For a long time, we’ve been told that sales is a numbers game. Lately, many people have started to question this belief by arguing that quality is more important than the actual quantitative numbers in the sales equation.
Most sales people are familiar with the formula “number of leads” x “win rate” x “average deal size”. All sales people are able to insert their own numbers into that equation and get their total sales as a result. This also works for team leaders and sales directors: By dividing the results with the average sales cycle, you get sales velocity, i.e. how much sales you or your organization is delivering in a certain time period.
The most effective way to increase your total sales is to improve every factor in the sales equation equally.
There are many ways to boost your sales figures. We'll list 7 common ways that all work individually, however the most effective way to increase your total sales is to improve every factor in the sales equation equally. We'll get back to the calculations behind this statement further down in this post.
7 Ways to Improve Your Sales
- Hiring more sales people
This works as long as you’ve found a scalable sales model and your organization can predict sales generated per each new sales person.
- Increase outbound opportunities per sales rep
If sales teams can handle more opportunities without affecting the close rate, average deal size and sales cycle, this is a no-brainer.
- Improve the hit rate
Too many of us tend to forget the importance of providing our sales team with quality sales training. Especially if there are big differences in hit rate between your top performers and average ones, a dedicated project aiming to improve the hit rate is a good option.
- Attract more visitors to your site
If you have engaging content on the site and have found effective ways to convert visitors into sales opportunities, getting more people fitting your target group to visit your site will boost your sales very quickly.
- Improve visitors-to-lead conversion rate
Web site traffic is worthless unless you can convert that traffic into marketing and sales qualified leads. Make sure your content is so appealing,and your CTAs so smooth that visitors feel they have to drop their contact details for extra information.
- Improve the average deal size
Most organizations could just raise their prices. Many studies show that customers are willing to pay more than they do for a product or service when it brings them significant value.
- Shorten the sales cycle
If your sales reps are only able to work on a set number of opportunities at a time, then shortening the sales cycle with have a significant impact on the numbers.
While every factor in the sales equation is important, calculations that we present in our free eBook Mathematics for B2B Sales show that in order to double your total sales by improving only one of these factors, you have to triple that factor.
Instead, by focusing on every one of the factors in the equation, our calculations show that you can double your total sales – without changing your average sales cycle – by increasing every factor by less than 20%.
An improvement of less than 20% in each factor is enough to make a huge difference in the bottom line.
Having a systematic and data-driven sales methodology is one of the most sustainable competitive advantages in the digital era. By knowing your sales velocity numbers and factors, you can double down on the projects or initiatives that are working well, and adjust the ones that are falling behind.
B2B sales today, is an efficiency game rather than a just a numbers game. If you’re curious to know more about how you can improve your total sales significantly, download a free copy of our eBook Mathematics for B2B Sales.