Most of us didn’t get into a fashion oriented business because we were really good at math, right? And surprisingly, most of us can measure for carpet or window treatments pretty accurately, can’t we? We DO have math skills when it comes to visual applications. Couple that with how many actions we need to take to hit the sales goal and we’ll be rockin’!!! Ready?
There are 3 metrics and ways to increase our business:
- Increase opportunities / traffic
- Increase the number of closed opportunities against the number of presentations to close (close ratio / conversion rate)
- Increase the amount we sell to each client (average sale / ticket).
It’s pretty simple. You want to be sure that you are connecting with enough opportunities, closing enough of those opportunities, or closing at a particular average sale.
To calculate this for yourself, look at your last 3 months of performance and get a pattern of how many people you connected with to get an appointment, how many appointments you had to present to close, how many closes you had, and what your average sale was with those you closed. You also want to factor in your ‘fall off’ rate – the percentage of business that goes elsewhere, spends the home project money on kids braces, or just puts the brakes on their new master bedroom suite. All of those factors enter into the equation to determine how many actions needed to produce a particular result.
Then, pick ONE of the 3 metrics, just one, and the one that needs the most attention. No matter what your close ratio, if you aren’t connecting with enough people, you will not make goal. No matter what your average sale, if you aren’t closing enough of your presentations, you won’t make goal. Take an hour or so before the beginning of the next quarter, get out your calculator and performance numbers and get busy. Make this the last quarter that you ‘winged it’ or ‘did the best you could’ …and make the next quarter the one where you put external circumstances aside and strategically planned your success, based on what you did in the past and what you need in the present and the future. It’s a math problem that you can solve. If you need help, let me know.