Welcome again to SAM Moments™ and the summary of a recent conversation that I had with a colleague, Rick Camerano.
One of the things that I love talking about are someone’s Vital Signs, and not the ones that my wife deals with as a nurse! What’ I’m talking about are the 3 VITAL SIGNS OF SALES that determine the health of someone’s business, like that of an Agent, Advisor or Sales Rep.
These three metrics ultimately determine a Producer’s sales trend and will determine how much money they are going to earn or not earn. If a producer wants to earn more money, they must increase or do one or more of 3 things:
1. Ask more people to buy, i.e. Closing Interviews
2. Get more of them to buy, i.e. Closing Ratio, or
3. Sell more expensive stuff, i.e. Average Sale or Case Size
It’s just that simple! I first heard these terms used at what was then American Express Financial Advisors, but the Kinder Brothers had a similar formula in reverse called MEA, which stood for Market, Effectiveness and Activity. It doesn’t matter what you call them as many companies do, but these 3 metrics will impact a producer’s income the most.
You might be thinking the same thing Rick asked, “But what about making more Calls or getting more Referrals? Aren’t they important?”
Yes, they are absolutely important! Making more Calls, for example, is a great way to increase your number of Closing Interviews, and there’s nothing like getting more Referrals to increase your Closing Ratio!
Think of it this way: Just like a Professional Golfer has to play the hole backwards to improve his or her chances of sinking a putt, so do Sales Professionals: If they want to improve their VITAL SIGNS, they have to look backwards at the sales activities that precede them, and how well they managed them. That’s what we call Sales Activity Management.
So, if you are in sales and you want to increase your sales income: Ask more people to buy, Get more of them to buy or Sell more expensive stuff. That’s it…the 3 VITAL SIGNS OF SALES: Closing Interviews, Closing Ratio & Average Sale or Case Size.