Saturday 1 January 2011

Bob Etherington- Things that don’t get measured, don’t get done!

Things that don’t get measured, don’t get done!

ALL the sales books and gurus tell you that, to succeed, you must constantly measure how your money and time are being spent. But what should you measure and why? Here are some useful metrics which show what’s making (or breaking) you right now:


Your Money!


Percentage of Budget / Quota / Goal Reached
Use this to determine if your sellers are behind or ahead of financial plan. Identify where focus should be applied to achieve your targeted objectives.

Sales to New vs. Existing Customers
As it is 90% easier to sell more to an existing happy customer, this vital measure shows where salespeople are spending their time, whether existing accounts are being developed, or how much time is spent prospecting for new customers.

Salesperson Rankings in Company
Rankings help you and your sales force see who is top according to what is being tracked. Rankings should be published and will stimulate friendly team competition.

Sales by Market Sector
Shows you which sectors are generating the majority of sales or if your sellers need more training in a particular segment.


Sales by Product
Shows the performance of each product and identifies opportunities for improvement / exploration. Further filtering will help pinpoint where demand exists, where effort is being applied, or highlight the effectiveness of an area or a salesperson.

Sales by Map
Shows sales distribution by geography. Analysis may indicate there is room for additional salespeople or suggest opportunities for territory redesign.

Forecast vs. Actual
Most useful for more drawn-out complex sales. If the seller’s forecasts are generally accurate, the he/she clearly knows what is going on in the market and has knowledge of buying-cycle decisions affecting his accounts.

Expenses - Actual vs. Budget
Broken down to individual level, these metrics help control costs when necessary and illustrate how well the each seller manages their budget.

Average Revenue per Client
An ever changing overview of sales effectiveness. Generally, you will find that growth occurs when there is an increase in average revenue per client and an increase in the number of new customers retained.

Your Time!

Number of New Accounts
Shows if salespeople are prospecting for new business.

Number of Calls by Sector/Account size
Shows if they are calling on prospects in targeted market sectors and size of accounts.


Number of Proposals Submitted vs Closing Ratio
This ratio shows what progress is being made in developing business and how effectively sales techniques are being applied.

Number of Wins against Competitors
Shows how effective they are in differentiating their solutions to their customers.

Your Customers!

Customer Retention Ratio
A key indicator of customer satisfaction. Generally if you can cut your current rate of customer attrition by just 10% you will see profitability increase between 25% and 90%

Buying Points Within a Complex Account
Shows you the number of buying points which the salesperson is seeing within each account, and the depth of account penetration that is being achieved.




Bob Etherington is the Author of "Cold Calling For Chickens"

3 comments:

  1. Cold calling is about asking any prospect right questions in order to extract their problem then offer a solution/s.
    Getting emotionally involved when faced with negative responses can only distract you from your goal.

    ReplyDelete
  2. Cold calling is about asking any prospect right questions in order to extract their problem then offer a solution/s.
    Getting emotionally involved when faced with negative responses can only distract you from your goal.

    ReplyDelete
  3. For me this speech was very reassuring. It clearly highlighted the only relevant factors that should be considered when selling a product/service to a customer. Keeping what Bob Etherington said in mind will ultimately motivate you to get out there and be fearless in your persuit of a sale. I feel this is a clear and concise insight into the fundamentals of selling.

    ReplyDelete