To me, if you have no idea what your closing rate is how do you know if you’re successful? Am I missing something here? Picture this. I’m your sales manager. You come strolling into my office and tell me that you closed the Larson deal for $125K. You’re excited because not only did you close a deal but you got a nice $5K commission check. Whoopdeedoo! I’m sitting there thinking to myself Big Frigging Deal! So What? Of course being the consummate professional and a manager with a semblance of a heart I don’t want to blow all your enthusiasm out of the water so I say congratulations, well done!
Underneath though I’m wondering about a few things:
- How many sales calls have you been on in X amount of time?
- How many closes do you now have YTD?
- What percentage of your sales calls turn into business?
- How many sales calls does it take on the same prospect before business is closed?
- How near to making target are you in terms of dollars and percentage?
- How many closes do you need for the fiscal year?
Sales is not completely a numbers game but certainly success on a continued basis has a lot to do with repeatable processes. Statistics are part of that. Why does the NFL have a combine in the Spring to evaluate college players? Baseball coaches evaluate potential fielders based on 5 key tools. There are statistics woven into both these sport situations. So why do salespeople blithely wander through their lives hardly ever thinking of a closing rate? Chances are pretty good that no one ever taught them the value of ratios. Nor have salespeople figured out that making significant money depends on performance, which will always tie into how many appointments, presentations, phone calls, connects, closes, average revenue of each close etc. are accomplished. And the coup de grace is how do sales calls relate to closes.
100 Proof Software even figured this out via the app Sales 2 Target. It’s not perfect but future iterations will improve the concept. I’ll make this wager. If you track your sales behaviors and create meaningful relationships between the behaviors (How many sales calls do you need to be on in order to close one sale as an example) you will increase your income by a minimum of 50%.
Have fun out there!