KPI
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The Biblical Sales Force Part 3 – Numbers: Metrics and KPIs
- November 23, 2024
- Posted by: Dave Kurlan
- Category: Understanding the Sales Force
In my experience, most companies have KPIs in their sales organizations but the real issue is usually whether or not the KPIs they trot out actually drive revenue. In most cases, they do not.
KPIs must be forward looking indicators, not lagging, or backwards looking results and most companies fail to make that key distinction. While last month’s revenue and gross profit numbers are an indicator of how the company performed (past tense), they do not indicate how the company WILL perform (forward looking).
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Using Baseball to Select and Hire Salespeople
- May 20, 2024
- Posted by: Dave Kurlan
- Category: Understanding the Sales Force
This article has a set of three distinct analogies comparing baseball to sales so if you don’t want to hear about the baseball side of the analogy, you’ll probably want to exit the article. If you stay, you’ll be asking yourself, “Why didn’t I think of that?”
Analogy #1 – Filling Seats
Let’s start with what a sales team would call a termination. It doesn’t matter whether it is voluntary or involuntary, when it occurs, the salesperson must be replaced.
In baseball, whether a player is injured, traded, released, or leaves via free agency, he must be replaced. There are three options:
If the team chooses to replace him organically, they call up a major league-ready player from their top minor league (AAA) team and voila – he is replaced.
If they trade for a replacement, they determine who they want and what it will take in both major league and minor league talent to acquire him. They might negotiate over the specific players and when they agree, a deal gets done and they have their replacement.
If they elect to sign a free agent, it usually comes down to money and if the player and team can agree to the terms, they have what is usually an expensive replacement.Let’s discuss the preparation, work and diligence the organization would have done prior to promoting a minor leaguer to the majors. They scouted him in high school and/or college. They oversaw his development in Rookie League ball, then through low and high Single A ball, then Double A, and finally Triple A. The player has typically been in their system from as little as two years to as much as eight years. They have extensive first-hand knowledge of the player’s work ethic, defensive capabilities and liabilities, offensive capabilities and liabilities, mental toughness, and have projected how he will perform in the major leagues. It’s not significantly different with players they might trade for, or free agents they might sign, because their scouts have seen those players and their team has played against those players.
Compare having to replace a baseball player to what happens when you must replace a salesperson. You don’t have anyone to “call up” or promote and there are two options:
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How Better Accountability Causes Sales Performance to Increase
- January 4, 2016
- Posted by: Dave Kurlan
- Category: Understanding the Sales Force
Sure, having goals is important, but having them in writing, with an achieve by date and a plan is exponentially more likely to have an actionable outcome than only having goals. And if you really want results, accountability is to goals as the accelerator is to the automobile. They both cause immediate action. Here’s what I mean.
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Social Selling – I’m a Proponent, Not a Detractor – Look at The Stats
- November 15, 2013
- Posted by: Dave Kurlan
- Category: Understanding the Sales Force
Bob Thompson left several comments on the article at the CustomerThink site. In his last comment, he asked what the stats would look like if we only reported on what the best salespeople did with social media. I think that’s a terrific idea, Bob, and while it’s much more difficult to isolate those statistics, I did the research and report on it here.
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Insider Opinion – Why Sales Experts Can’t Agree on Anything
- November 11, 2013
- Posted by: Dave Kurlan
- Category: Understanding the Sales Force
Good things are happening in the world of sales and some of those things are coming your way. Just keep both eyes open, your nose to the ground and your antenna up. You’ll intuitively know whether or not what you are reading is a bunch of bunk or the real deal.
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Increase in Social Selling Yields No Improvement in KPI’s
- November 5, 2013
- Posted by: Dave Kurlan
- Category: Understanding the Sales Force
For all the attention that these sites get, for all the salespeople who now spend their evenings perfecting their profile, adding people to their networks and asking for introductions, what hasn’t changed for the better are these key metrics:
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Tighter Sales Metrics at New Year Leads to Improved Success
- January 7, 2013
- Posted by: Dave Kurlan
- Category: Understanding the Sales Force
That leads to your KPI’s (Key Performance Indicators) or metrics which drive revenue. If you collect these now via a daily huddle, that’s terrific; let’s tighten them up. If you don’t currently have your sales team calling in every morning for 10 minutes, you’re missing out on a critical piece of accountability, team-building and intelligence.
How can you tighten up your metrics?
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#1 Sales Presentation Tip from October 16 US Presidential Debate
- October 17, 2012
- Posted by: Dave Kurlan
- Category: Understanding the Sales Force
When your salespeople are invited back to be one of several to present capabilities, value propositions and solutions, the exact same scenario as described above is sure to be played out. If the prospect liked you going in, they’ll look for opportunities to support your presentation. If the prospect liked your competitor going in, they’ll look for opportunities to discredit you in any way they can.