Numerous salespeople complain that they never know when it is OK to “shut it off” for the day. When is enough really enough when it comes to prospecting and cold calling?
Imagine how much easier your life could be if you were able to discover the specific and measurable routines you need to take on a day-by-day schedule in order to reach your yearly net income goal. Use the following template to generate your achievement formula. You will then have the ability to determine the quantity of cold calls to make and the quantity of appointments/demonstrations needed each month, even every day, to attain your goals, and even the time commitment it will take to do so.
Let the figures in your accomplishment formula identify the volume of activities you need to put in your day-by-day routine to assure selling achievements. It sure beats scratching your head at the end of every month, thinking about why you failed to meet your sales quota. Now, you will have a determined formula to follow so that you can obtain the outcomes you want.
* What number of calls do I need to make to produce one prospect?
* How many prospective customers does it take to produce one sale?
* How long will each prospecting or cold-calling effort take?
* The amount of time do I need to commit to brand-new business development every day?
* What amount of sales do I need each thirty day period to accomplish my year-end financial goals?
If you don’t know the answers to these important questions, that’s perfectly fine. Because by the conclusion of this article you will.
As you read through this formula, you may come across some questions that you do not know the answer to. This is completely common, especially if you are brand new to sales or have never been exposed to these questions. Understand that if you don’t hold the answer to some of these questions, it may require doing some conscious tracking of your cold-calling campaigns before you are able to precisely answer them.
Before you try to complete this formula, you have to have a specified prospecting exercise in mind. Since each prospecting undertaking is going to produce a different number of qualified prospects within a certain amount of time, you must consequently create a separate formula for each prospecting activity you take on.
For instance, if you make use of direct mail as a way to generate new prospects, then step 4 in your formulation might look like this:
“Marketing Efforts: I need to commit $______ per month to produce one new qualified potential client.”
The following formula is for your cold-calling efforts only. Create a standalone formula for all additional prospecting exercises.
Last but not least, please note that this formula doesn’t take into account residual income earned from each sale. To compensate for this, use the average lifetime value of one client (taking out any referral business they send you) as the factor for steps 1, 2, and 3 in the formula.
My Formula for Selling Accomplishment
1. Average sale in my business is $_____.
2. Percentage of commission/income I am paid per sale is _____%.
3. My average commission/ income per sale is $_____.
4. Prospecting Activity: Cold Calling
It takes _____ (number) cold calls to find one new qualified prospect.
5. I need to present to/meet with _____ (number) potential customers to close one sale. In other words, I typically close/earn the business of _____ out of _____ potential customers I am in front of. Therefore, my closing percentage is _____%. (Number of sales divided by number of prospective clients you presented to/met with.)
6. My annual income goal is $_____.
7. To attain my goal, I need to generate $_____ in average monthly income. (Yearly income goal step six divided by 12 months.)
8. I require _____ (number) monthly sales to produce $_____ step seven in average monthly income. (Average monthly income step seven divided by average commission/ income per sale step three.)
9. To produce _____ (number) sales monthly step eight, I must present to/meet with _____ (number) new qualified prospective customers per month. (Number of potential customers needed to close one sale step five multiplied by the number of desired sales per month step eight = number of presentations/meetings with qualified prospective clients per month.)
10. To produce _____ (number) new qualified prospective clients per month step nine, I must make _____ (number) cold calls per month. (Number of cold calls to find one new prospect step four multiplied by the number of new qualified potential clients needed per month to produce desired number of monthly sales step nine.)
11. I must make _____ (number) cold calls per week. (Number of calls needed to make per month step ten divided by 4.335 weeks.)
12. To make _____ (number) cold calls per week step eleven, I need to devote _____ (number) hours per week tp cold calling. (Number of cold calls per week step eleven multiplied by the average amount of time per call in minutes divided by 60 = the number of hours needed to devote to cold calling per week.)
Tip from the Sales Coach: Make sure that you account for any additional preparation time prior to each cold call.
13. I need to devote _____ (hours) per day to cold calling. (Number of hours per week devoted to cold calling step twelve divided by number of workdays.)
14. I need to make _____ (number) cold calls per day that will take up _____ (number) hours per day step thirteen. (Number of cold calls per week step eleven divided by number of workdays.)
There are a wide range of tools that maximize the performance of your cold calling efforts. A large number of high quantity cold callers use predictive dialers that execute the dialing and then shift live calls to you. Effeciency of a system like this can allow your numbers in this formula to reach a whole new level.