Clients often get tired of hearing a mantra “If you can’t measure it, don’t do it.” Or “You only do that which you can measure.” It is not always easy, sometimes systems need to be changed, employees need to be trained and customers may need an explanation of why you are requesting certain data from them. Think back to a time when someone asked you your zip code before ringing up the sale on the cash register, they were measuring something.
Understanding the correlation between what you do (marketing, advertising, social networking, volunteering, etc.) and the results helps business owners make wise future decisions. Can you define where every customer came from? Do you know what your prospective customer to client conversion rate is? Do you know your rate of customers entering your facility to sales? What is the average sale? Have the measurements increased or decreased? Do your employees know why the numbers are so important?
Example – While working with a client recently, who measure how customers came to chose his service, the numbers told us that the vast majority of the customer base were referrals and repeat business. He is spending thousands a month in the local yellow pages where he received one customer in two months, a negative ROI. Two months does not a year make, but by collecting the data for a year or two he will be able judge where is effort and money should be placed.
I was once asked to make 10 contacts and a minimum of 10 presentations per week. I thought that I was being asked to produce numbers, and only numbers. Little did I realize that with the increase in contacts, the presentation numbers were relatively easy. A side benefit of giving the presentation so many times was that the delivery of the presentation got better and overcoming objections became easier. Success followed.
There are a few interesting stats:
48% of sales people never follow up with a prospect
25% of sales people make a second contact and stop
12% of sales people make a third contact and stop
Only 10% of sales people make more than 3 contacts
2% of sales are made on the first contact
3% of sales are made on the second contact
5% of sales are made on the third contact
10% of sales are made on the fourth contact
80% of sales are made on the fifth to twelfth contact
How is this known – It is measured!
David G Thompson, Coach
801-938-6965