Practical Sales Training™ > How To Convert > KPI
KPI
What Is It?
A KPI, or Key Performance Indicator, is a target you agree with your buyer. It gives everyone one clear thing to focus on. And it means success has an actual definition, instead of just a feeling.
Why Does It Work?
It works because it removes uncertainty completely. Everyone knows precisely what you’re trying to achieve. That’s more useful than a vague sense of progress. So when you report back to a client, they see real movement along the way.
How Can You Use It?
Agree It Before Work Begins
Agree the target, the timescale, and how you’ll track it. Do this before the work begins. Keep it simple enough that both sides remember it without checking notes. Don’t forget that an emergency action plan is a great asset to have ready if things go off track.
Choose Your KPI Type
Here are some of the shapes a KPI can take.
- Increase in something
- Decrease in something
- Eradicating something
- Creating something
- Speeding something up
- Slowing something down
- Improving on previous performance by a percentage or fixed number
When It Works Best
This works best when the goal is genuinely measurable. Think a number that moves up, down, or vanishes entirely. It also helps when you report progress regularly, not just at the finish line. So the KPI proves progress is happening along the way.
When It Becomes Dangerous
This becomes risky if you set a target you can’t actually hit. Then the KPI turns into a countdown to disappointment. So agree on something ambitious, but realistic enough that you can defend it later.
Common Mistakes
Setting A Vague Target
Don’t set a KPI so vague it means nothing. “Improve things” isn’t a target, it’s a wish. A real KPI always has a number and a deadline attached.
Going Silent Until The Deadline
Never wait until you’ve missed the KPI to mention progress. Regular updates protect the relationship. Silence until the deadline just breeds anxiety on the other side.
KPI – An Example
A Digital Marketing Agency’s KPI
An e-commerce brand hires a digital marketing agency to run Facebook ad campaigns. Instead of vaguely promising more sales, they set a clear KPI:
“Our goal is to increase your website conversions by 20% over the next 90 days, while maintaining a cost-per-acquisition under £15.”
By defining precise metrics, both sides know exactly what success looks like. The agency also shares a monthly progress report, showing the trend toward that KPI. This reassures the client that things are on track.
When results slip one month, the agency activates an emergency action plan. They adjust ad creatives and audiences to bring performance back on track. This response demonstrates real accountability.
See also
- SLA – Service Level Agreement
- QER – Quantifiable End Result
- 100+ ways to differentiate
- 180+ ways to improve conversion
