Are you a Business Owner struggling to acquire new customers every day? We have already discussed about How to double your sales by Kewal Kishan – Technology Coach in one of our previous blogs. Here we are, with one more amazing strategy to grow your sales.
95% of the business owners don’t track their sales metrics as a result of which it is almost impossible for them to predict their weekly or monthly sales leaving them anxious. "As rightly said if you can measure it, you can control it”. Analyzing sales metrics is crucial to improve your sales performance.
If you want to take your business to the next level by correctly predicting your sales, making your sales team productive, grow your revenue, and beat out the competition, then you must start tracking these metrics in your business -
Sales is the Oxygen of the company, which makes it crucial to track it on a monthly basis or even daily. Yes, if you analyse the sales on a daily basis you certainly set a bar for yourself and you make a conscious effort to meet it or even surpass it. It acts as a motivational factor if the sales fall below the set limit, you know you’re supposed to work hard in order to achieve it.
Monthly sales can also help you to predict the annual sales and you can plan your budgets accordingly. And finally, it enhances the comparison of the sales of different months and helps you to find out the reasons, in case of any fluctuation.
You must track the performance of each and every employee to ensure that they are regularly upgrading and performing better than yesterday. You can check how many conversions he/she is making or listen to their salescall to look for the areas of improvement. A business owner should not only focus on hiring new employees but even training them. In case the performance of any employee falls, you must immediately address it and train them to perform better.
According to Pareto Principle, 20% of products/services generate 80% of revenue. All you need to do is identify your top selling products/services and focus on them. Certain goods are required as a magnet to attract the customer to the shop. Try to cut out the other non-selling products/services that are generating very less or no revenue. Limiting your attention to lesser products or services will help you to scale the business in a better way.
You need to define your monthly, quarterly, and even annual sales goals. These goals can’t be based on sales value but need to be based on number of orders. That’s why this metric ie. Average order size is very important to analyse.
For example, if you are into B2B business, your average order size is ₹25000 and annual sales target is 3 crores. In order to achieve that you need to do business of 1 crore in 4 months. That means you must sell 400 products or services in these 4 months to achieve the target of 1 crore. Per month it will come out to be 100 orders to achieve 3 crore per year.
Then, if you are working 25 days/month, then it will be 4 orders per day. If you are able to get 4 orders per day consistently you are going to hit the annual sales target of 3 crores.
There is a possibility that your order size varies, you might have few orders of ₹15000 and few of ₹50000. In such a case what you’re supposed to do is divide the total sales by the total number of orders, you will get an average and on the basis of that you can easily set your sales target.
We all have clients/customers who take things on credit or don’t make the full payment immediately after taking the product/service. In such cases, It’s very important for us to analyse the accounts receivable ie. the amount that is pending from our customers.
We must have proper systems for payment collection and follow ups to ensure regular cash flow in the company.
Attend my live masterclass if you want to understand how you can easily build systems for your business using Google Workspace (formerly GSuite).
Sales is directly proportional to the calls and meetings done by the sales team. So, it is a must to track the total number of leads with your sales team and Its status . Get a CRM system, where your sales team can update the status of every lead and the last conversation they had with the prospect, so you can keep a track of your sales pitching.
A closing/conversion ratio for sales is the number of deals closed compared to the number of enquiries. You must track the closing ratio for every salesperson. If the ratio is high for any one person, that means he/she really understands your products and customer’s requirements. You can ask him to train other salespeople as well.
This metric will also help you to plan your marketing activities, such as how many leads you need to generate for your sales team to achieve your sales targets.
For more detail. you can follow the video: 7 Sales Metrics you must Track to Grow your Sales by Kewal Kishan – Technology coach.
These metrics will help you to understand how sales really work and if you are ignoring these business metrics your business will be directionless and it will be very difficult for you to scale it.
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