This is the second ebook in our Sales Management Series. In this ebook, we’re going to discuss the basics of metrics in Sales Management.
The use of KPIs (Key Performance Indicators) to measure a sales team’s growth or contraction have been used for many years. Some examples include gross sales, net revenue, products sold, and others that demonstrate how a company has succeeded (or not) through a particular period (quarter or year).
But these particular KPIs are actually lagging indicators—so called because they only reflect what has been done. It is rather like the final score of a football game that’s already been played—by the time lagging indicators are recorded, it is too late to change anything. Hence, KPIs are needed which help predict what those lagging indicators will be. These are called leading indicators. As you’ll see, leading indicators are used much too infrequently in sales. We’ll discuss what they should be and how they should be used.
We will also be discussing the combined use of leading and lagging indicators within CRM, and why this is such a vital necessity for sales analysis today.
I hope you find this, and all the ebooks in this series, of helpful use!