In this post, we will present\u00a05 KPIs (Key Performance Indicators) that are crucial to have on your Manager Dashboard if you’re to get a crystal clear vision of your Financial Services or Banking Products Sales Funnel.<\/p>\n
There are well-known Key Performance Indicators (KPIs) in Sales which, just like images, are worth a thousand words, and especially when it comes to Financial Services or Banking Products Sales, a field of activities where more than anywhere else, performance is law, right?<\/p>\n
Some Key Performance Indicators (KPIs) can literally take your Sales Department to a whole new level; unfortunately, very few realize that.\u00a0 We are thinking about all these C-level Managers here that we have come to run by over the years as a Software Developer and which have told us: \u00ab You know what? When it comes to Business Intelligence and those metrics that can tell you what\u2019s happening with your Sales Force\u2026 well, the truth is, I\u2019m pretty blind!\u00a0\u00bb<\/p>\n
Not that we would pretend to know or to understand perfectly the subtleties of operations of \u00a0all the many businesses at work in the field of Financial Services or Banking Products but just that, with 30 years of experience as a Software Developer including many large mandates for Banks and Financial institutions, well, we have acquired a certain expertise about what information exactly it is that Managers need and require to make sound decisions and to base their Business Development and Sales Strategy upon.<\/p>\n
So what does the Manager \u2013 Sales Director \u2013 Marketing Director (CMO) really need to to get a clear vision of his actual Sales status?<\/p>\n
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The question actually do provide part fo the answer, in the word \u00ab\u00a0actual\u00a0\u00bb; because whatever criteria or metrics you want to use, you will want to compare the actual with the future, what is with what will be and what should be: both in terms of individual performance and global sales. There lies the secret of the sauce!<\/p>\n
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Individual Performance<\/strong><\/p>\n Individual performances can help you mark the frontier between individual performance problems and global ones that may be linked to a specific product, territory or competitor.<\/p>\n If all representatives of one specific territory or a few territories experience the same simultaneous sales performance decrease; well, evidently, there most be a common denominator, either competition or the global economy or…<\/p>\n Hence, we would like to know if sales reps have reached their objectives by period of time; weekly, monthly, quarterly and annual, of course, in terms of:<\/p>\n <\/p>\n Actual Performances vs Objectives<\/strong><\/p>\n N.B.<\/em><\/strong>\u00a0 Normally, it should be quite easy to extrapolate these metrics from the KPIs below.<\/em><\/p>\n <\/p>\n KPIs \u2013 Global Performance<\/strong><\/p>\n Here also, we would like to extract data in order to display performance metrics to make a comparison for each period of time (monthly, quarterly and annual), territory and \/ or sales point and products, if applicable.<\/p>\n Actual Sales versus Objectives<\/strong><\/p>\n The ABC of any sound Sales Management; so, by time period, territory and product.<\/p>\n N.B.<\/em><\/strong>\u00a0 Repeat Business with actual Clients most of the time will generate a smaller profit margin than sales with new clients.<\/em><\/p>\n <\/p>\n Sales Pipeline<\/strong><\/p>\n Here again, although, it\u2019s old school stuff, we still need it.<\/p>\n <\/p>\n Sales Activities, global and per representative<\/strong><\/p>\n For each time period (monthly, quarterly and annual), territory and \/ or sales point and products, if applicable.<\/p>\n <\/p>\n Sales Profitability<\/strong><\/p>\n Often neglected, this metric is nevertheless quite revealing in terms of any business health and can help identify the source of sand in the gears with fatal potential consequences.<\/p>\n Average Profit Margin vs Global Profit Margin<\/p>\n Transactions ROI<\/p>\n N.B.<\/em><\/strong> It can be quite enlightening to examine closely Profit Margins by Client Segments; for example, if your Top 10 Margins are below objectives but still represent 40% of all profits; well, that\u2019s something to think about. Likewise, if small clients\u2019 margins are humongous, that\u2019s also something to dwell on and to re-examine the amount of efforts devoted to this Clientele\u2019s segment.<\/em><\/p>\n <\/p>\n Lost Opportunities<\/strong><\/p>\n This metric is also very often neglected and God knows it is important because it is certainly as important to recognize and explain your good knocks as the bad ones!\u00a0 Identify at leats 5 main reasons.<\/p>\n <\/p>\n Conclusion<\/strong><\/p>\n According to business type, field of activities and business orientations, KPIs vary a lot. Likewise, a wide variety of tools are used to gather data and crush metrics according to business size and levels of innovation; it goes from Excel files to sophisticated custom dashboards.<\/p>\n Unfortunately, many decision-makers underestimate the usefulness and benefits they could get from Business Intelligence and metrics:<\/p>\n It is not abnormal that tools people use are actually just not providing the right KPIs or all those needed; it is quite common. Likewise, we very often see businesses where the tools providing crucial KPIs to their decision-making were actually developed with a simple program such as Excel.<\/p>\n ON THE OTHER HAND, there comes a time when getting the right KPIs might require much time and efforts; then one must do the Business Case (cost vs gains) to determine if the investment required to develop the data gathering program and automate the KPIs display is worth it.\u00a0 It would be as much important to do a Dashboard comparative analysis of \u201ccost vs benefits\u201d between a Commercial Product vs a Custom-Developed one.<\/p>\n <\/p>\n\n
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