Achieved versus Potential KPI Description
Achieved versus Potential KPI is another way to look at the performance of a Sales Territory compared to National performance, similar to Delta Market Share. In this case, the Individual (local) Market Share is divided, and not subtracted, from the National Market Share.
By assessing the gap between achieved results and potential outcomes, businesses can identify areas for improvement, evaluate the effectiveness of strategies, and make informed decisions to optimize performance.
Formula:
$$
\text{Achieved vs Potential} = \left( \frac{\Delta\text{IndividualMarketShare}}{\Delta\text{NationalMarketShare}} \right) \times 100
$$
Configurable Parameters:
- Brand: Select from a list of available products or brands to track sales performance.
- Relevant Market: A relevant market is a set of products, including own products and competitor products that fit in the same category.
- Measurement: Choose the unit of measurement, such as units sold, revenue, or volume, to align market sales calculations with the relevant metric.
- Level: Choose from different levels of reporting:
- Rep: Sales vs. target at the individual sales representative level.
- Manager: Sales vs. target aggregated by team or manager.
- National: Sales vs. target calculated at the national or organizational level.
- Target Period: Define the start and end dates for the calculation period to focus on specific time frames, such as monthly, quarterly, or annually.
- Allocation: Select the brick-to-territory allocation method to apply when calculating, allowing analysis based on specific geographic or assigned territories.
- Data Source: Choose the source of sales and target data, which could come from different vendors or represent different types of sales data (e.g., Sell-In, Sell-Out).
- Channel: Select the channel of sales/target values, such as in-store, online, or wholesale, to isolate performance by sales channel.