There are good, better and best sales. You may have thought all sales are equal.They’re not if you are trying to build a successful business that is sustainable, profitable and transferable.
Focus on Sales Value
Sales people (even if it’s the owner) need to concentrate on finding and getting sales that add the most value to the business. This requires a sales process that doesn’t just look at the dollars coming in from this sale. It also can’t include only the costs — money going out, time to get and manage the sale, profit level, and any “hassle” factors.
4 Ways to Measure Sales Value
The value of each sale must also be measured by:
- Its ability to add to the reputation of the business and the product or service
- How it affects company image,
- Its ability to attract customers of the same or higher value to the business,
- How well it supports brand and company positioning.
Sales commission, bonus, and career advancement should be based on the salesperson’s ability to bring in good sales and to prevent spending time and effort on bad sales.
Use Sales Value to Prioritize
I have seen it written that 50% of all sales leads are not followed up. That sounds bad. What I don’t know, because they don’t say, is how many weren’t followed up on purpose. Maybe they were right!
Choose sales opportunities at your own risk. Choose wisely and succeed. Choose poorly and there are long term consequences.
Use Sales Value to Allocate Resources
Don’t go after every sale equally. Evaluate and prioritize those new leads, upselling opportunities, or repeat sales in terms of those with the highest value.
Also, make sure your sales process gives you and your salespeople a way to quickly identify bad sales opportunities that should not be pursued or only under restricted circumstances.
The less the sales value, the more likely it’s a bad deal or at least should not be given the same time, effort and resources.
In the end, it’s the quality of each sale, not the quantity of sales that matter.
Here’s to your success!