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Setting KPIs for inside sales|Introduction of analysis methods, average values, and examples of improvement

 inside sales

In inside sales, setting KPIs is important because it affects motivation and performance, so it is necessary to understand the correct setting method and improvement measures.

“I don’t know what kind of inside sales KPIs there are and what the target values ​​should be.
” I want to know”

In this article, for those who think like this, I will introduce how to set and improve inside sales KPIs with examples.

Table of Contents

  • Learn the basics of inside sales
    • Types of inside sales
    • The Role of Inside Sales in Marketing
  • What are KPIs
    • Difference between KPI and KGI
    • The need to set KPIs in inside sales
  • Before Inside Sales KPI Setting
    • Set KPI analysis environment
    • KGI setting
  • Inside Sales KPI Setting/Improvement Examples
    • KPI setting for inside sales
    • KPI setting for corporate inside sales of new products
    • KPI setting with enhanced approach to new leads
    • Setting of KPI|Type
    • KPI tree
    • KGI
    • KPIs
    • New customer sales (= number of new contracts * sales per contract)
    • Existing customer sales (= number of existing customers * sales per customer)
  • What to do after setting KPIs
    • Action plan design
    • Progress management
    • report
  • KPI improvement method
    • Points for improving KPIs
    • Tools that can be used to improve KPIs
    • Timing of KPI review
  • The key to KPI in inside sales is the type and number to be set

Learn the basics of inside sales

First, let’s get an overview of inside sales. Inside sales refers to a sales method that approaches prospective customers to obtain appointments non-face-to-face .

For example, you can call or send an e-mail to someone who is likely to be your customer, such as a person who has visited a website where your company’s products are posted, to have them consider your product, or have a business meeting. I’m going to get a.

You may have heard the term field sales, which is a similar sales method. Field sales is a face-to-face sales method, such as negotiations, based on customer information obtained through inside sales.

Types of inside sales

There are two main types of inside sales: response sales (SDR) and new business development (BDR) .

(1) Inside Sales|Response Sales (SDR)

The first is reaction-type sales . It is a style in which information is sent via SNS, websites, advertisements, direct mail, etc., and only those who are interested are considered prospective customers and are sold to those customers.

For example, people who did not click on the ad or did not reply to the email did not count as a lead (prospect), but responded to the DM, flowed from the ad to the website, etc. People are prospects.

Since people who are interested in your company are the target of sales, you do not have the impression that sales is tough, but you need the ability to use advertising and SNS, as well as marketing skills.

(2) Inside sales | New business development (BDR)

The second is new development-type sales. The customer target is different from the reaction-type sales mentioned earlier, and new customer development sales target people who do not know the company’s products.

New business development is necessary to spread awareness of your company and increase the number of customers .

The Role of Inside Sales in Marketing

The role of Inside Sales in marketing is to create business deals . There is inside sales to bring customers to the final stage of considering the introduction of their own services.

What are KPIs

Here, we will explain KPIs. KPI is an abbreviation of “Key Performance Indicator” and means an important performance evaluation indicator.

In other words, it can be interpreted as an index (numerical value) necessary to achieve the ultimate goal of the company. KPIs differ from company to company because the numbers that measure good or bad business performance vary from industry to industry.

Difference between KPI and KGI

A similar term to KPI is KGI.

KGI is an abbreviation of “Key Goal Indicator”, which means a management goal achievement index. In other words, it can be interpreted as a numerical value necessary to determine a company’s management strategy and business strategy. Simply put, the end goal.

The difference between KPI and KGI is that the KGI is the final goal of the company, and the KPI is the indicator necessary to achieve it.

For example, let’s say you set a sales target of $300,000. This is KGI. Suppose you set an index to reach the final goal of increasing the number of contracts by 20% in order to achieve sales of 30 million yen. These are KPIs.

KGI is the final goal, and KPI is the indicator necessary to achieve the goal .

