Oana Boteanu Staff asked 7 years ago
How do I measure the KPI for business development? Any formula? Need to calculate/numeric figure to measuring BD efforts. Posted by Ikrama A. Virk
KPI Units: %
KPI Time Frame: update once a month
These KPIs will highly depend on the type of business, and what are the goals of your business development. I think that the best way to measure BD efforts is by using development goals as the benchmark.
So, let’s assume that your business development goals are to:
1. Increase sales by 40% by the end of measuring period (e.g. 1 year)
2. Increase customer base by 30 % by end of measuring period (e.g. 1 year)
3. Expand business premises
Etc.
Now your business development strategies put in place will work towards those goals, and so should the KPIs.
If you have a strategy-business development effort set in place for acquiring new customers, you can use the following KPI:
% of new customers
Total number of customers at the end of measurement period / Total number of customers at the beginning of measurement period x 100
This will help you monitor growth in customer base. Now you may have already set as part of your plan, let’s say a KPI of 15 % increase by the first 6 months. Measuring this will show you actual progress against planned progress.
I hope this help. Please feel free to post again for further support.
If you send us some details of you type of business and your development goals, we could help you with a few more specific KPIs.
Dear Oana,
Thank you for your input. We are business process outsourcing (BPO) and IT Solutions company based out of South-East Asia, looking forward to sustainable growth. In terms of development goals, we want to establish regional presence and increase revenues to a certain figure.. Our core services includes Call Center, Software Development, Technical Support, Data Management and Accounting Services. Need to have certain KPI’s in place that would measure the Business Development efforts.
Thanks Ikrama A. Virk
Ikrama,
As you mentioned your business offers services such as Call Center and Software Development, please refer to the links below, where we have long lists of KPIs in those sections. Under each KPI is also a comment with further details, check those out for further insight.
- KPI category: Software Development/Quality
- KPI category: Call Center
In terms of your business development, your KPIs need to be in alignment with your strategy. You can pinpoint what you strategically plan to drive your goals with. You mentioned one of your goals is to establish a regional presence. You can set in place quarterly KPIs and measure how a certain part of your strategy has helped to improve your regional presence. In terms of revenue increase, you can measure by % Increase in Revenue. As you said you already have a revenue goal, you can set KPIs in place for every quarter to achieve a certain % of that desired revenue growth.
If, for instance, your strategy is to gain new customers in order to increase revenue you could measure % of new customers.
This is a good KPI for it:
Improving the quality of your services could also drive business growth, so you can measure that. You will find examples on the software quality link I sent you. Check out this links as well, requests from clients, they may help you.
- KPI: Measuring of growth
The aim in keeping KPIs is to track performance and keep a learning curve. If you don’t achieve your aim, you will have enough data to know what went wrong, and based on that you can improve. If you did achieve your goal, you can see what triggered it and use it to further develop your business.
I hope this helps you. Please feel free to check out our wide range of KPIs on the website, you will probably find lots of them applicable to your situation. For any further requires, post again and I am happy to help.
