Sales Success Tips – How to Measure Sales Performance
If you’re a sales manager, or even if you’re just a sales rep it’s important to track your sales performance. These are the best ways to track your progress towards your targets. Always remember, when you’re tracking any statistics involved with achieving a goal, it needs to be measurable. Set a clear goal or outcome and make sure you stick to it. Your goal will need to be achievable, but make sure you’re stretching to achieve it.
1. How many customer contacts do you have. Often this is called the way to track when you consider that sales is a numbers game. The more people you speak to the more likely you are to make a sale. This is not always true, but it does mean that you’ve got a higher chance! Take a sheet of paper, and put each of your sales reps on the sheet. Have them make a check box next to their name each time they speak to a customer. At the end of the sales day you can work out their conversion rate, and often you’ll see that even though the conversion rates are not high, the people who have spoken to the most people have made the most sales.
2. Track and improve your conversion rate. This trick follows on from the previous one. If you’ve spoken to 100 people today, and sold products to 10 people, your conversion rate is 10% (100 divided by 10 equals 10%). If you’ve spoken to as many people as possible today then you would be hard pressed to speak to any more, so your best bet is to be able to sell to more of the people you sell to. Do this by adjusting your approach and testing different things. Do some sales training and modify your behavior so you can increase your conversion.
3. Sell more to the same people. This is another trick to be able to track your results. The key to this is being able to know how many people you speak to, your conversion rate and how much each person is buying. Say for example you speak to 100 people, sell products to 10 people and they each bought $200 worth of product. You can say that for each 100 people you speak to you’re earning $2000. ($200 times 10). The best way to increase your sales in this case is to increase how much you’re selling to each customer. Say you only sell an extra $10 to each person, you’ve already made an extra $200!
All in all, the best way to get good sales tracking data is to get good statistics. Track everything!