Some people say that sales is a numbers game–they’re right and they’re wrong. Sales is a numbers game only if you know the right numbers. Here are the sales numbers you need to know:
1. How many sales calls do you make per day, week, or month?
Selling is all about improving; you can always improve your productivity. How many more sales calls could you be making? Start by knowing how many calls you are currently making.
Determine your average. Then at the end of each day, week, or month determine if you are above or below your average. What are you doing differently in either case? Keep doing what you’re doing if it’s working; stop it if it’s sending your numbers south.
2. How many sales calls does it take to create a new customer?
Your sales objective is to make a sale. You are wasting your time by simply making more sales calls without creating more customers.
This sales number will tell you how long your sales cycle is and provides you with another metric to improve. Shortening your sales cycle allows you to pursue more business. It frees up your time to serve your customers more effectively.
3. How many prospects become customers?
It’s difficult to improve when you don’t know what to improve. A low number of prospects turning into customers tells you that you are not demonstrating your product’s value, you are calling on the wrong prospects, or you are lacking credibility when you sell.
All of these are serious issues that if unaddressed will cause you to fail.
4. What’s the profit on each customer?
You have a road map to fix your business when you know each customer’s profit. Unprofitable customers give you the opportunity to sell them more profitable products or services, and make them more profitable for you. You are unable to improve your business unless you know the amount of each customer’s profit contribution.
5. How many customers are you losing?
New business is great; however, it’s bad if it’s at the cost of losing existing customers because you’re not serving them correctly. It’s like having a leaky bucket. You won’t ever fill it up if it’s got a hole at the bottom. Look at your customer turnover number. How many customers do you lose per month or year? Reassess your sales process now if your number is too high.
When you play a game, you keep score. Keeping score of your sales will make you a winner at the sales game.