Many areas of our lives are driven by numbers: the lottery, our 401K, our taxes, and our salaries and salary increases. A numbers-driven mentality is particularly important in the realm of sales. Numbers measure our successes as we determine our level of occupancy or conversion rates. ROI numbers are important in making precise budgetary decisions: what is working and what is not. Numbers are often a key factor in accountability within a sales department.
During the month of June, we are exploring numbers or metrics….and what goes beyond the typical metrics measured within a sales department. But first, let’s explore why numbers are particularly important in the field of sales.
MEETING FINANCIAL OBLIGATIONS AND COVENANTS
When an organization is attempting to finance through municipal bonds, the numbers are extremely relevant. In addition to examining the debt coverage ratio and number of days of cash on hand, the financial agencies are interested in sales numbers. Attention is paid to the percentage of occupied homes in an existing campus; therefore, sales counselors must remain diligent in selling current residences while promoting an expansion or a new campus. Obviously, the financial experts are also interested in the number of reservations of new accommodations. For greenfields, most financial institutions require 70% of the total proposed residences to be reserved before financing. At times, if a community is existing and maintains a healthy rate of occupancy in the existing homes, 65% is acceptable. Many sales professionals ignore the pace of sales, but that is an important number as well.
Numbers are also important for strategic market planning. Accurate records and metrics reveal strategies that have been very successful in leading prospects to move to your community. Numbers can also reveal which sales people are strong in particular areas: ex.Susan is effective in representing assisted living; whereas, Jack excels in selling independent living. Good numbers will direct you in repeating strategies that work and eliminating or refining those that yield unsatisfactory results.
Along similar lines, good numbers will assist you in budgeting. When you see what works and what does not, you should also measure the ROI, return on investment. If a certain strategy yielded X conversions, how many times should you utilize that strategy to meet your goal and how much will that cost? We will delve further in using numbers to determine leads, calls, tours, etc. in a following blog.
And within the area of sales, numbers are unavoidable for accountability. People within the sales team should be analyzed based on their successes and their attempts. It continues to be my contention that successes have a direct correlation to attempts. If a sales counselor remains in contact with their leads in meaningful engagements, they are more apt to produce good sales numbers.
Numbers are important. Is there a beginning place? Yes, let’s start with predictions. How do you know how many leads you need to fill your vacancies? The June 8 blog will discuss those numbers.
Like what you are reading here?
You can subscribe to our blog through our RSS feed which you can set to automatically download each new blog article to your inbox!
RSS Feed for RD Blog -
If you would like to add the blog to your Outlook RSS Channels directly use the following link: https://www.retirementdynamics.com/RSSRetrieve.aspx?ID=28586&Type=RSS20
If you have trouble displaying the RSS feed using Chrome, please install the Chrome RSS Feed Extension that can be found here.
Subscribe to Weekly Email with Latest Blog
About the Authors
Our blog is written by our Retirement Dynamics team members.