In today’s busy world, we are amazed that many businesses are running at a thousand miles and hour but don’t have system that provide the core KPI results as often as desired so the management team can properly manage the business.
What KPIs do you use to run your business and what KPIS would you like to make better decisions ?
Your data is an asset and it should be mined to provide insights and forward indicators of events. Further, KPIs should be both tactical and strategic to all levels of the business can leverage the knowledge.
Your sales team should naturally see sales trends data all the way down to the client level so when they are discussing the client needs, they are reviewing bunting patterns period by period, product category by product category.
A recent success should be discussed here. One of our clients mapped buying patterns by period by category to the point that they effectively have spending budgets by period that could be monitored and through the month the customer service team was able to assist the client proactively and hit their monthly spend.
The result was the budgeting for the business was changed to reflect stable monthly spend data plus growth and had a clear capability to monitor execution month on month.
The result ? 20% growth year on year until the business was sold.
KPIs not considered.
We all use the standard kpi set that has a financial focus but there are other KPIs you should also consider that come from your CRM system. Consider the following relationship KPIs.
1. Last since last development meeting – When did you last discuss strategic plans ?
2. Number of decision makers known – What is your account coverage ?
3. Number of 2nd tier managers known – What is your backup plan ?
4. Documented development plan for the major and 2nd tier clients. – Are they written down ?
5. Valided development plan – Have you discussed the plan with the client and are they aligned ?
6. Number of emails to and from the client / month. – Emails volumes have been a lead indicator for customer engagement. When email volumes drop, it has been shown to be an indicator is a breakdown in relationship.
7. Recurring visit / discussion schedule for key accounts – Have you got one for all key accounts ? Have you a plan to help the clients hit their goals ?
Now there are interesting as they drive an organisation to consider who they know, when they last had a serious strategic conversation and are they making sure they have backup plans in case key staff leave.
How many sales or relationships have you lost when one key person leaves and you relise you don’t know anyone else and therefor the client doesn’t now know you. We have seen many client also suffer from the loss of along serving staff member as you réalisé too late that all the client knowledge just walked out the door.
Your CRM will provide you the relationship and forecast data you need to report on what will be rather than what is.
Your ERP tells you about today.
Your CRM tells you about tomorrow and how you hit your budget and what risks there are ahead.
Wouldn’t it be interesting to report on project sales by client per month and them overlay a risk adjustment based on if the client is under correct management, indicating of buying pattern changes and if you know enough people (based on value to you) to ensure that the relation can continue.
So please consider KPIs in a new light and develop in your systems both operational and CRM an interlocking model that tells you what you need.
If you need advice or wish to discuss this further, just reach out and we will be happy to discuss your needs and share our experience in KPI delivery.