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> Living on the Top Line - The Book > Joe's Blog > Are all of your salespeople providing equal ROI on their customer traffic?
Are all of your salespeople providing equal ROI on their customer traffic?For as long as I've been in this business this one simple idea has drivin my work in strategic sales management and training. When you divide each individual's total sales volume, either written or delivered, by the number of customers they engage the result is you salesperson return on investment. I believe this is the most important number in your business, because everything starts here.
I find in virtually every store I consult with that the variance in ROI is as much as 50% - great people produce twice the return of your lowest performers. To compound the issue, the lowest performers always get more customer opportunities thatn the top performers. This should be your primary sales initiative because its costing you a lot of money.
The first issue is that in a one-on-one selling environment where every dollar generated must pass through a salesperson, you must know how many customer opportunities each individual person gets. If you don't track individual opportunities, you can't fix this, and you are losing a lot of money.
The metric is called several things - performance index, revenue-per-opportunity (RPO), but it's always just sales divided by customer opprtunities. I know you have to know this number in order to know what actions to take, what training to provide, but you also have to know the value of each of its components; close ratio and average sale. You can get to a specific value for RPO in tow ways depending on th values of those two variables. Then you can train in targeted ways to fix what needs fixing.
All my training for both salespeople and managers is aimed at getting my clients the highest return on their customer traffic investment.
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