Why Tailored KPIs Are Crucial for BDMs and COAsMay 25, 2023
In today's fast-paced business environment, measuring the success of sales teams is more important than ever. This is where Key Performance Indicators (KPIs) come into play. KPIs are measurable goals that help organizations track the performance and success of their employees, teams, or departments. When it comes to sales teams, KPIs can help monitor their performance, identify areas for improvement, and align their activities with the organization's goals. However, not all KPIs are created equal, and it's crucial to tailor them to specific roles within the sales team, such as Business Development Managers (BDMs) and Client Opportunity Advisors (COAs).
Why Separate KPIs Are Necessary for BDMs and COAs
BDMs focus on building relationships with referral partners, networking, and ultimately converting new clients. They need to be self-motivated, persistent, and have excellent communication skills. Therefore, the KPIs for BDMs should track inbound leads, calls made to brokerages, presentations given, new contacts added to their CRM, consultations conducted, property visits, and the number of new clients made. These metrics help BDMs to gauge their performance and understand the areas where they excel and those that require improvement.
On the other hand, COAs specialize in outbound lead generation and setting appointments. They need to be proactive, persuasive, and have excellent phone etiquette. Therefore, the KPIs for COAs should track outbound calls, pick-ups, appointments set, total talk time, and lead pulls. These metrics help COAs to focus on the activities that generate results and improve their performance.
The Pitfalls of Misusing KPIs
While KPIs can be a powerful tool for measuring sales performance, they can also be misused as a tool of punishment or intimidation. When KPIs are used as a weapon against salespeople, they can have a negative impact on motivation, morale, and ultimately, sales results. Sales managers should avoid the temptation to use KPIs as a blunt instrument to drive performance and instead focus on using them to identify areas for improvement in the sales process.
Best Practices for Using KPIs
To get the most out of KPIs, sales managers need to follow some best practices for setting and tracking them. First, KPIs should be specific, measurable, and attainable. Setting unrealistic or vague KPIs can lead to confusion and frustration among sales team members. Second, sales managers should establish clear communication and expectations around KPIs. This includes explaining why specific KPIs were chosen and how they tie into the organization's overall goals. Finally, sales managers should use KPIs to foster a culture of continuous improvement and collaboration within the sales team. This means that KPIs should be viewed as a tool for identifying areas for improvement rather than a stick to beat salespeople with.
KPIs are a vital tool for measuring sales team performance, but they must be tailored to the specific roles within the team, such as BDMs and COAs. By setting the right KPIs, sales managers can help their teams to focus on the activities that generate results and improve their performance. However, sales managers should avoid the pitfalls of misusing KPIs as a tool of punishment or intimidation. Instead, they should use KPIs to foster a culture of continuous improvement and collaboration within the sales team. By doing so, sales managers can help their teams to unlock their full potential and achieve greater success.
Author: Experience Officer
& Founder Edits