The need to set KPIs in inside sales

So why do we need to set KPIs for inside sales? Unlike field sales, inside sales alone do not generate direct sales because they do not negotiate business or make contracts.

Therefore, it is not clear how much inside sales contributes to business performance and sales . Because inside sales are not directly related to business performance or sales, it is necessary to visualize how much action is being taken to achieve goals .

Before Inside Sales KPI Setting

Here are the actions you should take before setting inside sales KPIs.

Set KPI analysis environment

KPIs, etc. must be measurable because they are expressed numerically.

  • email open rate
  • SNS actions
  • Ad clicks
  • number of visits to the site

These figures are just an example, but try to understand the number of impressions (the number of times customers respond to your content) for the tools you use in your promotional activities.

KGI setting

Before setting KPIs, let’s set KGI, which is the ultimate goal. If the goal is big, such as a management meeting, it is necessary to consider the goal across departments.

Also, instead of vague goals such as “increase the number of customers and improve their satisfaction”, set specific goals such as “increase the number of customers by XX% from the previous year and achieve XX% customer satisfaction.” let’s build If the KGI is not specific, it will be difficult to understand the progress, it will be difficult to maintain motivation, and it will be difficult to set KPIs.

Inside Sales KPI Setting/Improvement Examples

We will introduce setting examples and improvement examples for inside sales KPIs.

KPI setting for inside sales has added the following items to KPIs, which used to be only the number of appointments as a KPI indicator.

  • Number of active conversations : Number of conversations with customers
  • Number of valid business negotiations : The number of appointments you have decided and the number of visits by outside sales that are recognized as valid
  • Order Amount : Amount when your appointment is actually accepted

KPI setting for corporate inside sales of new products

This is a KPI for inside sales of about 500,000 yen to 10 million yen per project for dementia test kits at home for major financial companies.

Result KPI : Business negotiation acquisition rate 15% to 20%
Activity KPI : Number of lead generation over 500 companies (white list, major companies only)


KPI setting with enhanced approach to new leads

The number of SQL statements and the amount of activity are set as the two major indicators for ITmedia’s inside sales KPIs. SQL has nine interview items, such as the sense of issue, the product you want to promote, the budget, and the timing, and we define SQL as a lead who has asked for six or more items.

The amount of activity is the total of the number of calls, the number of emails, the number of appointments, etc. After setting KPIs and establishing the Inside Sales Department, the approach to new leads has been strengthened.

Setting of KPI|Type

When setting KPIs, what kind of numbers do you set? KPIs differ depending on the industry and goals (KGI), etc., and not all companies set the same type of KPIs, but this time we will introduce an example.

KPI tree

Below is a “KPI tree” that summarizes the types of KPIs that are actually used.

This time, I will explain each type of KPI in this KPI tree and introduce their average values.

*In this KPI, the ultimate goal (KGI) is to increase sales.


The KGI that consists of KPIs here is set to “Sales”. Sales consist of sales from new customers and sales from existing customers.


Next is KPI under KGI. Even if sales are KGI, there are various kinds of KPIs.

New customer sales (= number of new contracts * sales per contract)

First, let’s talk about new customer sales. New customer sales are roughly divided into the number of new contracts and sales per contract.

◉ Number of new contracts (= number of negotiations * order rate)

If the number of new contracts is a KPI, the following figures are required. The number of new contracts is determined by the number of business negotiations and the order rate.

○ Number of business negotiations (= number of prospective customers × rate of business negotiations)

The number of business negotiations is determined by the following four factors.

  • Number of prospective customers (=number of approaches x lead acquisition rate)
  • Number of approaches lead acquisition rate
  • Negotiation rate
  • Improvement rate of negotiations

○ Order rate

The order rate is determined by the order rate improvement rate (= order rate of last month / order rate of this month (%)).

◉Sales per contract

It refers to the amount of sales per contract.

Existing customer sales (= number of existing customers * sales per customer)

This is existing customer sales, which is determined by the number of existing customers times the sales per customer.

