When I was a full time sales person I frequently exceeded my quotas and came very close to my predicted goals. It wasn’t done by luck. It was achieved by gathering information, following a plan, and hard work. You can do the same thing. Here’s the process.
What is your approval rating (close %)? Let’s start at the beginning—contact. If we define a contact as having a conversation with a prospect via email, phone, face-to-face, or social media—how many contacts does it take to get a lead? If we define a lead as a prospect willing to take a presentation—how many leads does it take to gain an order? Once you have this basic information, you can formulate the number of contacts needed to hit your quota. For example, if for every 10 contacts you develop one lead and for every five leads you gain one order it will take 50 contacts to make a sale. If your monthly quota is 10 sales, you’ll need to make 500 contacts divided by 25 working days = 20 contacts per day to hit your quota. Do you want to beat your quota? Do the math. How many contacts per day would you need to achieve 15 sales in a month?
To avoid confusion let’s stay with a monthly quota of 10 sales. To pace your sales results take the total number sales made MTD (month to date) divided by the days worked, times the total number of working days for the month. For example, if five days into the month you have two sales 2/5 = an average of .4 sales per day. Take .4 times the total number of days, in this case 25, which is .4 x 25 = 10 sales—you’re on pace to hit your quota. Do the math. If your goal is 10 sales in 25 days and you have 4 in the first 12 days what’s your pace?
If, at 10 days, you have 3 sales, 3/10 = .3 x 25 = 7.5 sales or 2.5 below quota. To hit your quota you’ll need to make adjustments. If you need seven sales to hit your quota of 10 and 15 days remain then you’ll need to average about ½ of a sale per day or 7 sales/15 days = .46 sales per day. And if it takes 50 contacts to make a sale you need to increase your contacts from 20 to 25 per day (rounded up). Do the math. If you have 10 days remaining in your month long goal and need five more sales how many sales per day will you need and how many contacts will be required?
If you want to meet and beat your quotas, you’ll need to track, pace, and adjust on a daily basis. At first glance, this may look difficult and daunting. Once you have the hang of it—it’s easy-peasy, and well worth the time and effort. For those of you who use CRM software it probably does all of this for you and more. However, there are two keys that many miss whether they use CRM or go old school. I already mentioned the first, TPA (Track, Pace, and Adjust) daily. Yes—do this every day. If you want to hit your numbers get obsessed with TPA… daily. Secondly, no computer program or spread sheet can make the adjustments for you. That’s on you, and the bottom line is it will mean a concentrated effort and a lot of hard work, but if you do the math you can amaze your co-workers and attain your predictions. I have a challenge for you; try this for the next 25 days. If you need help reach out to me. Are you ready to hit your numbers?