Sales is All about Managing the Numbers
This article explains why sales is mostly about managing your numbers and time relentlessly. Once you get the numbers and put in enough time for all your prospects, the sales process becomes easier.
The process of sales is to start with the universe of ‘suspects’ who could possibly buy my product (here I can very creative in creating this universe, thinking laterally helps), then based on some criteria narrow it down to ‘prospects’ – these are persons with whom I will have to seek appointments (called approach), then I will spend some time (2-3 times) meeting these people, then get down to ‘negotiation’ then ‘close’ the deal and then get a cheque (order).
The conversion ratio for each stage is different for different industries. Say, the conversion ratio is 2:1 at each stage (S.P.A.N.C.O), this means for one order, I need two closes, 4 negotiations, 8 approaches, 16 prospects and 32 suspects.
As a poor sales man, I will create 32 suspects and then run though the sales cycle to get one order. Suppose this takes 14 days. If I, then, start the new cycle, I will get an order after 14 days. That means, in a 8 week program, like SIP, I will get 4 orders.
As a good salesman, I will
This means every day I will have to spend time creating a new set of suspects and following up with the funnel of the previous days.
My sales is limited by
To be a good sales person, I need to start thinking, check out the best sales person in my company, talk to him, accompany him …take short-cuts to learn the best practices.
BUT I MUST MANAGE MY NUMBERS AND MY TIME RELENTLESSLY.
If I am waiting in the reception, I should pick up my mobile and start finding out suspects and their details, start talking to prospects to get an appointment….
Article Tags: Conversion Ratio
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ABOUT THE AUTHOR
Prof. Chandra Kant is a Professor at Indus Business Academy, one of the top MBA colleges in Bangalore and has over 25 years experience in Strategic IT implementation for the Banking and Financial Services Sector.