The KPI performance appraisal of operation (sales) personnel is based on sales, store performance, advertising conversion rate, inventory turnover rate, etc. as appraisal indicators.
Performance Appraisal
①Sales.
Specifically formulated according to the actual target decomposition of the enterprise, for example, the annual target of the enterprise is 100 million yuan, and the average distribution is 8.3333 million yuan per month. The Amazon platform must consider the off-season factors. Usually the fourth quarter is the peak season, and the target decomposition can be more, and less in the off-season. The assessment weight is recommended to be 30%.
②Store performance.
Store performance is related to whether the store can operate sustainably, and it is necessary to ensure that all indicators meet the standards. For example, the order late delivery rate must be <4%, the order cancellation rate must be <2.5%, the order effective tracking rate must be greater than 95%, the order on-time delivery rate must be greater than 97%, the order defect rate must be less than 1%, and the order return dissatisfaction rate must be less than 10%. The assessment weight is recommended to be 20%.
③Advertising conversion rate: Advertising conversion rate is related to the cost investment effect of the enterprise. If the performance appraisal of the salesperson is not linked to the cost, then the salesperson will pay more attention to sales and ignore the cost, because he does not need to be responsible for the cost, and the cost will not affect his commission. A cross-border boss told me before that the company’s performance appraisal is mainly based on sales, not linked to the cost, and then the salesperson advertised crazily, resulting in high corporate advertising costs, but the advertising conversion rate did not have the expected effect. Because there is no need to be responsible for the conversion rate, there will be no serious study of the advertising effect, which is not a good thing for the company.
Advertising conversion rate can be formulated based on the nature of the company’s products and the conversion rate level of the same industry. The assessment weight is recommended to be 10%.
④Channel profit.
Operation (sales) personnel need to be responsible for the company’s profits, which mainly refers to channel profits (operating income-variable costs). Channel profits do not deduct fixed costs, but deduct variable costs. Variable costs include: product costs, first-leg logistics fees, Amazon platform fees, third-party overseas warehouse fees (if any), off-site advertising fees, VAT taxes (Europe), etc. Being responsible for profits can allow salesmen to pay more attention to product costs and profits, rather than just focusing on sales. Focusing on sales and ignoring costs and profits may result in high turnover, but due to the lack of cost control, the cost is too high, the profit margin is very low, or even no profit.
The enterprise channel profit can be calculated based on the enterprise’s annual target profit margin and the monthly target can be broken down. The assessment weight is recommended to be 30%.
⑤ Inventory turnover rate.
The most direct correlation between the inventory turnover rate indicator and the sales speed is the faster the sales speed, the faster the inventory flow speed, the faster the capital recovery, and the less pressure on the enterprise’s inventory funds. The inventory turnover rate can determine the enterprise’s inventory turnover rate indicator based on the company’s product characteristics and the industry average level. The assessment weight is recommended to be 10%.