How many times have you heard that sales is a numbers game? In other words, if you do the numbers you can reach your goals. Sales actually is a science, and it's true that if you simply do enough activity, you can reach your new account, revenue and income goals.
While there is a formula to help simplify the necessary evil of doing
the numbers, it does require some work on your part and, although the
formula is universal, your success in applying the formula will depend
somewhat on your individual skill level.
While most, if not all, sales organizations set quotas for their
salespeople, many do not outline the activities required to reach
quota. Unless and until you know what activities are required to reach
your goals, there is no way you can reach quota consistently.
Regardless of your sales skill level, a big part of sales simply is
doing the numbers, that is, making enough contacts that the required
percentage will result in sales. The formula, therefore, is made up of
activities that can be tracked to create ratios that illustrate your
current sales skill level and show areas that need improvement. Where
your skill level comes into play is the actual numbers required in each
phase of the doing-the-numbers formula.
The elements of the formula are calls, connects, voicemails,
callbacks, appointments, proposals, sales and value. Each of these
elements represents the activities required within the sales process to
reach your sales quota. Begin by creating a worksheet that lists the
above eight elements horizontally across the top of the page.
Start by tracking the number of outbound calls you make each day. A
call is defined as dialing the phone, whether you reach the decision
maker or not. Next, track the number of times you actually connect with
the decision maker. Leaving a voicemail message is not considered a
connect; however, you will want to track the number of voicemail
messages you leave for decision makers as a part of your activities
tracking exercise.
Then, track the number of times decision makers call you back, based on
the voicemail messages you leave, in the callbacks section of the
worksheet. Also, track the number of appointments that result from
connecting with decision makers. Next, track the number of proposals
that result from the appointments you have with decision makers.
Finally, track the number of actual sales and the dollar value of those
sales that result from the proposals you present to decision makers.
Ratios are calculated by adding up the total numbers from each column
and then dividing the appropriate activity. For example, if you want to
know how effective you are at converting connects with decision makers
to appointments, you would divide the total number of appointments by
the total number of connects to get a percentage that represents the
ratio of how effective you are at getting appointments.
If you want to track the ratio of calls to sales, divide the total
number of sales by the total number of calls to get your calls to sales
ratio. You can follow this process for any number of combinations to
get a percentage that represents your effectiveness at each point in
the sales process.
Completing the numbers worksheet on a daily basis will tell you how
many calls, connects, appointments and proposals you need to reach your
account, revenue and income goals.
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