Determine the Right Amount of Activity for You

I often show salespeople and their managers how to determine the "right" amount of daily prospecting activity. For most, it's a real eye-opener! The average sales rep does as much prospecting as they have time for or as much as their manager told them they should do. Both of those are good ideas IF they get you to your goal. For most of us, they don't. That's what the average rep does and that's one of the many things that make them average. Want to be above average and earn an above-average income? (Or, at least, know what it will take to do that?) Then it makes sense to figure out the amount of activity you personally need to do each day, based on your own metrics, so that you can actually achieve and exceed your goal, rather than hope that you make it. Hope, as has been so aptly said in the past, is not a great strategy.

In order to determine the correct amount of activity the first thing you'll need to do is to track your numbers over time. I recommend a minimum of 30 days, and it will probably be 60 days before you can get metrics you can rely on but it's well worth the minimal investment in time and effort it will take to track your activity. You'll need to know the:

1) Number of distinct Dials you make (Calling the same person 15 times does not count as 15 dials)

2) Number of DMCs you make (Decision Maker Contacts - each time you speak with a decision-maker. Leaving a message and speaking with an assistant do not count as a DMC)

3) Number of Appointments you set

4) Number of Sales Visits you go on (This can be different from the # of appointments you set - sometimes people aren't there for the appt. or can't see you when you get there)

5) Number of Sales you close

6) Average Dollar volume per sale (Total $ volume of all sales divided by total # of sales)

You can only discover the above numbers for yourself by tracking them over time but you can easily set up a manual system that allows you to keep track on a daily basis. At the end of each prospecting period simply transfer your metrics to an Excel spreadsheet. By putting in a formula at the bottom of each column you'll have a running total for each of the above (Dials, DMCs, Appointments, Sales Visits, Sales) and over time your real metrics or ratios will become evident.

Once you've got your baseline numbers it's fairly easy to figure out the "right" amount of activity for you.

Here's an example:

Goal - Earn $100,000.00 in commission

Average dollar volume per sale = $800

$100,000 divided by $800 = 125

You need 125 sales for the year to reach your goal of earning $100,000 in commission. 50 week year (2 weeks off for vacation) = you need to close 2.5 sales per week.

Assume a closing ratio of 1:7* (you close 1 sale for every 7 first appointments)

*Of course you'll want to use your own numbers and any change in any of the numbers from this example changes the results. Get better at closing? You'll need fewer appointments to make the same money. Raise the average dollar volume per sale? You'll need to close fewer deals. Or you can continue on with your current activity levels and make more money to blow away your quota and reach your real goals!

2.5 (sales per week) x 7 (number of first appointments needed to close one sale based on your 1:7 closing ratio) = 17.5 first appointments needed each week

Assume a DMC to Appointment ratio of 3:1 (every 3 conversations with decision makers results in 1 appointment)

17.5 (# of first appts. needed per week) x 3 (number of decision makers needed to speak with to set 1 appt) - 52.5 conversations with decision makers over the phone to set 17.5 appointments

Assume a Dials to DMC ratio of 4:1 (Every 4 dials results in 1 conversation with a decision maker)

52.5 (# of conversations needed each week with decision makers over the phone to set appointments) x 4 (# of dials needed to have 1 conversation with a decision maker to set an appt.) = 210 dials

210 (# of dials per week) divided by 5 (# of days in a week) = 42

42 dials per day gets you 52.5 conversations with decision makers which results in 17.5 appointments per week which results in 2.5 sales per week which results in $2000 in commission per week which results in $100,000 in commission for the year.

Once you figure out that last number (42) life becomes simple...simply make certain, that no matter what else happens, each day you'll dial the phone 42 times to people who might set appointments with you.

You'll need to track your activity levels over time in order for you to figure this out for yourself but once you do, you're golden!! Sales is tough enough...make your life easier by figuring out exactly what you need to reach your financial goals...then do it.

As always, please call or write if I can help you. It's always my pleasure.

Make It Happen!

Jeff