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Measuring your ultimate sales performance

I worked at a place which tracked how many calls you make versus number of sales made. Another place measured how many sales you made versus 100 call-in contacts.

For me the best measure would be how many sales are made versus the number of presentations made (which would include repeat visits by outside field reps and other cases).

I've been speculating about the ultimate sales performance any rep could ever make. For me I've notice that the range between my good days performance and my bad days performance narrowed as my sales improved. So, for example, instead of selling 0 - 5 newspaper subscriptions a day which is a range of 5, I improved to the area of 6-8 a day which is a range of 2.

Using the presentations measure that I talked about above and allowing for all possible pertinent factors (e.g. weather, specials and the economy), I believe that the range can be brought to 0
beyond which it would be impossible for any sales rep to improve further.

What are your thoughts? - by Wonderboy
Using the presentations measure that I talked about above and allowing for all possible pertinent factors (e.g. weather, specials and the economy), I believe that the range can be brought to 0
beyond which it would be impossible for any sales rep to improve further.

What are your thoughts?
How would that be possible? Can you elaborate? - by AZBroker
How would that be possible? Can you elaborate?
Maybe an analogy would be helpful.

From baseball, let's take Babe Ruth for example. He had four years of 50+ homeruns. He also had an interim year where he had over 20+ homeruns where he had some type of illness. When you factor out that bad year which for him was unusual and allow for other factors (weather, pitchers, times up at bat, age, etc.), then it's possible that for him, 60 homeruns per say 500 times at bat (I don't know the actual number of times at bat) would be Babe Ruth's optimal performance meaning a zero range as far as homeruns go.

The zero range, while hypothetical, would represent the best anyone can do. If someone does reach that level (ruling out the other trivial possibility that no selling is done at all), that means that sales rep has reached his potential sales performance and no
one can exceed it (again allowing for all pertinent factors). Both the evidence and logic supports this conclusion. - by Wonderboy
I've tried lots of formulas to measure success and all but one has worked well for me. Everyone's got to find or make their own formula.

I set my goals on income and income is based on volume since I earn comissions and overrides as my biggest form of income - I also have a monthly retail sales goal.

Next comes daily/weekly contacts and I use the old line,line,line,line slash = 5 method. On my BigDesk paper I make these hash marks and keep track.

That's it. All the clever and mathematically precise calculations in my feeble attempt to arrive at some kind of absolute just took time away from my line,line,line,line slash = 5 slash marks.

BUT I'm not arrogant in believing my method is going to work for anyone else or that some better calculation might not serve one well.

If "brought to zero" means a sale per contact then that's a good one - who would disagree with that.

The best of the best to you.

MitchM - by MitchM
I've tried lots of formulas to measure success and all but one has worked well for me. Everyone's got to find or make their own formula.

I set my goals on income and income is based on volume since I earn comissions and overrides as my biggest form of income - I also have a monthly retail sales goal.

Next comes daily/weekly contacts and I use the old line,line,line,line slash = 5 method. On my BigDesk paper I make these hash marks and keep track.

That's it. All the clever and mathematically precise calculations in my feeble attempt to arrive at some kind of absolute just took time away from my line,line,line,line slash = 5 slash marks.

BUT I'm not arrogant in believing my method is going to work for anyone else or that some better calculation might not serve one well.

If "brought to zero" means a sale per contact then that's a good one - who would disagree with that.

The best of the best to you.

MitchM
A basic question newcomers to selling have is "How well am I doing?" as many places don't give a straightforward answer to that question.

I feel it's worthwhile to come up with a yardstick that would have the most widespread application while offering the bonus of letting you know when you have reach your ultimate performance.

Any further comments? - by Wonderboy
Keep track of contacts, appointments, and income. Match that to your income goals.

MitchM - by MitchM
If I still grasp statistics as well as I once did, by range you mean the difference in the max and minimum sales per day throughout a certain time period excluding the statistical outliers (extreme variations of 50 in a miracle day and 0 on a day that you have the flu). I think that this is a flawed measure of sales performance because it doesn't purely focus on sales performance. Instead, the range method that you are suggesting is dependent on a marketing variable; that variable being how many appointments you schedule with per day. I believe a more appropriate method to use is the widely used "sales batting average." Rather, the percentage of sales closed of the appointments kept.

With all that being said, I don't understand the nature of your business. What I just described I think fits more appropriately to my business: insurance. If I wanted to quantify the CONSISTENCY of BOTH my sales and marketing efforts, I would use the range method you suggested. If I wanted to quantify my sales performance, I'd use what I spoke on above. If I wanted to quantify my marketing efforts, I would use a ratio of time spent prospecting/appointment made or a ratio of contacts made to appointments scheduled. Contacts made/sales or time spent working/sales is a good measure of both marketing and sales skills. - by drobs
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