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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Cheryl MatthynssensCheryl is a life skills coach, licensed Chemical Dependency Counselor and a 20 year entrepreneur. Cheryl's dedication to achieving a life of balance led to her expanding her teaching from the simple managing of life's daily challenges to adding financial well being as well. A direct marketer with DrinkACT, she is gaining ground in the online community with her concepts of making sure business owners, entreprenuers and employees have well rounded life styles. She opened up a small affiliate site - The Balance Guide- to help others find resources for mental and emotional well being. Visit Cheryl's blog to see more of the diversity beyond business she has began offering online at www.thebalanceguide.blogspot.com - Visit Cheryl Matthynssens'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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Staging DivaDebra Gould, aka The Staging Diva®, is President of Six Elements Inc., an internationally recognized home staging company. Inspired by many requests from aspiring home stagers wanting to start similar businesses, Gould created the Staging Diva Home Staging Business Training Program. Gould has trained over 1000 Staging Diva Graduates worldwide to start staging businesses. Buying decorating and selling six of her own homes in four years lead to an interest in real estate staging which she turned into a career with the launch of sixelements.com in 2002. Since then she has staged hundreds of homes in addition to teaching home staging training. Gould is the author of several home staging resources including a series of popular ebooks made up of a Design Guide, Color Guide and Portfolio Guide. For more information about Debra Gould visit stagingdiva.com. - Visit Staging Diva's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek'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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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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