Measure Sales Success the Right Way

Don’t over-stress about the validity of data; focus on the trend. While no one wants to rely on questionable traffic levels or misleading sales comparisons, too often the meaningful answer can be found in the trend rather than the absolute numbers. If traffic-to-sales ratio is declining, it’s more than likely that any underestimating of traffic was also present when ratios were higher.

Define statistics clearly. A lot of bad sales data is really not the result of outright misrepresentation but rather fuzzy definitions of what you think you are reviewing. How do you count “be-backs?” If the same customer comes back to your sales office three times in a week, is that counted as three “be-backs” or one? It often depends on who you ask. Are your competitor’s year-to-date sales based on gross or net of cancellations?

Begin with customer actions that occur before a prospect walks in the door. Measure the ratio of Internet leads, phone calls and on-site visits. A sales team that doesn’t count leads and phone calls most likely doesn’t understand the importance of these actions to gaining a sale.

Track sales-to-cancellation ratio (sub-set out mortgage related cancellations). A low ratio may indicate a sales team that is too timid to ask for the order. A high ratio is often indicative of pushy sales professionals who fail to provide full details of the transaction or are less than empathic to the underlying needs of the buyer.