Setting Sales KPIs
Here’s a fun fact that you might not have realized: Your business depends on sales.
All joking aside, we’ve worked with quite a few beverage companies that take this simple fact for granted and fail to think and act consistently to execute their external sales strategy, if they’ve even got one in the first place. Sales depend on your ability to reach your target customer, whether that customer is proactively walking in your front door to buy a pint, or you’re walking in their front door to sell them a 1/2 barrel of your pilsner.
For the purposes of this post, we’re referring to your wholesale, B2B business that you run at your company, be that a brewery, distributor, distillery, or whatever.
Here are three general things to keep in mind about external sales specifically:
Managing your sales process, and sales team, requires constant vigilance. It requires planning, replanning, and active management. There’s absolutely nothing passive about being in sales.
Outside sales teams require a strong vision, concrete metrics to baseline performance, and easy access to the resources they need to meet and exceed their targets.
The “resources” mentioned above include budgets and tools needed to execute.
If you do one without the other, you’re dooming yourself and your team members. You’ll experience high employee churn, low performance, and a lot of wasted time and money. Our platfrom here are Resin is designed to make the sales process as easy as possible, providing access to all the company information your sales team needs to be successful.
In many ways, selling beer hasn’t changed much in the last three decades. A strong, motivated sales team, whether it’s one person or 100, plays a pivotal role in driving growth and establishing a brand presence in the market. Beer buyers expect you to show up, and show up often, to make a case for your portfolio in their bar or restaurant.
Ensuring sales success isn’t a perfect science, but it’s essential to set clear and measurable Key Performance Indicators (KPIs) that align with the company's overall objectives. Do you want go from 750 BBL to 1500 BBL this year? 5000 BBL to 7000 BBLs? Do you want to increase your on-premise depletions by 50% YOY? How can a sales team’s efforts help the company reach its goals? You need to connect the dots.
KPIs act as compasses, guiding the sales team toward success while providing valuable insights for continuous improvement. Here’s a basic summation of that process:
Understand Your Objectives: Before setting any KPIs, it's vital to have a comprehensive understanding of your business objectives. Are you looking to expand market share, increase distribution channels, or enhance brand awareness? Identifying these overarching goals will help you tailor specific KPIs to align with your company's vision. For example, if your objective is to open new markets, KPIs like "number of new accounts opened per quarter" or "percentage increase in sales volume in untapped territories" would be appropriate.
Define Quantifiable Metrics: The key to effective KPIs lies in their measurability. Each KPI should be quantifiable, allowing you to track progress and performance accurately. In the beer industry, some examples of KPIs include specific volume targets (in BBLS), sales activity, and new points-of-distribution. These metrics can provide a tangible view of individual and team performance and facilitate data-driven decision-making.
Set Realistic and Challenging Targets: KPIs should strike a balance between being achievable and motivating the sales team to strive for excellence. Setting unrealistic targets can lead to demotivation, while easily achievable ones might not foster growth. Consider past performance, market trends, and individual capabilities when defining KPI targets. For instance, if a sales representative has historically achieved a 10% growth rate, setting a 20% growth target could be a challenging yet feasible goal.
Regularly Review and Adapt: The beer industry is constantly evolving, making it crucial to regularly review and adapt your performance metrics. Monthly or quarterly assessments of the KPIs can help identify areas of improvement and opportunities for adjustments. Perhaps a specific product line is gaining traction and deserves greater focus, or a certain kind of account really seems to love your beer. Stay flexible and be prepared to modify KPIs to ensure they remain relevant and aligned with your ever-changing business needs.
Our team here are Resin has decades of experience in sales, marketing, and commerical management, and as part of our platform offering, we’re able to bring that experience to you. Reach out if you’re interested in learning more about the platform… we’re real people and we’d be happy to chat.
