KPI's for Establishing Contact
Managers like to measure performance to guide their sales force. Sales people like to realize goals. Long term goals, such as realizing turnover, might not motivate them to provide the input on a weekly basis. By cutting the sales process in smaller portions the sales person can establish weekly goals. Realizing these goals will satisfy him at every stage in the sales cycle. This article proposes a couple of performance indicators that can be used in the “Establishing Contact” phase.
Successful Established Contacts
Number of Calls resulting into “start of next action in the sales process”. During the establishing contact phase the objective is to identify if the next step in the sales process makes sense or not. The sales person has to measure the successful contacts established. For example: In case the objective of establishing contact (read: next step in sales process) is to bring the procurement manager and the project manager to the table for a meeting, the established contact is successful in case the meeting is scheduled.
Unsuccessful established contacts
It is important to measure the performance of your lead generation and the effectiveness of the sales person by tracking the number of attempts to establish contact which were unsuccessful. For the sales person it is attractive to measure this metric, because he can show how many proactive actions he has taken.
Manage and Reward
Managers of sales person should manage on the proactive input of the sales person. The sales person should be awarded for his input. Best in Class Sales People will have a high number of proactive activities (successful + unsuccessful established contacts) and relatively a high percentage of successful established contacts. When the sales person is taking a lot of proactive actions, but the success rate remains low extra training or better lead generation might bring better results. The sales people with low numbers on proactive activities, but high average success rate will not grow your business. .