How do you balance quantity and quality of sales KPIs and avoid vanity metrics?

The perspective of the sales team on KPIs greatly differs from that of the FP&A team. Sales teams are inherently focused on closing quotas, preferably as quickly as possible, whereas the FP&A team prioritizes revenue distribution across the four quarters and profitability. It is crucial to collaborate closely with the sales leadership to align on the KPIs.

Pour équilibrer la quantité et la qualité des KPI de vente et éviter les mesures de vanité, sélectionnez des indicateurs directement liés aux objectifs stratégiques et à la performance réelle, comme le taux de conversion ou la rétention client. Limitez le nombre de KPI pour ne garder que ceux qui offrent des insights actionnables et qui guident les décisions. Les mesures de vanité, comme le nombre de visiteurs non qualifiés, sont évitées car elles ne reflètent pas la réussite concrète. Enfin, revoyez régulièrement les KPI pour ajuster leur pertinence en fonction des priorités de l’entreprise et des évolutions du marché.

Its critical to measure the "right" KPIs vs vanity metrics. Another example would be: if the goal is to enhance customer satisfaction, relevant KPIs could include Net Promoter Score (NPS) or customer retention rate. These metrics directly measure progress toward the goal of improving customer satisfaction, unlike vanity metrics such as website visits or social media likes. By focusing on KPIs that directly align with specific objectives, businesses can track their performance more accurately and make data-driven decisions to achieve desired outcomes.

Goals are great. But also ensure processes include general control measurements. You don't have to have a goal if you're constantly measuring quality against defined thresholds.

One quality metric is equivalent to twenty quantity metrics. For managers, proactive risk management is paramount, and a quality metric can swiftly indicate potential issues before they become risks. It's a good general practice for each team to have no more than five key performance indicators (KPIs).

Having lead multiple marketing teams, I couldn't agree more. Just meeting the numbers for the sake of meeting the numbers is never the right answer. The "quality" KPIs definitely take an upper hand over quantity when you are managing Growth teams and have to generate good quality warm leads for sales, so they can maximize their conversion.

When evaluating a KPI, it's crucial to examine the trend. Determine whether you are consistently missing the KPI by a similar margin, if the shortfall is worsening over time, or if it's merely a one-time anomaly. Each scenario may require a distinct approach to resolution.

Regularly tracking and reviewing KPIs is crucial for maintaining a successful sales strategy. By consistently monitoring these metrics, you can identify emerging trends and address issues promptly. Tools like dashboards, reports, and CRM systems simplify the collection and visualization of sales data. For example, scheduling weekly meetings to review KPIs allows the team to discuss performance, celebrate successes, and provide feedback. This structured approach ensures everyone stays aligned with the goals and fosters a culture of continuous improvement.

As a best practice, you should try and have as small a number of KPI's as possible and ensure that each KPI can be aligned with the different stakeholder's lens i.e. finance can see the KPI and interpret that the revenue gap will be covered while sales can interpret the same KPI to mean they will meet their sales quota.