KPI of the head of the commercial department

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maksudasm
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KPI of the head of the commercial department

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The head of the commercial department must manage the sales process. As a rule, a former sales director is hired for this position.

In some companies, especially in developing sectors (for example, in retail), the commercial director is responsible for managing large departments, which are large structural divisions that include several smaller ones. Each of them is engaged in sales in a certain territory. Usually, such a department covers an entire region. Most often, each of them is managed by a separate sales director. The commercial top manager, in turn, is responsible for the overall sales plan at the level of the entire organization.

The role of this manager is to increase sales and expand the geographical coverage of the enterprise. In some cases, a company sales representative must be present in every locality in the country.

Commercial department

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Achieving global recognition uganda email list for the company is beyond the competence of the commercial director. However, coverage of all key economic regions of Russia is an achievable goal.

Key KPIs for the Head of the Commercial Department
achieving a certain turnover, sales plan or profit;

increasing the number of retail outlets in a given period or following the organization’s development plan (if there is a general plan);

percentage of new customers or territories in total sales;

percentage of overdue accounts receivable.

There is an alternative approach to building a KPI system. It can be used in companies where the list of responsibilities of the commercial director includes not only sales control, but also management of product development and promotion. In such cases, departments related to new products, marketing and advertising can also be under the leadership of this top manager.

It is important to remember that introducing new responsibilities does not mean abandoning old ones. The head of the commercial department is also responsible for sales and all aspects related to them.

At the same time, the expansion of functionality should be accompanied by the introduction of relevant key performance indicators into its workflow.

Now let's look at the approximate KPIs of a sales department manager:

number of exclusive contracts concluded with suppliers;

achieving a certain profit, sales plan or turnover volume;

the number of new customers acquired in a specific period of time;

the number of new products introduced over a given period of time;

the share of new products in the overall structure of the enterprise’s product range (it is better to evaluate the income from the sale of new products);

the percentage of potential clients who have shown interest in cooperation, etc.
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