If you’re left wondering month after month why you haven’t got enough prospects converting to customers, or why your customer numbers are rising but your profits aren’t, you’re probably not tracking your numbers effectively.
It’s not uncommon, and is often because business owners simply don’t know where to start to get the information they need. Following a step-by-step sales process and keeping a track of your pipeline can make a huge difference, however, and help you to plan for a profitable future.
It might not be sexy, but gathering stats will help you sell!
So, here’s my simple, step-by-step guide to tracking your sales numbers:
1. Understand your sales process
Every business might have a slightly different sales process, but it’s important to have one – and to understand what yours is! A simple example would be:
- Initial contact with prospect
- Follow up call to book appointment
- Send relevant information before meeting
- Meeting to discuss requirements
- Send proposal/quote
- Follow up
2. Set up a sales board
It may take some time initially, but setting up and maintaining a sales board will pay dividends in terms of streamlining and tracking your sales. It allows you to see in an instant where each of your prospects are in the sales pipeline and ensures you keep on top of follow ups. Check out this earlier blog about the sales board to find out more.
3. Track your numbers!
Once all this is in place, tracking your numbers becomes very easy. The information you want to record might include:
- Number of prospects
- Number of proposals sent
- Number of closes
- Value per close
- Length of time taken from initial contact to close
Only when you have all of this information in front of you can you work out where improvements are needed for you to grow your business.
You can work out how many closes you are getting in relation to prospects, how much your average close is worth and how long your sales process is taking.
- You have 15 prospects
- You close 5 deals
- Average of £10,000 per close
- Sales process takes one month
If this is a regular pattern, you can deduce that you are closing one in three deals and for every 15 prospects you bring in, you are closing deals worth £50,000 of business.
From here you can now start to plan. If this is the average activity in one month, you can project your annual figures.
If you want to see that sales figure grow, you have to do one of three things – bring in more prospects, get better at closing or work on getting higher value clients.
So, if your sales figures are running away with you, implement these simple steps to get back on track!
Doug D’Aubrey has helped hundreds of companies grow and become more profitable with his practical, straight-forward advice. To find out if his growth or mentoring programmes could help you, request a free business review here.