Key B2B KPIs were also addressed at the ME B2B Summit 2019. The topic, particularly targeted at salespersons, was presented by Paulo Teles, IT Director at Sonepar Group.
Knowing which KPIs to measure and how to measure them can be a major watershed when a company increases its sales performance and is established in the marketplace.
That’s why this post recalls Paulo’s presentation, to reinforce his tips on how to measure the right KPIs and leverage business.
Keep on reading!
What are KPIs?
KPIs, or Key Performance Indicators, are metrics used to measure a company’s processes and, through them, help teams achieving their goals.
With such indicators, all employees can be knowledgeable and act as important and integral parts of the company’s mission, and then align efforts intelligently, in order to meet the strategies established by leaders.
The interesting part is that, with the results pointed out by the KPIs, the organizations can not only quantify the performance of their teams, but also allow such teams to understand how important their activities are to the achievement of these numbers.
How to manage KPIs?
One of the key points addressed by Paulo Teles, during his lecture at the ME B2B Summit, was how to manage KPIs to enable business taking off. For such purpose, he provided six valuable tips:
- Alignment to strategical planning: Fully understand strategic objectives, in order to translate them into goals.
- Definition of goals to be achieved: Set realistic, specific, measurable and relevant goals. Use the SMART goals in this task.
- Definition of KPIs: Define them with clear and standardized rules; they must be relevant to the business and easy to calculate and measure.
- Performance tracking: Monitor processes to make sure they are performing as expected.
- Deviation correction: Solve existing problems in the root using the Ishikawa Diagram.
- Continuous improvement: Analyze existing problems to overcome them, and strive to optimize processes and results.
SMART Method: Creating goals for the B2B world
The SMART method is an efficient way to create goals. It’s based on a checklist, which enables assessing whether each goal has the minimum requirements to be achieved by the team. The acronym SMART stands for: S – Specific, M – Measurable, A – Achievable, R – Realistic and T – Timely.
Mr. Teles summed up each letter in just one slide of his presentation:
Specific – What do you want to do?
Measurable – How will you know when you get there?
Achievable – Have you the power to achieve it?
Realistic – Can you really achieve this?
Timely – When do you really want to achieve it?
How to choose the KPIs for your business?
The choice of KPIs depends on several factors. The key factors to look at are: your goals and the segment of your business. Finally, you must select a small group of key indicators, being careful not to leave out too many possibilities.
During the lecture, Paulo Teles revealed the main KPIs for e-commerce and the commercial area:
Top KPIs for B2B e-commerce
Top KPIs for the commercial area
Projection for the future
Paulo Teles believes that marketplaces are the future of sales. The share of this business model has grown significantly in digital retail. According to Shop.org, Channel Advisor and Mackinsey databases, Brazil has a share of up to 4 billion dollars, while USA have 115 billion and China has surpassed 506 billion dollars already – which is the top performance of all countries when it comes to e-commerce.
About Paulo Teles
He’s IT Director at Sonepar, with an experience of more than 25 years in the technology area, and postgraduate in PMI Project Management from IBTA (Instituto Brasileiro de Tecnologia Avançada). His skills include Business Processes, Oracle Databases, Business Process Design, IT Service Management and IT Strategies.
This is the second post of a series we will publish on the ME B2B Summit 2019. If you liked it, subscribe to our newsletter and stay updated about everything that happens in the B2B market!
See you next time! 😊