Developing a sales formula is a fundamental process that separates a good sales person from a lucky sales person. Knowing what activities to do, when to do them in the sales cycle, and how to define success is critical.
This is needed for all sales people, from the beginner developing his business to the experienced professional looking to grow his business to the next level.
Example sales formulas in different environments:
- Telesales – 50 Cold Calls = 10 Contacts = 5 Quotes = 1 Sale
- Pharmaceuticals – 10 office visits = 4 doctor meetings = 2 samples
- Life insurance – 10 calls = 3 visits = 1 policy
The sales formula are the numbers needed to maximize success. Often these numbers are never completely understood or taken seriously enough to bring into action. It is like losing weight. You need to know what to eat, when to eat, herbalincenseheadshop what types of food to eat, etc. However, nutritionist will have you track these items to measure success. A personal trainer will give you their formula for exercise, and will also track your progress.
In any situation where you want to have sales success, You need to know where you are doing well and where you have a point of pain.
Putting the formula to work:
If you are a cold calling salesman with the above formula, you hit your 50 calls each, get 10 contacts, but only 2 quotes then you have an area for improvement. What could cause it?
- Maybe you have poor contacts and need to make sure you are talking to decision makers
- Maybe you do not know how to profile well to understand a customer’s need wiseloaded
- Maybe you do not know your products or services well to provide enough value to a customer to want to move forward in the sales process