Three ways to measure current activity before you spend another dollar.
At any given moment in time, someone in a sales or selling role (that’s you) is making this type of demand or excuse in order to generate more revenue. Before you decide to spend more marketing $$, make sure you are maximizing the opportunities that are already coming through the door.
Why is this important? It’s the proverbial ‘low hanging fruit.’ Anything you do to turn this existing prospect stream into clients generates incremental revenue for no incremental cost. There’s no risk, and it’s completely within your control.
But in order to make that improvement, you need to measure the team’s ability to turn calls into clients. Here’s where we can steal a few metrics from sales organizations.
- Lead conversion – turning a call from a prospect into an initial meeting, consultation or whatever your next step is. This is a sales call! Make sure that whoever handles these calls is pressing for the appropriate next step. With 500 prospective client calls each month and 50 consultations (10% conversion), think of how much more revenue 20% or 30% conversion would generate.
- Close ratio – percentage of those initial meetings or consultations that turn into clients. This measures your associates’ ability to close business. In your line of work this is extremely complex, because your prospects don’t want to be sold. How well does each associate create a path where the signature is a natural and logical step?
- Initial client revenue – amount generated from the initial client commitment or retainer. If this applies to your firm, it is a very scary process. Your associates don’t want to lose a prospective client by asking for too much, but also don’t want to leave money on the table. Who in your firm does this best, and what is the right number?
Once you have the ability to track these metrics, build a monthly report card by associate. View how each associate is performing vs. the team. Not only will you identify coaching opportunities for marginal performers, but you can have the top performers share their successful tactics with the team to improve everyone’s results.
If you can’t measure it, don’t do it.