At our Expert Talk “Measure, Don’t Complain,” more than 100 guests learned the importance of steering business processes through measurable performance indicators. Thilo Kerner, Chief Revenue Officer at Sybit, Georg Aholt, Head of the Center of Excellence, Business Analytics & Information Management at NTT DATA Business Solutions AG, and Jana Kiechle, Head of Marketing & Business Development, discussed how collaboration between business departments and IT can enhance a company’s performance and help achieve strategic goals more efficiently.
KPIs in Sales and Customer Service
KPIs (Key Performance Indicators) are crucial for measuring and managing a company's success. They enable organizations to evaluate the performance of sales and service departments, set goals, and take corrective action when necessary. Some KPIs are particularly vital for sales leaders. Quarterly and annual revenue targets provide a clear indication of whether the company is on track to achieve its financial objectives. The conversion rate, which measures how many sales opportunities lead to actual orders, is also a key metric. However, the talk emphasized one crucial point: KPIs that provide transparency into the sales pipeline — showing whether there are enough potential deals — are often underdeveloped in many organizations, despite having a significant impact on sales management and success. These KPIs help guide and improve the performance of sales teams.
The relevant KPIs in customer service vary depending on the area. The First Time Fix Rate, which measures how often a service technician resolves a problem on the first visit, is crucial for field service. In call centers, average call handling time is a key efficiency metric. The Net Promoter Score (NPS) measures customer satisfaction and loyalty, serving as a valuable general quality indicator. These KPIs help monitor service quality and ensure customer satisfaction.
Close Collaboration Between IT and Business Departments Is Essential
Implementing KPIs comes with challenges. Without high-quality data, KPIs are meaningless. Ensuring data quality at the source and continually improving it is critical. Everyone involved must understand how the KPIs are calculated and what data they are based on. Additionally, the seamless integration of data from different systems and sources must be ensured. These challenges require careful planning and close cooperation between departments.
Several solutions to these challenges were discussed during the Expert Talk. Data management systems like SAP DataSphere help maintain high data quality, while self-service analytics tools such as SAP Analytics Cloud allow business users to create reports and analyze data flexibly. Close collaboration between IT and business units is essential to meet the growing demands for data and analytics. KPI frameworks should be regularly reviewed and adjusted to stay aligned with business goals. These steps ensure that KPIs can be effectively utilized.