In our experience helping medium-sized companies grow, we have identified that one of the biggest areas of opportunity in sales planning is how to relate objectives to specific actions of prospecting , connection , exploration and advancement in the sales process .
At GrowX Agency, we help our clients in sales planning sessions where we help them understand how many prospects we need to attract to achieve a certain sales goal. How do we do this? The key is to understand the metrics of the sales process and the conversion rates of each of the stages .
If a company's goal is to achieve sales growth of $10 million, to do so, it must generate 10 clients with an average invoice of $1 million . The opportunity-to-client conversion rate is 50%, which means that the company must generate 20 sales opportunities and maintain or improve that conversion. In turn, if the conversion of qualified prospects to opportunities is 20%, it means that it must generate 100 qualified prospects to achieve those 10 clients. This means that the prospect-to-client conversion rate is 10%.
How are we going to attract 100 prospects? How many do we attract today? Is it feasible to capture the interest of those prospects to generate 20 sales opportunities? How are you going to achieve these objectives?
Two key aspects of this plan are: how we are going to generate more and better prospects , and how to optimize the sales process to achieve better conversions . And, to know that we are doing it correctly we cannot depend on intuitions or perceptions, the sales plan contains the key performance indicators.
Cardinal points, how to measure objectives?
How can we continue and/or improve the path we have drawn up? Through KPIs. Understanding the timeline of the objectives will help us to adequately measure that we are progressing towards achieving the commercial objectives.
KPIs in the sales plan allow us to measure, evaluate, adjust and regulate sales costa rica phone number data performance . Measuring the process allows us to see that the results will be met. How? To do this, we have established goals and the activities we will carry out to achieve them.
When everything is going well we continue along the same route, and when it is not, we can always adjust the sails and take another direction that will take us to the same destination, achieving the results .
The main indicator is the volume of revenue and the percentage that it represents with respect to the sales growth goal. This helps us to clearly understand where we are in relation to the objective. That is, if our objective is to increase sales to $10 million before July of this year and in March we identify that we have grown by $6 million, which represents 60%, it means that we are on the right track.
To understand this further, we evaluate the number of clients and the average billing . With this we can determine how many more clients we should look for and with what billing amount.
If based on last year's data, we determine that we must seek 10 new clients with an average billing of $1 million each to reach the growth goal and in March we see that the $6 million we have billed have been through two clients, this may mean that we have an area of opportunity in the generation of new clients , since according to the initial planning we must capture 10 new clients or, it may represent that we have been very effective in focusing on capturing new large accounts .
KPIs reflect the behavior of a company , allow us to analyze the evolution of sales and show the right path to achieve the objectives. Knowing the KPIs we can implement improvement actions that enable an increase in sales and, consequently, in the growth of the company.
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