17 May 2012

How to gauge a good salesperson

Whether you are a BDM, a broker or a loan writer, you are effectively a salesperson, and selling is a numbers game that can be quantified to show exactly what it takes to achieve ultimate and predictable sales success.

Every salesperson should have a mathematical equation for their success. Some sales people have an 8-3-2 ratio, meaning they need eight prospects (leads, applications, etc.) with three of them granting face-to-face meetings (getting them pre-qualified, or approved) in which two ultimately become new sales. Keep in mind that every person has a different conversion ratio. Some may be 10-3-1 while others are 5-4-3.

The only way to discover your conversion ratio is by tracking your prospects, presentations, and sales. This procedure is then tracked over a period of time that reveals the actual numbers. You should be able to identify how many prospects, qualified leads, and appointments are needed to reach any targeted sales goal of your business.

The beauty of this system is that the numbers can be tracked to generate and reach even the most aggressive sales goals. As a professional, you then know exactly how many prospects you will need in order to reach five new sales. Better yet, if you wanted to reach five new sales per week or five new sales per day, you can simply adjust the ratio. This method of identifying prospects, and ultimately sales, can be duplicated to fit any market or business. This provides the ability to predict, plan, and check your activity levels and development of your goals and objectives.

Tracking and knowing your numbers will:

  • Identify your strengths
  • Identify your weaknesses
  • Identify what is needed to reach goals
  • Project what you can expect
  • Hold you accountable

Most salespeople think this is common sense, yet many aren't able to answer simple questions regarding their numbers; for instance, what if you were asked right now "What is your conversion ratio?" Do you convert 40 percent of everyone you present to? Or maybe you're converting over 80 percent - how many prospects do you need to see in order to double your monthly production?

If you don't know off the top of your head, don't despair, you're not alone. Most sales people in our industry don't know the answers to those questions, simply because they are not tracking their numbers. If you don't know those numbers, how would you know which areas need improvement?

Sales Tracking

The only way any sales campaign (e.g. magazine and television advertising) can be judged a success or failure is by tracking all of the results involved, not just the actual sales.

It is therefore important to track the correct production period. Businesses should have 12 monthly campaigns per year and a 20-day selling period per month (five-day work week x four weeks per month), which means that each campaign is based on a 20-day selling period to show monthly projections. This way you can see if you are on track to reach the target numbers, and how many more prospects you would need to see in order to reach your goals.

For example, in a campaign you could track the following data:

Monthly Sales Figures - May 2012
Total Settlements (Month) $6,161,321
Daily Settlement Average $308,066
Total Settlements (Month) - # 23
Daily Settlements Average - # 1.2
Total New Leads (Month) - # 92
New Lead Daily Average - # 4.6

A salesperson's daily production sheet should evolve over years; tracking the relevant data fields and adding the numbers you need and subtracting the numbers you don't need. In other words, if you decide you needed to know how many leads or prospects you received on a daily basis, you would add that. If you needed to know how many you received on a weekly and monthly basis, you would add that as well.

Best regards

Iain Pepper

Your "lender of first choice"


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Iain Pepper
Head of Lending

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e  ipepper@latrobefinancial.com.au

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