Tools for Selling Success, Measuring Your Ratios
Done properly, measuring performance ratios provides an accurate snapshot of the actual progress that is being made by a sales team or an individual salesperson. Most sales companies understand this and set up systems to maintain statistics on a variety of activities such as sales opportunities, presentations, demonstrations, closes and deliveries. However, the manner in which this statistical information is used in some organizations can be a problem.
The information gained through tracking is useful only if managers use it to provide constructive help to the team or individuals. If, instead, it is used as an intimidation tool, it will be a destructive influence on the sales floor which is the reason why so many salespeople fear and avoid it.
In organizations where stats are used correctly by sales managers, some salespeople still don't cooperate. Could it be a case as suggested by Jack Nicholson in the movie "A Few Good Men", "You can't handle the truth". Performance ratios, tracked accurately, will provide salespeople with valuable information in order to understand just where they are with respect to their goals. They point out their weaknesses and their strengths. They illustrate where course corrections are needed and what is working well.
If your organization doesn't actively track your ratios, take it upon yourself to do so for yourself. Do it honestly. Analyze carefully and don't beat yourself up. Simply learn and make the appropriate adjustments if any are warranted. Performance "tracking ratios" is a vital tool of the masters.
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