How would you like to double your sales revenue? Of course you would! The “Double you sales Revenue” formula is a simple formula which could potentially do just that. But hey, even if you just increase your sales revenue by 25% that’s got to be worth your while right?
When I am called in to do sales turn around work (Help companies turn their flagging sales around), in most cases I simply go to work helping my clients with strategies to implement the “Double you sales Revenue” formula.
The “Double your Sales Revenue” formula is a simple recipe that any sales leader can apply if they want to increase their sales revenue. This formula works in any market, selling any product in any environment.
As part of the sales coach academy training program we teach sales managers this straightforward “Double your Sales Revenue” formula, and how to apply it to their own individual team and selling environment.
The formula for doubling your sales revenue is as follows…
P x Q x M=SR
Sales Production x Sales Quality x Motivation = Sales Revenue
Double any of the above multipliers and you’ll dramatically increase your sales revenue. Double all three and you will double your sales revenue.
So let’s unpack the formula…
What is meant by sales Production? Sales Production encompasses all the activities required to deliver sales. These include activities like:
- Planning and research
- Lead generation
- Lead qualification
- Client communication
- Proposal writing
- Follow up
- Service calls
Sales Quality refers to the quality of the delivery of the above. So as an example…
Let’s take the sales activity of telephone appointment setting. This for most sales organizations is a foundational activity required by the sales team. The Quality factor is the distinctive manner of the sales person’s telephone style and their skill in putting the prospect at ease as well as their ability to present a compelling enough case for the prospect to agree to an appointment.
This is often the difference between those on the sales team who struggle to get appointments and are often immobilized by the sense of rejection and failure that comes with poor or average phone appointment results, and those sales people who have a full calendar. The same can be said for any other sales Production activity, whether it be presenting, negotiating, planning, researching, qualifying etc. It is the Quality of the delivery of the specific activity that determines the success of that activity.
So when sales organizations refer to selling as a numbers game, they are only referring to the first part of the formula-“The Production factor”. Make more sales calls, see more people, do more activity only focuses on one third of the Sales Revenue Formula. Does it work? Sure it does! If all you did was to find a way to multiply your current sale Production factor by 2, you’ll easily double your current sales results. This is provided you have the capacity to double all sales productivity.
Ramping up activity is most often the first place that management turn to, to ramp up sales. It’s also the easiest factor to improve because it’s the more measurable of the two. It’s easier to manage. In support of this, most research on the subject of sales productivity says that on average sales people are only working to about 60% of their Production capability. Therefore with a measured focus on increased sales activities, you will most certainly get a lift in sales.
That being said, simply amping up sales Production often burns many a would-be, potentially great sales people and pushes them out of sales completely.
Sales managers must also learn how to drive the other two thirds of the sales revenue formula if they want double their sales.
Besides working on the Quality aspects of the sales activities, sales managers must learn how to drive individual motivation. Sales managers must understand the “hot” buttons and drives of each of their sales people individually. A “turned on” and driven sales person will accomplish amazing things. They will do whatever it takes to bring home their sales number. Unfortunately the vast majority of sales managers have no earthly idea how to motivate their sales people. Even though the plethora of research points to the fact that money is not a primary motivator, still management believes that “throwing money” at the motivation issue will solve it.
Put them all together
So for all you skeptics out there who were wondering whether you could really double your sales revenue… watch this?
P (2) x Q (2) x M (2) =more than double sales revenue
Starting with your current level of sales Production. If you could (and I’m not saying you can, but if you could…) double the amount of sales activities your sales people were currently delivering, what would happen to your sales revenue number? Hey what if all you could feasibly do was to increase your sales Productivity by just 25%, what would the impact on your revenue line be?
Now let’s double the Quality and effectiveness of your sales people and their sales activities. So now if your sales people’s average conversion rate was say 9.5%, what would happen to your sales revenue line if you could double it? Hey what if all you could feasibly do was to improve your sales Quality by just 25%, now what would the impact on your revenue line be?
Finally, what if you could double the level of motivation of each of your sales people? How much more effort would they put in to their sales activities? How much would sales Production increase? How much more time and effort would they put into improving their capabilities to raise their Quality quotient? But hey… what if all you could feasibly do was to improve your individual Motivation by just 25%, now what would the impact on your revenue line be?
Here is the great news. It has shown that the world’s top sales managers use the regular practice and discipline of sales performance coaching to drive up each of the factors relating to the “Double your Sales Revenue” formula. If you would like to see data proving this fact see the video at “The Sales Coach Academy”
If you would like some help applying this simple, but definitely not easy formula to your sales environment, write to me at firstname.lastname@example.org and if I can’t help you directly, I can at least point you in the right direction to get the support you need to increase your sales numbers.