Sales ratios are an attempt to guess what happens next in a sales cycle. It is a guideline on how to evaluate performance when selling to businesses.
The sales ratio is useful because it answers the question..
Am I putting in enough effort?
At what point in your sales process do I need to adjust on?
Evaluating sales ratio activity will help you not be surprised with the outcome of your work. Ratios follow the law of sowing and reaping. The more you reap, the more you www.atoledo.com sow. In the process of sowing and reaping not all seeds mature and turn into fruit bearing trees or crops. Some will be lost in the process.
The key is to know the what is inevitable in advance and compensate where needed.
Here’s an example:
Each person"s starting ratio is 1:3
To get 1 sale with payment you will need to submit to a prospect 3 proposals with quotation.
To get 3 proposals with quotation, you will need, 9 meetings with a new prospect.
To achieve 9 meetings with a new prospect, you will need to schedule 27 different appointments.
To have 27 appointments set you will need to call and/or send emails out to 81 different prospects
Most of your effort will not best fruit but putting in the numbers and being excellent will improve your abilities and will improve your future ratios.
Next week we will talk about how to make large sales targets manageable.