People are drawn to formulas because they like something tangible, a road map, a plan, anything that guarantees results. We all know the drill when we start in inside sales capacity, we’re given a quota, told to make 25-50-65-75 outbound calls per day and set appointments, or hand over leads or close oppotunities.
Whenever I ask a rep what their “Success Formula” is, they usually outline activities they do each day. This includes making outbound calls, answering emails, responding to RFP’s, sending quotes out, trouble-shooting issues, researching new prospects, etc. These activities are all ingredients to help design your formula.
When designing a formula, the best way to start is by your quota/revenue goals for the month or quarter and then work backwards from there. Here are some variables to consider:
Monthly Quota__________
Number of Business Days per Month __________
Daily Number___________
It’s still a number game so how many outbound calls will you make per day? Remember our connection rate is somewhere between 8-10% so if you make 55 outbound calls per day, changes are you will only connect with 5-6 and when you do, how qualfied will they be? How many qualified conversations will you have per day?
How long is your sales cycle? How many presentations or demos do you have to make? What’s your conversion rate on these presentations? If you make 5 demos per week and your conversion rate is 50%, you will have to include that into your formula.
The most successful salespeople put a value on their time and each day they work, they know they must hit a certain number and understand what it takes to get there. Set up your formula for success, post it on your monitor!