It’s very tempting to focus on trivial, easy-to-measure things like the number of sales calls made each day, week, or month. But routinely keeping a tally of this useless, hollow metric may be the single biggest mistake sales leaders make.
Keep in mind whatever you measure you get more of. It’s seems simple enough but if you want to get more of something – anything- start measuring it. But, the idea that more sales calls equates to more sales is completely unfounded. In fact, I’d go so far as to say it’s the primary reason most sales teams under perform. The false assumption being made is you can sell something simply by getting in front of someone one time and making a great “pitch.” If that were true, then yes, you should make as many sales calls as you possibly can. But, any salesperson of substance knows this is simply not how it works.
If you begin with the end in mind, the ultimate goal here is to have lots and lots of customers who are truly engaged with your products and brands. To get there, it takes multiple, high-quality interactions with customers before you can fully engage them. Building rapport and relationships is a time consuming process. By emphasizing a certain number of sales per day, you are actually inhibiting or working against this goal. Here are 4 reasons why:
The first problem with measuring the number of sales calls is it does not differentiate between high quality opportunities and low quality opportunities. Not all accounts are equal. This trite and tired metric of number of sales calls can really only measure one thing: effort. But, you can’t take effort to the bank. You can’t pay your bills with effort. You can only take revenue to the bank. “Effort” in and of itself is not a useful metric. What a great recipe for disappointing sales results: treat all customers as if they have the same value and measure the number of sales calls made on this homogenous customer base.
Secondly, the idea that making your salespeople work harder will lead to more sales is ridiculous. If you hired good salespeople to start with, they are most likely already working hard. Putting more pressure on your sales team or requiring a higher volume of work from them will actually hurt your sales – especially from your existing base of great customers which, by the way, is your best source of new distribution and revenue. Instead of focusing on the volume of work being done try looking for ways to improve your sales process and your sales approach.
Third, filling out call reports is a process-heavy task. By “process heavy” I mean time consuming. Time is THE most precious asset a salesperson has. Measuring results, by contrast, takes no time at all. Give your salespeople SMART goals, measure their progress against those goals, and stop worrying about how many sales calls it takes to reach them. There’s a name for salespeople who consistently miss their sales goals: unemployed.
Lastly, measuring the number of sales calls doesn’t tell you much about what’s really going on in the accounts or the marketplace. What if some of those sales calls you tracked were with the wrong people in the account? What if the primary buyer wasn’t present? What if the buyer was present but didn’t like your salesperson or her “pitch?” At best, this metric will give you a false sense of success. What good is a call report jam packed with a bunch of attempted and unproductive sales calls?
From the time you put an account on your target account list until the time they actually buy could be several weeks or months. We call this the “sales cycle.” There’s no set number of “touches” that it will take for them to finally buy (completing the sales cycle). Under-estimating the length of the sales cycle is a huge pitfall most companies make every day. “It takes what it takes” to get a customer to buy something. And whether or not that customer continues to buy from you regularly has everything to do with how they were treated along the way.
So what should you measure? Leading indicators like the number of customers who buy more than one SKU; sales per point of distribution (velocity) and how long a customer has been buying from you. Track real time sales results by sales rep, customer segment, channel of trade and product group. Thank goodness we live in an age when keeping your finger on the pulse of these powerful sales metrics is as easy as a couple of mouse clicks. CRM (Customer Relationship Management) tools allow you to do it 24/7– even on your mobile device. Things that used to be difficult to measure no longer are.
Isn’t it so much better to focus on sales activities that make the most sense rather than something that can easily be measured? Measure what matters. Ignore what doesn’t. Hire great sales people and let them do their job. Stop slowing them down with useless metrics and meaningless call reports. Focus on results, not effort.