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Setting KPIs and Targets – How to Work Backwards

Day 2 of 30 · Build Your Sales – 30 Days to More Deals

Today you'll learn how to set measurable targets that actually work. The key: start with the end result and work backwards.

Daily Goal

  • Understand what a KPI is and why it matters
  • Learn the "work backwards" method
  • Set your own KPIs for every funnel stage
  • Create a KPI tracking table

Why it matters

  • Bad target = bad result. If your target is "many deals", you'll never achieve it.
  • Work backwards: If you know how many deals you want to close, you know how many leads you need.
  • Measurability: Without KPIs, you don't know if you're doing well or not.
  • Motivation: Concrete numbers motivate, not "hoping".

Explanation

What is a KPI?

KPI = Key Performance Indicator

This is a measurable value that shows how close you are to your goal.

Examples:

  • Daily new leads count
  • Weekly demos count
  • Monthly closes count
  • Conversion rates (%)

The "work backwards" method

This is the most powerful method for setting targets:

  1. Start with the end result: How many deals do you want to close monthly? (e.g., 4 deals)
  2. Work backwards with conversion rates:
    • 4 closes ÷ 25% (Engaged → Closed) = 16 engaged needed
    • 16 engaged ÷ 33% (Connected → Engaged) = 48 connected needed
    • 48 connected ÷ 24% (Qualified → Connected) = 200 qualified needed
    • 200 qualified ÷ 50% (Lead → Qualified) = 400 leads needed
  3. Break down into daily/weekly targets:
    • 400 leads ÷ 20 workdays = 20 leads/day
    • 48 connected ÷ 4 weeks = 12 connected/week

Setting KPIs for every stage

Stage KPI Daily Target Monthly Target
Lead New leads count 20 400
Qualified Qualified leads count 10 200
Connected First conversations count 2 48
Engaged Demos count 0 16
Closed Closed deals count 0 4

Examples

Good example: Concrete KPIs

Monthly target: 4 closes

  • Daily 20 new leads (LinkedIn, email, website)
  • Weekly 12 connected (phone, email response)
  • Monthly 16 demos (demo, proposal)
  • Monthly 4 closes

Why it's good: Every KPI is measurable, concrete, and connected to the end result.

Bad example: Vague targets

Monthly target: "Many deals"

  • "More leads"
  • "Good connections"
  • "Hope we close some"

Why it's bad: No measurable KPI, no control, no forecasting.

Practice 1 – Work backwards (20 min)

  1. Set a monthly closing target: How many do you want to close? (e.g., 4 deals)
  2. Use conversion rates:
    • Engaged → Closed: 25%
    • Connected → Engaged: 33%
    • Qualified → Connected: 24%
    • Lead → Qualified: 50%
  3. Work backwards: How many leads, qualified, connected, engaged do you need?
  4. Break down into daily/weekly targets: How much do you need daily/weekly?

Practice 2 – KPI tracking table (15 min)

Create a KPI tracking table:

KPI Target Actual %
Daily new leads 20 0 0%
Monthly closes 4 0 0%

Task: Fill this table every day and see where you are relative to your target.

Key Takeaways

  • Start with the end result. If you know how many deals you want, you know how many leads you need.
  • Every stage needs a KPI. It's not enough to focus only on closing.
  • Daily tracking = control. If you don't measure daily, you lose control.
  • Adjust if needed. If conversion rates change, update your KPIs.

Optional Resources