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Posted: Thu Jan 30, 2025 4:58 am
by maksudasm
What is the importance of KPIs in sales activities? We explain how to set them, points to note, and the difference between them and KGI!


Many people have probably heard the term KPI in the course of their sales activities.

The current situation france cell phone number list is that there are people who "kind of know" or "have never really paid much attention to it."

However, KPIs are important indicators not only for sales activities but also for management.

It is also important to note that if you do not set KPIs or set them incorrectly, it will be difficult to achieve sales results.

This time, we will introduce how to set KPIs in sales activities, points to note, and the difference between KPIs and KGIs. This article will be useful not only for those who are engaged in sales activities, but also for those involved in management.



Table of Contents [Hide]

1. What are KPIs?
2. KPIs in sales activities
3. The importance of KPIs in sales activities
4. How to set KPIs for sales activities
5. Points to note when setting KPIs for sales activities
6. Set KPIs for your sales activities and achieve overwhelming results!
7. Summary


What are KPIs?


KPIs are the numerical values ​​that are needed to achieve a set goal.

It is an acronym for "Key Performance Indicator."

Translated into Japanese, it means "key performance indicator."

It is said that setting KPIs can lead to successful sales activities.

However, please note that you will not get the desired results just by setting it up.

This requires a deep understanding of KPIs.

First, let's understand the following about KPIs:

The difference between KPI and KGI
Purpose of setting KPIs


Purpose of setting KPIs


In sales activities, KPIs are set primarily for sales revenue and acquiring new customers.

In order to increase sales, it is necessary to take concrete actions such as acquiring new customers through sales activities.

No matter how hard your salespeople try, if they don’t deliver, it won’t make a difference in sales.

Set KPIs to keep your entire sales team on target.

By setting KPIs, you will be able to analyze problems and make improvements by determining what to do and how to do it by when.

It also enables you to conduct business activities without waste.

Another benefit of KPIs is that they allow a team of salespeople to work toward the same goal by showing them specific actions to take to achieve the goal.



The difference between KPI and KGI


A similar term to KPI is KGI.

KGI is an abbreviation of "Key Goal Indicator," which in Japanese means "Key Goal Achievement Index."

If you don't know the difference between KPI and KGI, you may get confused.

KGI stands for business success or the goal of achieving a goal.

KPIs, on the other hand, represent the process required to achieve a goal.

The difference between KGI and KPI is that KGI is the final goal, while KPI is the process towards that goal.

In order to achieve the goal, we set the goal, KGI, and then set KPIs while taking into consideration various factors.

Therefore, although KPI and KGI are different, they can be considered as a set.

The purpose of KPIs is to calculate how to approach KGI.

First, let's start by setting the KGI.



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KPIs in sales activities


We will introduce some sales activities for which KPIs can actually be used.

Setting KPIs plays an important role in sales activities.

By setting KPIs for each phase and making improvements and providing feedback throughout the entire sales department, it is possible to increase profits across the entire company.

The following six KPIs are important in sales activities:

Number of business opportunities
Customer unit price
Number of new customers
New Sales
Conversion rate
Order period (lead period)