Measuring business performance with indicators is very important for businesses to evaluate, measure, and recommend a suitable business strategy. In this part 1, BEMO will introduce eight business metrics applied by many businesses in management.
1 . Monthly sales growth
This is an essential indicator that the sales department should apply because the leadership can predict how the future sales situation will be. Think about if your business only captures sales through quarterly reports, or beyond that, it will be hard to make timely decisions and support, helping to improve business performance.
In addition, when imposing monthly sales growth, businesses can stimulate employees to work hard to achieve goals.
2. The percentage of profit
With this index, the business will benefit from knowing which products are the highest rate and can make optimal strategic commodities. Moreover, business personnel can base on the rate of return to give discounts, incentive programs more flexible to attract customers.
If your business owns a chain of stores, this is the metric to measure the orders of each unit. Then, businesses can effortlessly build reward policies for branches and employees.
This is an effective form of sales promotion management between stores because it makes competition, and employees of each branch will work hard to increase sales.
4. Potential customers per month
With this indicator, the sales department will have a priority strategy to take care of and advise potential customers to become loyal clients. Because in the buying phase, if not taken care of, customers will leave.
Moreover, when applying this indicator, businesses will know the success rate of an order needs to interact with how many emails, messages to build a suitable consulting method to increase the ratio more efficiently.
5. Revenue target
Doanh nghiệp không nên bỏ qua chỉ số này, vì sẽ giúp phòng kinh doanh đánh giá được năng suất của nhân viên. Nhưng để hiệu quả, doanh nghiệp cần phải dựa vào doanh thu quý, năm trước để đưa ra doanh thu mục tiêu phù hợp. Chính điều này sẽ làm cho nhân viên không cảm thấy quá sức, và nỗ lực hơn để đạt mục tiêu.
6. Imposing orders on an employee
If order rate KPI is applied, businesses will know each employee’s performance, strengths, and weaknesses. At that time, businesses will have appropriate policies and training strategies for sustainable sales growth.
However, businesses should not impose too much because it is easy to create competition among employees, even lack of honesty in sales to reach targets.
7. Order value ratio
Order value is also an indicator determining which price customers will be willing to pay based on the order purchased. Then, employees can exchange and define the quantitative value for each potential order.
8. Number of calls, emails per month
Businesses can view employee interactions with customers. Besides, they can also determine whether the quality of emails and calls satisfies customers or measure their needs during the purchase process.
The above are KPIs for the sales team that businesses can consider when they want to apply internally. Stay tuned to BEMO to learn the essential business metrics to increase business performance in the next section.