Sound Sales: In sales, you must have a daily compass
Over the last two months, I have discussed Goals and Road Map. What do you want to achieve and how do you plan to achieve it? An important component of your Road Map is your Compass – the tool or mechanism you are going to use on a daily basis to guide you to your destination. Without a daily compass, salespeople may struggle through their career without achieving the higher level of success they desire.
Building the Compass
After completing your life plan, let’s pretend you need to make $ 100,000 this year. Assuming you are in commission sales, you will have the control over your income and compensation to make this a reality.
Step 1: How many days do you plan to work this year? There are roughly 245 business days in the American work year. Perhaps after vacation and personal time, you estimate working 220 of those days.
Step 2: What’s your average commission per sale? Let’s pretend you sell software and an average sale represents $ 2,000 in commission. If you have residual or renewal income, which is commonplace in the insurance industry, you’ll need to take this into account. Without residual income, you need to make 50 sales per year at an average of $ 2,000 each in commission to produce $ 100,000 of annual income.
Step 3: Determine your closing rate. How many prospects do you need to get face-to-face with in order to make a sale? If your closing rate is 25%, you will need to get face-to-face with 200 new prospects this year.
Step 4: How many phone contacts do you need to make in order to set one face-to-face appointment? If you can set one appointment for every three telephone contacts, you need to make 600 phone contacts each year, or 2.7 per day (round up to 3 per day.)
Step 5: How many times do you have to dial the phone in order to make one contact? Again, let’s assume you need to dial three times in order to make one contact. The other two times you get voice mail or whatever. Therefore, you need to make 1,800 dials per year, or 8.2 dials per business day (round up to 9 per day.)
Formula: Review steps 1 – 5 so you understand the formula and the math.
Presuming your numbers and percentages are correct, your compass now indicates: if you make 9 dials per business day, you should reach your goal of $ 100,000 this year.
It’s that simple! It’s that basic and it amazes me how few sales professionals have a daily compass. A daily compass is knowing and doing the most basic daily sales functions, which will lead to revenue you need to produce or income you want to make on an annual basis. In this example, dialing the phone 9 times per day equals $ 100,000 in annual income. Again, if your calculations, projections and percentages are accurate, and they should be, then your outcome should also be correct. You should know yourself, your industry and your track record, and you should be able to come up with accurate numbers to drive your daily compass.
Keep a close eye on your performance during the first 90 days or so of this new habit. Be prepared to adjust your numbers and your activity, in the event that your initial assumptions and percentages were incorrect.
You now have a new standard of measurement for success. It’s your daily compass. Now, daily success in sales is not based on how many deals you opened, how many sales you made or how many new appointments you scheduled on a particular day, but rather, were you on compass today? Did you dial the phone 9 times today? If you did dial the phone 9 times, then you had a successful day. The law of averages over the course of a year will work out and you should reach your goal or desired income. I’m a firm believer that true success in sales is not based purely on results. True success is based on behavior and daily activity, which make results over the long haul possible.
Now that your Goals, your Road Map and your daily Compass have been defined, you know exactly what your behavior needs to be – each and every day. You will find that you’re not focused on any particular deal because you know things will work out. You will only be focused on your compass and the necessary amount of time you need to spend each day to follow your compass.
Keywords: Sales Daily Compass, Phone Contacts, Prospecting, Commission, Closing Rate, Sales Planning, Sales Tips, Sales Professional Development, Sales Leadership Development, Sales Management Tips, Sound Sales, Sales Consulting, Compass Group Solutions, Mark McGlinchey
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