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KPIs

The perspectives are:

  • I./III. External Sales Rep
  • II. Sales Manager
  • IV. Internal Sales

The dimensions are:

Dimension index Description
Customer \(k\)
Product \(p\)
Sales Rep \(s\)
Region \(r\) from the customer
Funnel Stage \(f\) customer, suspect, prospect
Sales Transaction \(x\)

External Sales Rep

Revenue Target

Revenue Target per year: \(R^{target} p.a.\)

Dimensions:

  • per sales rep \(s\)

Number of Visits

Number of visits per month: \(\# V\,p.M.\)

The possible dimensions are:

  • per sales rep \(s\)

  • per customer \(k\)

  • per region \(r\)

  • per funnel stage (customer, suspect, prospect)

Success Rate

Success Rate for a client k: \({SR}_k=\frac{R^{actual}_c}{R^{potential}_k}\)

Dimensions:

  • Customer \(k\)

Sales Potential

\(POT_{p,k} = \frac{R^{actual}_{p,k}\,\text{p.a.}}{R^{potential}_{p,k}}\)

  • \(R^{actual}_{p,k}\,\text{p.a.}\): the actual sales revenue from client k with product p during the last 12 months (one year moving window)
  • \(R^{potential}_{p,k}\): the one-year potential of product p for client k, depending on the product and number of animals, etc. Given.

Sales Manager

Sales Rep Profitability

Sales Rep Profitability: \(M_s\%=1-\frac{C^{SalesRep}\$}{ M\$}\)

Where:
- \(M\%\): Profitability (earnings percentage)
- \(C^{SalesRep}_s\): Cost of sales rep \(s\)
- \(M\): Sales Margin

With:

\(C^{SalesRep}_s = C^{Labor}_s + C^{Commission}_s\$ + \sum C^T\)

QUESTION: what is \(C^T\)?

NOTE: if \(C^{Labor} = 0\) and \(C^T = 0\), then the formula implodes to \(M_s\%=1-\sum_x {\frac{M_x\cdot c_s}{M_x}} = 1 - c_s\)

  • \(C^{Labor}\): Salary, only relevant for Sales reps which are employees (currently none)
  • \(C^{Commission}\) for a sales rep \(s\) is a percentage \(c\) of the sales margin of sales transaction \(x\), i.e. \(C^{Commission}_{s} = \sum_x M_x\cdot c_s\)

Note that we ignore other fixed expenses like car, insurance, etc. when calculating the cost of a sales rep.

Dimensions:

  • sales rep \(s\)
  • transaction \(x\)
  • client \(k\)
  • region \(r\)

Internal Sales

  • independent variable: promotions (campaigns), such as

    • advertisement
    • mailing

  • dependent variable: sales (mostly in numbers, per product)

Thus:

  • \(\#S_i\): number of sales of product \(i\)
  • $Promo_{i,c}: Promo on channel \(c\) affecting product \(i\) (dummy variable)