Another set of numbers that garner the attention of management, both at the departmental and operational level, is individual sales metrics. How often should a prospect be contacted or “touched,” and how does that translate to number of calls needed per day or week?
THE VALUE OF SALES BENCHMARKS
Many sales counselors cringe at the mention of required calls per day or week. A sales counselor feels that required metrics are only a means of accountability for doing their sales work, and that it is. However, establishing solid benchmarks is also a means of reaching yearly and departmental goals. Similarly, to figuring out how many leads one needs in order to fill a certain number of residences, we can determine how many calls/touches are needed to convert a qualified lead to a sale.
Hopefully, the marketing and sales department has some established expectation of number of touches sales counselors should achieve during their work week; however, if you do not, the new practice should be presented as a strategy being implemented to meet sales goals. Share the numbers with your staff so that they can understand the reasoning behind the new requirement. If you already have established benchmarks, be sure to review that the current requirements are adequate to sell the number of residences desired. This is particularly important during times of expansion.
SUGGESTED SALES BENCHMARKS
The number of required contacts is dependent on: how many residences you must sell and time period for selling and filling residences. The competitiveness of the marketplace may create a necessity for higher numbers.
So how does one compute the necessary number of calls needed to fill vacancies? Let’ use an example to reveal the strategy.
Let’s say you need to sell 76 residences, our previous example. If you remember, we need 1520 leads to fill this number with a conversion rate of 5%. Current data indicates it requires about 15-20 phone calls to book one visit. Enquire Solutions has conducted research that indicates the average closing rate for a visit is 12% (http://news.enquiresolutions.com/senior-living-sales-benchmarking-community-measure). And the numbers say….We will need 760 visits to be able to convert 76 into sales. We need 1520 calls to book a visit.
From paying attention to the numbers, you can explain to your staff why sales counselors need to make calls to achieve goals. The higher the goal, the greater the efforts on calls and touches.
So numbers do count in places other than the lottery. Next week, we’ll talk about going beyond the numbers to create more efficiency in your touches.
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