In mid-2013 we were contracted to help a security integrator streamline their sales process and put their sales people in a better position to succeed. One of the first exercises we conducted was to determine how they measured their sales team’s activity and production. Our discovery was somewhat common among our clients: they were using rules of thumb created decades ago, and they were measuring everyone on the team with the same KPIs.
We discovered that their expectation for outstanding quotes was very high. The result was a ton of quotes without much qualification. This led to an inflated pipeline and a deflated close ratio – both of which were artificial because the sales people were trying to meet an unreasonable quote requirement and wasting a bunch of time doing so.
We also discovered that each of their six sales people had different skills, which led to different ratios throughout the sales cycle. Some were very good at opening doors, others were better at identifying problems, and one had been there for 22 years and had very long relationships with customers. However, they were all measured with the same ratios.
Our solutions:
1. We determined the best formulas to calculate each KPI based on annual quota.
2. We determined KPIs for each person – different ratios for each individual based on their skills and experience.
The results have been very positive, but at first it took a lot of change management… by the sales people and leadership. However, once the process was in place and accepted, management could utilize the numbers to make the right decisions because the right KPIs were in place from the beginning.
If you’re interested in learning how we might be able to help your organization streamline your sales efforts, please click here.
