number of possibilities;
average transaction cost;
Win/conversion ratio value;
sales cycle length.
To learn how to use each of these sales saudi arabia mobile number velocity variables to guide your organization's planning and goal setting, let's take a closer look at them:
Number of possibilities
There are always a certain number of opportunities in your organization's pipeline. You need to make sure that they are real. Profits can suffer if the sales funnel is clogged with invalid leads, and only a few have a chance to close.
Cost (average size) of a transaction
Each party must spend one of the most important resources on a transaction – time. You need to make sure that this indicator is used with maximum benefit for you and for the potential client. This is achieved by providing such offers and additions that will make their life easier, and will increase your average transaction cost and sales speed.
Sales velocity variables
Win/Conversion Rate
It shows the average percentage of wins, which should be directly proportional to the number of leads you generate. And correct and high-quality. To determine the percentage of wins, you need to divide the number of sales won by the total number of opportunities.
Sales cycle length (measured in months)
Cycle length is about making your sales process more efficient. This involves revising your sales plan and increasing your sales force from time to time. These strategies help shorten your average sales cycle and close more quality deals faster.
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Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
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How to find out the 5 key marketing metrics in your company?
Step-by-step calculation template with fields where you can insert your data
How to make a KPI for a sales manager based on his work results?
Current template for calculating KPI for sales manager
9 Examples of Universal Selling Commercial Proposals
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Cold Lead Processing Script Template
A checklist of ready-made questions for engaging cold clients
7 Profitable Marketing Strategies Examples
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Example of calculating sales speed
It never happens on the market that all goods are sold at the same speed. Something is always sold faster, and some products are delayed on the shelves or in the warehouse. A completely logical solution is to order a smaller order of slow-moving goods for the next month. But it can also happen that a smaller quantity is ordered, and it may not be enough. To avoid this, it is necessary to calculate the turnover rate of goods.
The most important thing to know about this parameter:
Inventory turnover determines how quickly inventory can be converted into revenue.
This indicator makes it possible to identify “weak” goods and optimize warehouse balances. To do this, you need to:
analyze product sales by periods – months, quarters, etc.;
compare the volume of sales of goods during this period with the average for a similar period;
compare products of the same category according to this characteristic, for example, chips with chips, cookies with cookies, beer with beer.
If the turnover rate deteriorates, you should analyze the reasons for this. For example, the goods may be misplaced, employees are not working conscientiously, the product is too expensive for your customers or is outdated.
The main factors influencing the parameter: suppliers, logistics, traffic, demand.
There are no specific standardized turnover indicators: they are individual for each region and business sector.
A good entrepreneur, a store owner always knows what from the product range sells like hot cakes and what doesn't. Therefore, he can plan a certain quantity of goods at a glance, knows what can be discounted so that stale products are sold out faster. But if the store's product range is impressive, then such planning can sometimes fail.
Large retailers regularly calculate the turnover of their products, track seasonal fluctuations in demand and other parameters. Small retail outlets can do the same, as a result they can free up warehouse space.