How to Set Your Sales Goals with Confidence
You want to reach a big sales goal, but is that number realistic?
How do you know what number should be your sales goal for the quarter or year?
There is a simple 3-step system you can go by to solidify your ideal sales goal that is realistic yet challenging at the same time.
Know your current sales conversion rate
Whether you have a sales team or you are completely responsible for sales you must have your sales calculation derived from prospects to paying customers.
You need this number to understand how many sales conversions you must have with ideal customers to obtain your desired sales goal.
If you reach out to 100 prospects in Quarter 1 and 50 become paying customers for a $5,000 service.
This means, your sales conversion rate is 50% and within 100 sales calls you will make $250,000.
If you wish to make $500,000 in sales next quarter you know that you must hold 200 sales conversations.
If you are unable to hold 200 sales conversations and still want to make $500,000 in sales next quarter you can do this instead…
Increase your rates
If you are only able to hold 100 sales conversations and cannot increase the amount of sales calls but still look to scale your sales to $500,000 you must increase your product or service rates.
Many entrepreneurs have difficulty increasing their prices as it usually is directly related to personal limiting beliefs about how valuable you feel you are to your customers and at times, the world. Take this into consideration if you are feeling a self-worth challenge or simply don’t see a reason to increase your package or product rates. Currency inflation rates within the United States alone change year to year but have a habit of staying within the 1-3% range. This means that the $100 you have sitting in a bank account from last year was affected by the 1.9% inflation rate in 2018. This equates your $100 in 2019 to $98.1 as it has decreased by 1.9% in value.
Your programs and products are also affected by inflation. They are no longer as valued as the year before. I always encourage my clients and fellow entrepreneurs to increase their prices every year.
The $5,000 service in 2018 if increased keeping in mind inflation rate of 1.9% equates to a $95 increase for a $5,000 service. I suggest you round up to stay ahead and make the $95 increase to $100 for a total of $5,100. – which equates to 2%.
After increasing your rates to keep up with inflation it will still not allow you to reach your goals that are double. Additional to inflation rates compensation increase the amount of value you provide your customers without having to spend much time on deliverables.
Extra valued deliverables can include but are not limited to online recordings, free tickets to events, VIP access, or additional laser-focused sessions with the expert.
Prepare Your Calendar
Quite simply, you cannot have more sales calls or conversions without having more leads entering your sales funnels. This also means that your calendar must be optimized for the lead generation activities you will need to dedicate time towards and all the sales conversations you will need to host.
If your calendar is currently optimized for 100 sales conversations and you want to reach 200 your calendar must be modified to accommodate them.
This will also mean that you must outsource tasks and duties to other people or hire more salespeople to accommodate your increasing sales calls.
Scaling sales is simple to do but it comes with plenty of residual strategies.
How do you accommodate the new sales? Where will you source the new leads? How will you deliver your service or product to these new clients?
Scaling business and sales is not simply about going and finding more clients, converting them into paying clients, and then providing them the service or product. It comes with knowing how to keep your systems and operations together during scaling as well.
Before you get into altering your systems and operations you must identify your current conversion rate, increase your prices accordingly, and prepare your sales calendar (and team, if applicable) to handle the influx in sales conversations and customer deliverables.