Learning Hub

Just one part of the most comprehensive library of content to help master your health – both personally and in business.

Why Sales Alone Is The Old School Way To Benchmark True Performance

For far too long, many health business owners have been obsessed with one performance metric – sales figures.

They get reported in all areas of their business.  We’ve been to quite a few different pharmacies in our time and have seen them plastered up on walls in the break rooms, used as Key Performance Indicators (KPIs) for team performance and if the leadership team are happy to share financials with their talent, this is the primary figure that gets shared.

Team meetings heavily focus on sales.  Medical reps come in and focus on sales and set incentives for the team to hit certain numbers.  So it’s been engrained in all levels of business that sales is the go-to performance indicator for not only the business itself, but of our teams, our relationships with our patients, our ability to pay our bills and even when we go to sell our business to determine what it’s worth.

Don’t get us wrong, sales is a very good indicator, but not of performance alone.  For us, we use it instead to measure productivity and efficiency.  So instead of the term sales, we look at sales as ‘customer spend’ instead.  This allows us to translate a sales figure into understanding how well your business is actually operating using another perspective of ‘resources in VS customer spend’.

If there’s a lot of resources going into getting a customer to spend, and with little result, then there’s something wrong.  On the other hand, if we’re not putting much effort into ensuring customers keep spending with us, sales might be inflated for a short period of time, but will quickly fade as the customer sees less value with spending their money with you.

Ensuring your business has the right structures, workflows, processes and systems to deliver the ultimate mix of resources in to get the desired customer spend out is just one piece (but a big piece) of the business performance pie.

Popular Post

You May Also Like

Are you ready to boost your business?

Zamil’s bespoke solutions often require bespoke implementation strategies. He is able to work with leaders and key team members to quickly achieve business goals.