◉ Number of existing customers

The number of existing customers consists of the following three.

  • Number of new customers (=same as number of new contracts)
  • Churn rate (churn rate)
  • Churn rate improvement rate (=Last month’s churn rate/This month’s churn rate (%))

◉ Sales per customer

Revenue per customer is made up of two things:

  • Number of upsell and cross-sell proposals
  • Number of successful upsells and cross-sells
  • Up-selling: Existing customers purchasing services that are more expensive than the purchased products
  • Cross-selling: Existing customers purchasing purchased products and other services

As you can see, there are many types of KPIs. For example, even with a KGI of increasing sales by XX yen, there are various KPIs to be set, such as increasing the number of new customers or the number of cross-selling successes.

What to do after setting KPIs

Explain what to do after setting KPIs.

Action plan design

First, plan what you need to do to achieve each KPI and what actions you will take. In most cases, the following designs are required:

  • Approach method (medium used for approach)
  • personnel
  • Duration (how long to approach)

For example, if the KPI is 150 new contracts in 5 months, a plan such as “5 people will place 50 web advertisements, send 1,000 emails, and have 35 new customers in a month.” Can stand. In order to achieve KPI, let’s act after deciding on the above items.

Progress management

Let’s check how much each KPI has been achieved by the target period. For example, if you are behind or ahead of your goal, take the situation into account and review the action plans listed above.


Don’t forget to report the status of progress management to team members and management.

KPI improvement method

KPIs should be reviewed periodically to check progress. We will introduce the points to be improved when the numerical value is less than the target, and the tools that can be used to improve the KPI of inside sales.

Points for improving KPIs

This is just an example, but if you are having trouble with the number of contracts or cancellations, try reviewing the numbers below.

◉Review target group

Your target audience may not be appropriate. Here are the criteria for the target audience we want to focus on:

  • Sex
  • Age
  • Purchase frequency
  • Purchase experience with competing services
  • Department (for companies)
  • Number of employees (for companies)

◉ Improve the quality and quantity of communication

Communication in inside sales is the action of approaching prospective customers through emails, advertisements, etc. To improve the quality of this communication, it would be a good idea to review your sales talk script or review your sales training.

It is also important to review communication tools and check whether they are mastered. Inside sales use tools such as web advertising and SNS to communicate with customers, so communication tools are the key to lead acquisition.

Too much or too little communication can lead to customers being overwhelmed by too much contact or too little to be sparse. In addition, too much communication will increase the burden on employees, and there is concern that the quality of approach and motivation will decline.

◉Improve service unit price and quality

Service quality and unit prices may not be appropriate, especially for new customers. Let’s review the quality of service and unit price through competitor and customer surveys.

Tools that can be used to improve KPIs

Here are three tools you can use to improve your KPIs.


CRM stands for Customer Relationship Management. Manage and classify customer information and communications with customers . By using CRM, you can find out which customers are interested in your service, so you can improve the number of new customers by using it for new development sales.


SFA is a sales management system. You can manage the business schedule and the contents of the business .

If you use SFA, you can see the sales details of other sales people, so you can unify your sales style. As a result, the number of approaches and the rate of negotiations will improve, and the number of negotiations and the order rate can be expected to improve.

◉ MA

MA is a marketing automation tool. By automating marketing operations, approaches such as e-mails and DMs are automatically performed according to customer attributes such as purchase frequency and age.

With MA, you can approach customers who haven’t communicated much at the right time, so you can reduce the churn rate.

Timing of KPI review

Review your KPIs before you realize your progress has slowed down. Also, let’s review the timing of announcing management plans and quarterly/mid-term management plans.

It may be necessary to change not only the indicators for each KPI, but also when the figures for KGI and related businesses change, or when other targets change, so let’s review them frequently.

The key to KPI in inside sales is the type and number to be set

This time, I introduced KPI in inside sales. When setting, carefully consider what numbers are necessary and how much, referring to your business goals.



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