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How Crunching Key Sales Numbers Will Increase Sales & Help You Sell Smarter not Harder

Written by: Leanne Hoagland-Smith

Article Overview: 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?

How Crunching Key Sales Numbers Will Increase Sales & Help You Sell Smarter not Harder

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!

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Article Tags: 12 months, accountants, business coaches, comfort zone, current sales, desire, financial advisers, growth goal, information technology consultants, insurance agents, lawyers, marketplace, mortgage brokers, realtors, sales numbers, sales professionals, sales transactions, signs, small business owners, week 1



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