
Let's compare the performance results of both managers in the KPI funnel table:
Indicator Vasily Valery
Cost of goods sold, rubles 150,000 150,000
Additional costs for product sales, rubles 150,000 0,00
Revenue from sales of goods, rubles 400,000 400,000
Profit, rubles 100,000 250,000
As a result, manager Valery turned out to be more successful for the business in his endeavors and demonstrated an effective KPI result while working with clients, therefore he deserves a reward for the increased profitability of the deal.