Leon Griffith

We discussed the most overlooked Key Performance Indicator may be the 'magic number,' which identifies how many new appointments a sales person must make weekly in order to obtain their income purpose. In early 2000 I walked in to a VP of Sales goal using a sales organization composed of 12-0 repetitions disseminate more than 12 sales locations. They were running at 38% of income target for more than 2 years. I ran a KPI study and determined they were working 2 new sessions per week/rep, but their KPIs determined they needed to achieve 7. So I announced an exercise objective allow them to accomplish it effectively, (now branded the X2 Sales System) and threw quota out-the window for 90-days. But I replaced the monthly quota using the weekly magic number.

Income items sold increased by 520% 8 weeks later.

(See the Resource Box below to calculate your revenue groups Magic Number.)

A rep's magic number is dependent upon taking a look at several of her other KPIs. Say, for example, that your company sells copiers (for which the average sales cycle is 45 times) and that a rep's monthly sales revenue goal is $15,000. Her average revenue per sale, meanwhile, is $2,500; her present first-appointment-to-proposal ratio is 60 percent; and her closing ratio is 40-percent. What is her magic number? In other words, how many new appointments does she should set weekly so that you can accomplish her income revenue purpose of $15,000 per month?

The Magic Number System

Monthly sales income objective: $15,000

Divided by (/)

Average income per sale: $2,500

/

First-appointment-to-proposal ratio: 60-inch

(What percentage of the time do associates get commitment from potential clients to 'take the next step' in the sales process following the first appointment?)

/

Ending ratio: 40%

(Proposal to close--measures proposals presented compared to. new business achieved.)

/

Months in-the month: 4

=

Magic number: (about) 6 new appointments each week

Once you have discovered the magic number, the next phase is to determine how many new appointments a repetition happens to be building weekly. If she's falling short of her six-appointments-per-week purpose, your work as a sales trainer is to find ways--through focused KPI training--to help her bridge that gap and achieve her 'magic number.'

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