So I would like to give a little background into the type of Sales I do. Though there are many similarities between selling different products there are many differences as well. I work for an investment company that provides turn key residential property to foreign investors.
I have recently been promoted to running membership sales. To have access to are core business there is a deposit that is refunded if the investor buys property. It gives them access to our properties, but also an array of free professional consultation, accountants lawyers and investment advisors. Our leads are all "hot leads", individuals who have gone onto our website, are interested investing in the US property market and have left contact information.
With this promotion I am now in a position to affect policy for sales, and first thing I have done is run analytics on the entire sales floor. Unfortunately my predecessor was inefficient and focused on a hard close, and numbers on board which many will realize when you are not self generating your own leads, "dials and phone time" and number of closes do not paint a picture. It still amazes me that analytics were not ever run on the floor. I mean for example my predecessor reasoning would be "employee x recieved 100 leads in January and employee y recieved a same amount since employee x closed more in the month of January they are doing better should get more leads etc. This reasoning is not sound since half of employee x's closes were leads given before Jan 1 2013, and employee y's only a quarter of the closes were from leads given pre Jan 1. Than technically employee y performed significantly better that employee x.
I am 22 years old and kind of fell into sales by accident. With degrees in Biotechnology and Mathematics, no amount of sales knowledge and skill will change my prespective that numbers dont lie, and my advice to anyone in sales even not in a management position should always be calculating analytics to "know your business". How can you expect to improve if you dont know whats going on. If you self generate leads, if you dial 200 people a day and make 1000 dollars a week. Chances are if you make 400 dials a day you should double you income.
The data I have crunched so far is a break down of all membership closes for the company since April 2012. When the lead was first called and when it was closed. Calculated percent of leads closed on first call, within a week, between 1 and 2 weeks between 2 weeks and a month, between a month and 2 months and over a month. I believe this data will give me an idea of "how long a close should take" for example if 80% of closes occur between1 and 2 weeks after a lead is first called I would change sales technique on floor to "set up the close for the second week", and not bother trying to close hard one first call, or 2nd if it occurs in same week and set it up for the 2nd week.
Secondly I calculated closing ratios based on leads actually given as opposed to "closes for the month vs leads for the month". Meaning, if employee x has 10 closes and recieved 100 leads in the month, there closing ratio is not 10%. Its the amount of closes 10 minus the closes that were not in those 100 leads. So if 5 of the closes where not of leads given that month there closing ratio is 5%.
There is another variable to my sales floor we call "hotties", these are individuals who are "so interested" that they have called in to our office as opposed to entering there details online and asked to speak to someone. There closing ratio on these is around the 50% mark no matter who sales person is. Of all people who call in half of them will end up signing up. I had a large issue with my predecessor, because he didnt aknowledge at all that these should not count towards closing ratio or performance, since only certain salesman are "in the hottie pool" at any given time. If employee X closes 10 and 3 are hotties, and employee y closes 9 and is not in the hottie pool than employee y performed better. So I also calculated closing ratios minus hotties, to get good comparison of my sales people.
Lastly so far I calculated bad numbers total, and bad numbers per sales guy. These numbers are different since when I pass out leads I remove blantly bad numbers etc. As of now my CEO does not feel that bad numbers should not be weighted to closing ratio since all leads cost the company money (google ad words) weather its a good number or bad number. I tend to agree since statistically speaking since leads are distributed randomly any individual has same probability of recieving a bad number. I however think its important for the company to know what percentage of the leads generated are not useable.
So to summarize the analytics I have run is. *1 is only thing I could calculate of closes in 2012 since there was not data kept on amount of leads given out etc, but copies of lead sheets are kept and could see when first time spoken to and date they "became a member". 2. was only full accurately done for part Feburary and March because before my promotion no data was kept but we had an abudance of inquiries where "every sales person got 5 leads a day" so it was safe calculation to add up week days and calculate from there. Starting with my promotion now exactly how many leads is handed to each sales person is recorded, which always 1,2, and 3 to be calculated on weekly and monthly basis along with a 2013 total calculations to get exactly whats going on.
- Time to close a lead
- Closing ratio based on leads actually given (not hotties and backbook closes) though I have both ratios for each salesman since its still sucessful sale and would like to take into consideration closing ratio with it the true closing ratio is more of comparison of sales people)
- Bad numbers of total leads generated and bad numbers of leads handed out
I know its long post but I think for me to ask for any productive advice one would need a good level of background of my sales floor and how it works. So finally for my question is,
1. with this sales model is there any additional data anyone thinks would be useful and how would it be applied/translated, and
2. For those with significant sales managing expierence am I putting to much weight on statistics, its my belief that statistics dont lie and paint a very real picture of whats going on, but I am first to admit other than one year sales expierence and being very good and this specific type of sale I have no idea what I am actually doing. Simply basing this off my expierence this past year and what I think works and doesnt work. If these statistics do not paint the full picture than I need to know that I should not but all the weight behind these numbers.
My overall game plan with my sales floor when enough data is collected (might consider end of march since data for quarter year will be collected and calculated) to base lead distribution based on an Calculus application called an optimization curve. I calculated that based on closing ratio there is a perfect amount of leads each salesperson should recieve. If employee x has a higher closing ratio than employee y than employee x should get more leads. biggest thing I like about this idea is one of the biggest problems with my predecessor was his "what have you done for me lately mentality". I was top producer consistently for 6 months straight until Jan and Feburay, I had a bad 2 weeks (which happens to everyone at some point), and he decided to take me out of lead pool and hottie pool until I closed a deal. This alone easily lost me 1000s of dollars and I still managed to be 3rd highest producer for the month losing out to first by 2 deals. Which i think is very poor managing. With the optimization system no one week will make or break you, if your closing ratio becomes low and ur leads you gets drops significantly than you can still better your sales and get back in the game because while employee x is getting 5 leads a day and employee y getting one lead a day, employee x would have to conistently have 5x the closes and employee y to maintain the lead difference.
Another thing I like is I technically never have to fire anyone. They will starve to death and quit on their own, and there will never be an arguement over leads since I can show the numbers to anyone who is "unhappy" with the amount of leads they are getting. Hardest part is going to be new employees I will most likely implement an amount of time were no matter what they get a designated amount of leads they get until enough data been collected to throw them into the lead distribution.
Sorry for long post but really look forward to any advice anyone can give. I have been given a great oppertunity and want to do everything I can to do it to the best of my abilities because as they say
Sales is the lowest paid easy job and highest paid hard job