The Sales Target KPI measures current sales (either dollar value or number of wins) and compares that value to a target or past performance. This simple sales KPI taps into the competitive nature of sales teams by visualizing their performance in a tangible way.
The key to this KPI is setting an appropriate sales target. This requires a deft touch, as a goal that is set too high will be viewed as unachievable and will drain morale; on the other hand, a goal that is set too low will fail to motivate your team to go that extra mile. One of the most common ways to develop this KPI is to compare current performance to the previous period, for example, showing new wins this month compared to wins last month.
- Wins: The number of new customers over a certain time period.
- Revenue: Income received through sales activities.
- Surpassing a sales target or the previous period's value.
Monitoring Sales KPIs on a Dashboard
Once you have established benchmarks for measuring Sales Targets, you’ll want to establish processes for monitoring this and other sales KPIs. Dashboards can be critical in this regard. Read more