The commercial kpi (Key Performance Indicators) are key performance indicators used to measure the efficiency and performance of a company's commercial activities. They play a crucial role in the management and optimization of commercial processes, allowing companies to follow their progress towards specific objectives. In this article, we will explore the Definition of commercial KPIs , their importance, practical examples , and will answer the question: What are the commercial kpi? Strong>
What is a commercial kpi?
The commercial kpi , also known as kpi Commerce , are metrics used to assess and follow the performance of commercial activities. These indicators allow companies to measure critical aspects such as sales, customer satisfaction, productivity of sales teams, and much more.
Definition of commercial KPIs
A commercial kpi is a measurable value that shows how a business achieves its commercial objectives. These indicators are specific, measurable, reachable, relevant and temporally defined (Smart). They help identify the areas of success and those requiring improvements.
Importance of commercial kpi
commercial kpi are essential for several reasons:
- Performance monitoring : they allow companies to follow the performance of their sales teams and identify areas requiring special attention.
- decision -making : By providing specific data, KPIs help managers make informed decisions to improve commercial strategies.
- Motivation of the teams : KPIs serve motivation for sales teams by setting clear objectives and rewarding exceptional performance.
- Process optimization : they help identify ineffectiveness and optimize processes for best results.
What are the commercial kpi?
To better understand what are the commercial kpi , let's examine some current examples:
1. Turnover
Turnover is one of the most fundamental kpi . It measures the total sales generated over a specific period. This KPI makes it possible to assess the overall performance of commercial activities.
2. Number of new customers
This KPI measures the number of new customers acquired over a given period. It is essential to assess the effectiveness of customer acquisition strategies.
3. Conversion rate
The conversion rate indicates the percentage of prospects that turn into paid customers. It is a key indicator of the efficiency of sales and marketing efforts.
4. Average value of transactions
This KPI measures the average value of transactions carried out by customers. It helps to understand the purchasing behavior of customers and to identify UPSELL and Cross-Sell opportunities.
5. Customer retention rate
The customer retention rate indicates the percentage of customers who remain faithful to the company over a given period. It is a key indicator of customer satisfaction and loyalty.
6. Sales cycle
The sales cycle measures the average time required to convert a prospect to a customer. A shorter sales cycle is generally preferable because it indicates an increased efficiency of sales processes.
7. Customer acquisition cost (CAC)
The CAC measures the average cost to acquire a new customer. This KPI is crucial to assess the efficiency of marketing and sales sales strategies.
8. Purchasing rehearsal rate
This KPI measures the percentage of customers who make repeated purchases. A high rate of purchasing rehearsal is a good indicator of customer satisfaction and loyalty.
9. Satisfaction Client (CSAT)
The CSAT is a measure of customer satisfaction with the company's products or services. It is generally measured by satisfaction surveys.
10. Customer recommendation index (NPS)
The NPS measures the probability that customers recommend the company's products or services to others. It is a key indicator of customer satisfaction and loyalty.
How to create a commercial KPI table
To effectively follow the commercial kpi , it is essential to organize them in a clear and understandable dashboard. Here are the steps to create a commercial KPI table :
1. Identify the relevant KPIs
The first step is to identify commercial kpi most relevant to your business. It will depend on your specific commercial objectives and the aspects you want to measure.
2. Collect data
Once the KPIs have been identified, it is important to collect the data necessary for each indicator. This may include sales data, customer satisfaction surveys, financial reports, etc.
3. Use visualization tools
To make data understandable, use visualization tools such as graphics, tables and diagrams. Tools like Excel, Tableau or Power Bi can be very useful for creating a Visual and Interactive Commercial Kpi Table.
4. Update regularly
commercial kpi must be followed and updated regularly to reflect current performance. Set evaluation periods (monthly, quarterly, etc.) to examine the data and adjust the strategies accordingly.
5. Analyze and act
Analysis of commercial kpi is essential to understand trends and identify improvement opportunities. Use the insights obtained to adjust your commercial strategies and achieve your goals more effectively.
Trade KPI list to follow
Here is a commercial KPI list that you can follow to assess and optimize the performance of your commercial activities:
- turnover
- Number of new customers
- conversion rate
- average value of transactions
- Customer retention rate
- sales cycle
- Customer acquisition cost (CAC)
- Purchase repetition rate
- Satisfaction Client (CSAT)
- Customer recommendation index (NPS)
Conclusion
commercial kpi are essential tools to measure and optimize commercial performance. By understanding their definition, by following concrete examples, and integrating them into a well -structured dashboard, companies can improve their strategies and achieve their commercial objectives more effectively. The key is to choose the most relevant KPIs, to collect precise data, and to analyze them regularly to make informed decisions. With effective management of commercial kpi , companies can not only monitor their current performance, but also anticipate future trends and adapt quickly to market changes.