KPIs: What They Are
and how they help managers

You have certainly heard the term KPI, as it is very common in the corporate world, especially in sales. You probably even have a rough idea of what it means. Today, we will explain how KPIs can help managers motivate their teams and increase sales.

What are KPIs and what are they for?

KPI stands for Key Performance Indicator. It can refer to a general or specific goal and is not necessarily quantitative -- but when it is, it can be measured manually (using spreadsheets, for example) or with specialized software.

KPIs essentially guide a manager's work. Through these indicators, professionals can track process and employee progress, making corrections or adjustments as needed to achieve objectives.

Types of KPIs

There are several types of KPIs. Here are two key examples:

1. Productivity KPIs

These typically involve the company's team and measure results achieved. For example, a "closed sales" KPI tracks deals completed by each team member over a specific period. This indicator helps evaluate whether a given employee is improving at acquiring new customers.

2. Quality KPIs

Quality KPIs focus on process evaluation -- they prioritize quality over quantity. For instance, if the top seller in a given month also received the most customer complaints, the manager should investigate their sales process to understand why.

Another classification you may encounter involves primary and secondary KPIs. For example, if the company needs to increase sales by 15%, this top-level target is a primary KPI. The smaller KPIs created by supervisors to achieve that goal are secondary KPIs.

How to create your own KPIs

A well-designed KPI must be:

• Specific -- clearly defined, leaving no room for ambiguity
• Measurable -- quantifiable with available data
• Achievable -- realistic given your resources
• Relevant -- aligned with business objectives
• Time-bound -- with a clear deadline

This is the well-known SMART framework. Apply it to every KPI you create and you will have a much clearer picture of performance.

After creating your KPIs

Once your KPIs are in place, the work truly begins. Track them consistently, share results with your team and use the data to drive conversations about performance improvement.

Regular review meetings, transparent dashboards and recognition for top performers all help create a culture of accountability and continuous improvement.

How to use KPIs effectively

KPIs are only valuable when they drive action. Here are best practices:

• Review KPIs weekly or monthly, depending on the cycle
• Share results openly with the team
• Use KPIs to identify training needs
• Adjust targets when market conditions change
• Celebrate wins and address gaps constructively

With tools like Promo MKT Report, KPI tracking for field teams becomes automatic -- from visits completed and photos captured to execution scores per store.