The Numbers
An article by Jim Connolly
As you know, numbers play a BIG part in any business. Most of us are very aware of some of the numbers, such as those that show us our turnover and profits or stock levels. However, many of us are less aware of the incredible power of what sales professionals refer to as ‘the numbers’. Let me explain.
You can very easily identify exactly what level of activity you need to engage in for complete commercial success, based on a very simple set of numbers. Here’s an example based on a businessperson I know:
Mary needs 2 new clients each month to achieve her business goals.
She needs to meet with 3 prospective clients on average in order to generate 1 new client. (Her conversion ratio is 3 meetings to one converted client).
Therefore, Mary needs 6 meetings a month to generate the 2 new clients required for her to achieve her targets.
So, to achieve all her commercial targets, Mary simply needs to attend 1 networking event every 2 weeks, as each event will usually result in her generating 3 or more meetings.
Many businesspeople make the mistake of ignoring 'the numbers'. They focus their sales and marketing efforts at intangible, almost worthless targets like ’more business’, never focusing on ‘the numbers’ behind achieving a set target. Without ‘the numbers’ it is also impossible to accurately measure your progress and check if you are on track or not.
What are YOUR numbers? Here are some questions you can use right now, to define exactly what YOUR numbers are:
How many new clients or sales do you need to make over the next 12 months to smash your sales target for the year?
What’s your conversion rate? How many people do you need to meet in order to generate a sale or a new client (whichever your targets are based on)?
How many letters, emails, telephone calls, networking events and how much advertising do you need to invest in to generate THAT number of meetings each year?
Now, just divide the above number by 12 to uncover how many of those activities you need to invest in each month in order to smash your sales targets. For a weekly or daily figure, divide your annual figure by 52 or 365.
The number you end up with should be the starting point of your sales and marketing efforts. What you now have is a clear idea of what you need to be doing in order to achieve the targets you have set for yourself. If you work in sales for an employer, make sure YOUR targets are higher than your managers or employers.
Figure out how many sales you need to make in order to live where you want to live and drive what you want to drive. Linking those tangible ‘goals’ to these simple monthly tasks is far more motivating than simply hitting your manager’s targets or paying your bills!
You cannot hit a target you cannot see
If you have struggled to achieve the level of sales success you wanted previously, don’t be too hard on yourself! You now know what your numbers are and exactly where to focus your efforts to become a super-sales-achiever! That’s the power of ‘the numbers!’
To your success,
Jim Connolly
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