Use these 2 key ratios to monitor sales efforts

Question:

If there were only a few numbers you could use to gauge your sales performance, what would they be?

In this video, Laura Livesey tells us which key performance indicator non-sales professionals should be looking at to judge their effectiveness.

Answer:

“The number one thing we look at are conversion rates. These conversion rates happen, when you are out at a trade show or when you are out talking to clients/prospects.

The conversion rate is: how many people after having had a brief conversation with you actually then agree to have a further conversation, a more formal conversation, where you sit down and you actually talk about potentially doing business together. So this is the first conversion rate that we look at. Taking somebody who is very casual to someone who actually agrees to have a sales appointment with you.

The second conversion rate that we look at is the close rate.

The close rate is the percentage of people that having had a sales conversation with you actually sit down and decide to become your customer.

So those are the 2 most important metrics that you want to be looking at with your professional team.”

We use these numbers to identify the 6 ways to grow your business, the six ways being:

1. increase your enquiries
2. increase your conversion rate from enquiries to appointments
3. increase your conversion rate from appointments to customers
4. increase your transactions per customer
5. increase your price
6. increase your margins

Learn more about the 6 ways to grow your business, or better yet, to get in touch with us so that we can take you through this process to see how much you can grow.