Have you ever heard the expression “What gets measured gets managed?”
Or my personal favorite is “If you don’t measure it, you don’t want it”
Today we are going to look at 3 three most important numbers you should be keeping track of if you want to increase your sales.
These numbers are important because unless you are measuring them, you will not know where to begin to improve them. And improving these numbers will always lead to making more money in your business. So stop throwing mud on the wall and start measuring these three numbers to grow your sales strategically.
Meet Vanessa. Vanessa is a health coach and she will be helping us by showing us what she’s been up to this week. Thank you Vanessa!
No 1. The first thing you should be measuring is the number of sales conversations you had.
This week Vanessa had 5 coffee dates with people who expressed interest in her services at a networking event she attended. She also conducted 3 free sessions that she got by handing out voucher. And she was contacted by 2 of her Facebook fans about helping them keep their new years resolutions to lose weight. That means Vanessa had 10 sales conversations this week.
In a spreadsheet you will enter the names of each of the people you had conversations with and number them so you can clearly see the total number of conversations you had. This is what Vanessa’s sheet looks like.
Step 2 in the next column of your spreadsheet put a 1 if they bought from you, and a 0 if they didn’t.
At the end of the week you can work out the total number of sales and what your conversion rate was. Your conversion rate is the number of sales over the number of people you had conversations with expressed as a percentage.
If you are not used to using excel here is the simple formula you can use: Number of sales over number of people times 100 equal your conversion rate. Vanessa’s would look like this: 2 sales over 10 conversations times 100 equals a conversion rate of 20%! Well done Vanessa – that’s a great conversion rate for someone who has never done any sales training?
Step no 3: In the next column enter the $ value of what the 2 sales were worth.
Vanessa gives her clients 3 ways to work with her. They can buy her book for $29, they can do her 6-week detox for $1500 or they can work with her 1-1 for 3 months to lose 10kg at $2000.
Of the two people who bought from Vanessa this month one bought her book at $29 and the other one signed up to her 3 month 1-1 program at $2000. Vanessa’s total sales for the week are $2029.
But we don’t want to stop there. Vanessa wants to know what the average $ value of her sales was. To work that out she uses the formula: total $ sales over number of sales. So the average $ value of one sale for Vanessa was $1014.50c this week.
Now Vanessa has measured the three most important numbers to be able to grow her sales.
She has 1. The number of sales conversations she had, no 2. her conversion ratio and no 3. the average $ value of each sale.
Now you may ask, “how does knowing this help me make more money in my business”? Well, now you have three things you can influence and keep measuring to know if what your doing is working or not. Vanessa can make more money in her business by influencing three measurable outcomes.
She can generate more leads and create more opportunities for sales conversations. Or she could improve her sales skills to get a better conversion ratio Or she can focus on selling more of her higher priced programs.
Whichever one she chooses to work on, when she improves, she makes more money. And it all starts with measuring a few simple numbers.
To help you get started measuring your sales outcomes, I have created a free downloadable template you can use to measure your sales numbers!
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