Understanding your vital stats and related per centage calculations can greatly assist you with improving your sales. Let’s look at a few:
1) Closing Ratio. Your closing ratio is your total number of sales or “closed deals” divided by your total number of demos or “product presentations” during a given time. Say, for example, you give 5 product presentations in a week and close two of these presentations. Your closing ratio or closing rate would be 2 divided by 5 or 40%.
Is this good or bad? It depends on several things. First, how do you compare with others in your office or industry? If the normal closing rate is 20% and you’re closing 40%, then you’re doing relatively better than the others in your industry.
What’s your goal closing rate? If you have a goal of 70% and are only closing 40%, then you have work to do.
What closing rate do you need to make your team goal in sales?
2) Appointments to Calls Ratio. How many qualified appointments is your team setting for a given number of calls? Say you set 4 appointments for every 50 calls made. Your Appointments to Calls would be 4 divided by 50 or 8%.
3) Dollar Per Sale (DPS) You can derive your DPS by taking your total dollars in sales during a given time and divide this number by the total number of “closed” sales. Say you accomplish $50,000 in sales during the week and had 5 sales (closed sales.) Your DPS would be
$10,000 per sale.
The really awesome thing about tracking and understanding your sales vital stats is that you can get a “snap shot” of how you’re team is performing in each of these extremely important areas. Simply put, there are only a few ways to increase your sales. You can 1) increase your presentations, 2) increase your closing ratio, and 3) increase your Dollar Per Sale.