Activity Ratios

 

Frequently the sales process is pictured as a funnel—wide at the top, narrower at the bottom.  The sales person starts with a number of prospects and ends with a smaller number of closed sales.  The shape of sales person’s opportunity funnel determines how many suspects become closed sales.   

 

The shape of the sales opportunity funnel is determined by the efficiency of the sales person. So with that said… How many prospects become closed sales? 

 

You can determine how efficiently you are moving opportunities through the sales process by completing a Sales Activity Ratio Analysis. The Sales Activity Ratio Analysis tool allows you to determine two things: 

 

     1.      How many of each step is required to create one output for the

               following step?

 

     2.      How effective you are at time management given your monthly

               time allotment? 

 

First, the Sales Activity Ratio Analysis allows you to determine (or estimate) how many of each step is required to create one output for the following step.  For example, let’s assume you, as a salesperson, need to have three initial meetings with Prospect to get one of them to allow him / her to meet with a Value Decision Maker (the “check writer”). The ratio for these steps would be 3:1.  After you have determined ratios for all of the steps, you can begin using the Sales Activity Ratio Tool to diagnose your performance.    

 

Secondly, the Sales Activity Ratio Analysis tool allows you to determine where your time is being spent and if you are making effective use of your time. As a user of the tool, you are able to input the “monthly available selling hours” and the amount of time you spend “per activity” (in minutes). Based upon the time per activity and the monthly activity target, the tool calculates your selling time target in hours (amount of time you need to spend on this activity to hit your target number of activities). Finally, based upon the entered information, the tool will tell you that if you spend the allotted amount of time (on each activity), whether or not you are within the confines of your total selling hours. If you are under, what are you doing with the remainder of your time, and if you are not within the available selling hours, how can you make better use of your time?