To Hit Your Sales Goals, You Need To Do The Math
If you have sales goals for the month, the quarter or the year, you must have adequate leads coming in so you have enough deals to close to reach your targets. How do you know how many deals and leads you need?
You have to do some math, and you will need to know these data inputs:
- Your Sales Goal
- Average Transaction Size
- Close Rate
- Meeting Conversion Rate to Deals
- Outreach Conversion Rate to Meeting
These are the steps to follow to hit your goal:
- Set your goal
Example: $1,000,000 net new business in next 12 months - Know your average transaction size or account size
Example: $100,000 - Determine the # of transactions or accounts needed
Example: 1,000,000 in sales/100,000 average account size = 10 new accounts - Know your close rate for qualified deals
Example: 25% - Determine the # of deals needed in pipeline to hit your goal
10/.25 = 40 deals required in pipeline to hit your sales goal
How do you get deals into your pipeline?
Meetings!
How many meetings do you need? Let's do some quick meeting math:
Determine your meeting conversion to deal rate (i.e. the % of meetings that turn into deals)
Example: 25%
Determine the # of meetings needed in the pipeline to reach the required # of deals
40/.25% = 160
You need 160 meetings to get 40 deals to close 10 new accounts
How do you get meetings?
Inbound + Outbound = All Bound Lead Generation.
If your inbound is providing 40 meetings, outbound will need to provide 120 meetings to reach your goal.
Start the math again:
Call/email conversion rate of ideal client to a meeting (i.e. % of emails or calls that lead to a booked meeting)
Example: 5%
120/.05% = 2400 calls/emails
You need to conduct 2400 emails/calls to get 120+40=160 meetings to create 40 deals to get 10 net new accounts.
Start reaching out!
If you need help with inbound marketing, tracking your leads and deals through a CRM or sale coaching, we can help.
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