Want A Fail Proof Way To Predict Your Sales?
Do you start off each month with awesome sales goals and a vision for how you are going to accomplish it? If not, that’s your first problem!
Assuming you are starting off with a specific sales goal, let’s move into the bigger question. Are you hitting your sales goals? If not, we need to talk Business Strategy
Sales and Marketing go together like cake and frosting. There really isn’t much purpose in one without the other! If you want to increase your sales, you need to have leads. If you’ve got good lead flow and your sales stink, the business is not going to last.
Any good business strategy will involve tracking your numbers. In large companies, there are departments assigned to watching, tracking and analyzing the numbers. For entrepreneurs and small business owners, that task often falls to the business owner. And unfortunately, many of those business owners are afraid of or confused by their numbers. In fact, when I meet an entrepreneur who actually knows their numbers and uses them to run the business, I want to throw a celebration in their honor. That is how rare it is!
Here are 5 essential numbers you need to know in a strong business strategy!
- Closing Ratio: This number is simply the percentage of people you offer your product to divided by the number of people that purchase. Closing ratios will vary by industry and by price point. Find out what is standard in your industry and hold yourself and your team accountable to reach beyond industry standard. If someone on your team has a significantly lower conversion rate than the others, that is a sign, they are not a great fit for your position.
Cost Per Lead: To find this number, take the total cost of generating those leads and divide it by the number of leads generated. This number will help you calculate Return on Investment and know if you should say yes or no to a particular marketing event.
- Value per lead: To get this number, you will take the total sales generated and divide it by the number of leads it took to get those sales. This number used with the cost per lead will help you to know if your marketing is profitable. If it costs you more to get the lead than the sales you generate from those marketing strategies, your business is losing money when you bring in new customers.
- Percentage of people that schedule sales appointments with you: This is the second most important number when it comes to your sales. If this number is looking bad that means you are not even getting to the opportunity to promote your product or service. And it tells you that you either have a problem with your reach out script, or you are reaching out to the wrong group of people.
- Number of leads needed to reach your monthly sales goal: This is the number most business owners love to hate. They love this number because it shows them exactly what needs to happen for them to make sure they hit their sales goal. They hate this number for two reasons. First, it requires you to track every step of your process. The formula to calculate it actually requires 7 levels of data, so the formula is not as cut and dry. Second, it’s not a fun number to look at. It is almost always higher than we wish it was. But here’s the deal, the numbers don’t lie.
If you want a solid business strategy and predictable numbers, then you simply need to use these formulas!
Are you ready for me to be your best friend? I am going to create a template that calculates ALL of these numbers for you! And I would love to give it to you for FREE!
Stay tuned because it will be available the beginning of May 2016! Let’s take your sales to the next level! See more: http://amywalkerconsulting.com/
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