How Crunching Key Sales Numbers Will Increase Sales & Help You Sell Smarter not Harder
How Crunching Key Sales Numbers Will Increase Sales & Help You Sell Smarter not Harder
I am continually amazed at the number of small business owners or sales professionals be them manufacturers, retailers, distributors realtors, mortgage brokers, insurance agents, financial advisers, lawyers, accountants, information technology consultants and even business coaches who do not now their numbers. No wonder they are working harder not smarter.
Here are some critical key numbers that every sales professional should know to be able to efficiently and effectively increase sales:
1.Total Sales for the last 12 months
2.Average sale value for the last 12 months
3.Number of active clients (those conducting business within the last 12 months)
4.Number of sales transactions for the last 12 months
5.Historical sales growth for the last 5 years
6.Average profit per average sale for the last 12 months
Let’s say that you currently generate $240,000 in sales. Breaking this down further means on average that you receive:
$20,000 in sales per month
$5,000 in sales per week
$1,000 in sales per day
Now you determine that your average sale is $100 and this means that you must have 10 orders per day to make your current sales levels. You want to increase your sales from the historic growth of 7%-9% to at least 15% which is almost double your historical growth and starts to make you feel somewhat uncomfortable. Yet, you know that your marketplace is growing, more and more competitors are hanging up their signs so you believe that this is possible. Sales Coaching Tip: To be competitive means you must leave your comfort zone and that will make you uncomfortable.
To reach your new growth goal means an additional $36,000 in new sales or $3,000 more a month. This translates to 30 more transactions per month (average sales value is $100) or 1.5 more new sales per day. When you begin to crunch the numbers, securing another 1.5 sales does not seem that impossible.
Now you further realize that your existing customer base of 100 active clients make on average of 2 purchases a month. By doing the math, you quickly determine that by increasing monthly purchases to 3 for 10% of your customers, you can easily pick up another $12,000 in sales. Sales Coaching Tip: Look for the low hanging fruit that is probably there, but you ran by it because you just did not see it.
In reviewing your inactive clients of 300, you notice that some of them buy once a year. If you make sure that just half of them buy twice a year, instead of just one time, you can add another $15,000 to your total sales. Sales Coaching Tip: Working with existing client is much more cost effective than trying to find new customers.
Finally, in your historical growth you receive an average of 10 new customers per year. Your research suggests that only one third of them will buy twice a month and the rest will purchase only one time. This results in another $12,000.
Your projections look something like this:
$12,000 from additional monthly purchases for 10 existing customers
$15,000 from one additional purchase from 50% of inactive customers
$12,000 from historical growth of 10 new customers
$39,000 in total projected new sales by focusing on just 3 sales areas
All of a sudden you see that you can achieve your sales goal and with some additional sales to spare. This activity is much like answering the question: How do you eat an elephant? Answer: One bite at a time. By taking small bites in specific areas, you can increase sales.
Now you understand the importance of knowing your sales numbers. So get the #2 pencil out or the Excel spread sheet and start crunching those numbers!
How Crunching Key Sales Numbers Will Increase Sales Help You Sell Smarter not Harder - To learn more about this author, visit Leanne Hoagland-Smith's Website.
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In sales, it is the simple actions that generate the greatest results. If your desire is to increase sales, then take some time to crunch your key sales numbers. Taking this action allows you to work smarter not harder. So what are those key sales number?
I am continually amazed at the number of small business owners or sales professionals be them manufacturers, retailers, distributors realtors, mortgage brokers, insurance agents, financial advisers, lawyers, accountants, information technology consultants and even business coaches who do not now their numbers. No wonder they are working harder not smarter.
Here are some critical key numbers that every sales professional should know to be able to efficiently and effectively increase sales:
1.Total Sales for the last 12 months
2.Average sale value for the last 12 months
3.Number of active clients (those conducting business within the last 12 months)
4.Number of sales transactions for the last 12 months
5.Historical sales growth for the last 5 years
6.Average profit per average sale for the last 12 months
Let’s say that you currently generate $240,000 in sales. Breaking this down further means on average that you receive:
$20,000 in sales per month
$5,000 in sales per week
$1,000 in sales per day
Now you determine that your average sale is $100 and this means that you must have 10 orders per day to make your current sales levels. You want to increase your sales from the historic growth of 7%-9% to at least 15% which is almost double your historical growth and starts to make you feel somewhat uncomfortable. Yet, you know that your marketplace is growing, more and more competitors are hanging up their signs so you believe that this is possible. Sales Coaching Tip: To be competitive means you must leave your comfort zone and that will make you uncomfortable.
To reach your new growth goal means an additional $36,000 in new sales or $3,000 more a month. This translates to 30 more transactions per month (average sales value is $100) or 1.5 more new sales per day. When you begin to crunch the numbers, securing another 1.5 sales does not seem that impossible.
Now you further realize that your existing customer base of 100 active clients make on average of 2 purchases a month. By doing the math, you quickly determine that by increasing monthly purchases to 3 for 10% of your customers, you can easily pick up another $12,000 in sales. Sales Coaching Tip: Look for the low hanging fruit that is probably there, but you ran by it because you just did not see it.
In reviewing your inactive clients of 300, you notice that some of them buy once a year. If you make sure that just half of them buy twice a year, instead of just one time, you can add another $15,000 to your total sales. Sales Coaching Tip: Working with existing client is much more cost effective than trying to find new customers.
Finally, in your historical growth you receive an average of 10 new customers per year. Your research suggests that only one third of them will buy twice a month and the rest will purchase only one time. This results in another $12,000.
Your projections look something like this:
$12,000 from additional monthly purchases for 10 existing customers
$15,000 from one additional purchase from 50% of inactive customers
$12,000 from historical growth of 10 new customers
$39,000 in total projected new sales by focusing on just 3 sales areas
All of a sudden you see that you can achieve your sales goal and with some additional sales to spare. This activity is much like answering the question: How do you eat an elephant? Answer: One bite at a time. By taking small bites in specific areas, you can increase sales.
Now you understand the importance of knowing your sales numbers. So get the #2 pencil out or the Excel spread sheet and start crunching those numbers!
How Crunching Key Sales Numbers Will Increase Sales Help You Sell Smarter not Harder - To learn more about this author, visit Leanne Hoagland-Smith's Website.
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
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George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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