More on Ratios – A Real Life Example
More on Ratios – A Real Life Example
I turned directly to the reps and asked them what it would take to open 3 new accounts per week. They gave me a lot of vague answers like a lot of late nights, many days on the road, one even said luck-lots of luck! I replied that I was thinking of something more specific. How many approaches do you have to make to talk to one decision maker? How many decision makers do you have to talk to get one appointment? How many first appointments turn into second and third appointments? And finally how many sales will you ultimately get? They didn’t have a clue!
I turned back to the VP and asked him where he got 3 per week from. He said that this is the correct number to hit the target. I pointed out that since his reps didn’t know what it took to get a sale likely his managers didn’t know either. He immediately asked the closest manager if that was true and got a “well”. (Some of you will know from previous articles that “well” is usually followed by a lot of run around!). I then asked him if it was possible that the real number of new accounts they could open per week might be 4. Or 6. Or 2. Or 9. He started to get my point. I explained that if the number came from the bottom up and was based on previous results two things would happen. First it could be counted on and repeated. Second it could be improved on. Also if everyone knew what it took to get the sale additional resources could be allocated to get more sales. The final benefit is that the people tasked with doing the work and rewarded (or not) for the results would have ownership of the process and there would be a much greater chance for success.
They agreed as a group that they would start to track these “new” numbers and see if it would help. When last I talked to them they were still slightly behind quota gut were making up ground fast.
I can’t stress enough the value of knowing what it takes to actually make a sale. Start with the most basic data. It will make a big difference down the road.
More on Ratios A Real Life Example - To learn more about this author, visit Don Mersereau's Website.
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Early last year I was working with one of our largest and best clients, a Fortune 100 international. At the lunch break served buffet style in the meeting room the Senior VP strolled in to chat. After a few minutes he went to the white board and wrote down- 3 PER WEEK. I noticed that as he did this he looked directly at a group of three representatives. Their demeanor changed instantly. They became very quiet and didn’t want to make eye contact with him. I quickly asked him about what he had written. He told me that the division he was referring to was behind quota and to catch up. They needed to open 3 new accounts every week for the rest of the year. I asked the reps if this was possible. Before they could answer he said it had to be.
I turned directly to the reps and asked them what it would take to open 3 new accounts per week. They gave me a lot of vague answers like a lot of late nights, many days on the road, one even said luck-lots of luck! I replied that I was thinking of something more specific. How many approaches do you have to make to talk to one decision maker? How many decision makers do you have to talk to get one appointment? How many first appointments turn into second and third appointments? And finally how many sales will you ultimately get? They didn’t have a clue!
I turned back to the VP and asked him where he got 3 per week from. He said that this is the correct number to hit the target. I pointed out that since his reps didn’t know what it took to get a sale likely his managers didn’t know either. He immediately asked the closest manager if that was true and got a “well”. (Some of you will know from previous articles that “well” is usually followed by a lot of run around!). I then asked him if it was possible that the real number of new accounts they could open per week might be 4. Or 6. Or 2. Or 9. He started to get my point. I explained that if the number came from the bottom up and was based on previous results two things would happen. First it could be counted on and repeated. Second it could be improved on. Also if everyone knew what it took to get the sale additional resources could be allocated to get more sales. The final benefit is that the people tasked with doing the work and rewarded (or not) for the results would have ownership of the process and there would be a much greater chance for success.
They agreed as a group that they would start to track these “new” numbers and see if it would help. When last I talked to them they were still slightly behind quota gut were making up ground fast.
I can’t stress enough the value of knowing what it takes to actually make a sale. Start with the most basic data. It will make a big difference down the road.
More on Ratios A Real Life Example - To learn more about this author, visit Don Mersereau's Website.
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David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr'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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 Don Mersereau (Visit Don's Website) Don Mersereau is an expert sales training consultant who has over 30 years of experience. In the last 3 years alone Don has worked with clients in 5 countries and 23 US States. No wonder his business is booming! Your company can naturally benefit from his wisdom and his experience. Mr Mersereau continues to work with clients from all over the world coming from various industries. If you or your sales team are beginning to plateau or just can't seem to shake bad habits, give us a call. DEI Ottawa wants to help you stay ahead of competition with highly efficient selling techniques taught by experienced sales training consultants. See how efficient sales techniques can increase your company’s productivity! Visit us on line at www. powerfulsalestraining.com or call toll free at 1866-434-1492
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