Why Ratios are so Important
Why Ratios are so Important
I often start a meeting with Sales Managers for the first time by asking what their sales reps do all day. As you might imagine I get some very interesting answers. They usually fall into two groups. The first is I have no idea. The second answer starts with well... When someone answers a tough question with “Well” I know I am about to hear... well something less than truthful!
The real answer is that the Managers are not tracking useful information. When I meet with someone it is usually because they don’t like the results they or their team are getting. Therefore they want a different better result. Unfortunately they usually are paying attention to, rewarding and generally focused on the results. What they should be concentrating on is the front end activity that will eventually lead to the results. They should be asking very basic questions like- How many times this week did you try to talk to someone new? Not how many sales did you make?
My Ratios are 15:7:1. Every day I pick up the phone 15 times, I talk to 7 people and set 1 appointment, on average. Of course some days the numbers are different but over time they work out. If I do this 5 days a week I will set 5 appointments a week. On average I will have 3 second or third appointments per week for a total of 8. This will lead to one sale per week.
Now here comes the rub! If I make 15 calls on Monday and don’t set any appointments how do I feel? Nothing is different except the result. I am calling the same type of company in the same area but no appointments. When I put this to a group in training I hear “you feel bad, lousy”. Then I say what if it happens again on Tuesday? Then I hear you are depressed or very distressed.
Then I say what if it happens all week? Well they say I should be ready to quit! But of course I tell them I get excited, pumped up. I can’t wait to call tomorrow! Why? Because the ratios are not one day or one week or even one year. They hold true over very long periods. This means I must be about to get a run of success. The pros know this, the amateurs quit just when things are about to turn.
Measure the activity then let the results flow.
Why Ratios are so Important - To learn more about this author, visit Don Mersereau's Website.
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A lot has been said and written about tracking ratios. I want to address two things here. First the importance of tracking the right ratios and second how to use that information.
I often start a meeting with Sales Managers for the first time by asking what their sales reps do all day. As you might imagine I get some very interesting answers. They usually fall into two groups. The first is I have no idea. The second answer starts with well... When someone answers a tough question with “Well” I know I am about to hear... well something less than truthful!
The real answer is that the Managers are not tracking useful information. When I meet with someone it is usually because they don’t like the results they or their team are getting. Therefore they want a different better result. Unfortunately they usually are paying attention to, rewarding and generally focused on the results. What they should be concentrating on is the front end activity that will eventually lead to the results. They should be asking very basic questions like- How many times this week did you try to talk to someone new? Not how many sales did you make?
My Ratios are 15:7:1. Every day I pick up the phone 15 times, I talk to 7 people and set 1 appointment, on average. Of course some days the numbers are different but over time they work out. If I do this 5 days a week I will set 5 appointments a week. On average I will have 3 second or third appointments per week for a total of 8. This will lead to one sale per week.
Now here comes the rub! If I make 15 calls on Monday and don’t set any appointments how do I feel? Nothing is different except the result. I am calling the same type of company in the same area but no appointments. When I put this to a group in training I hear “you feel bad, lousy”. Then I say what if it happens again on Tuesday? Then I hear you are depressed or very distressed.
Then I say what if it happens all week? Well they say I should be ready to quit! But of course I tell them I get excited, pumped up. I can’t wait to call tomorrow! Why? Because the ratios are not one day or one week or even one year. They hold true over very long periods. This means I must be about to get a run of success. The pros know this, the amateurs quit just when things are about to turn.
Measure the activity then let the results flow.
Why Ratios are so Important - To learn more about this author, visit Don Mersereau's Website.
Like this article? Share it with your friends
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