What is the formula for KPI ratio?
Ugh, "KPI ratio formula"? That sounds so formal and…bleh. Like, who actually talks like that? It's more about understanding what you're really trying to measure, you know?
When I'm trying to figure out how well my sales efforts are going, I don't think about some fancy formula. I think about the real stuff. Like, okay, how much money actually landed in my bank account (received revenue) versus how much I thought I was going to get (invoiced revenue)? That right there tells a story. Are those numbers close? If not, why? Am I not closing deals effectively? Are invoices getting lost in the mail? (Okay, maybe not lost, but you get the idea.) It gets you thinking.
And then, something I've really started paying attention to is how much I'm actually earning for every hour I'm on the phone. I mean, I had this one week where I was practically glued to my headset, but the sales were just…meh. It was so frustrating! I realized I was spending way too much time on small-talk and not enough time actually selling. So, yeah, that was a wake-up call. Now I’m all about maximizing my talk-time, you know? Making every minute count. So, for me, that’s a key performance indicator – what I bring in per hour. Makes way more sense than some abstract formula, doesn't it?
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