Collectively over the years I've heard every excuse as to why people don't need to track metrics. "You don't understand I'm just too busy to track that type of thing," or "what is that really going to do for me in the long run." Well, in the long run, if you truly understand what the outcomes are statistically every time you pick up the phone or attend a networking event, couldn't you predict the future? Wouldn’t that make life a little less stressful?
Many feel that tracking metrics is more of a micro-managing tool, but for me it enables me to understand four key elements: predictability, accountability, time management and how I am gaining new business.
Being predictable is my number one reason for tracking metrics. If you understand the amount of calls, networking events or referral conversations that you need to have to close one piece of business, wouldn't you want to know that? Understanding that if you made 20 dials a day and from those calls it netted you 4 conversations, and from the 4 conversations you were able to book 1 appointment. If you did this every day you would average 5 appointments per week. Let’s assume you close half of the prospects you meet with, that would result in 2.5 closes per week, or 10 closes a month. This will make it fairly easy to predict production, or more importantly your commission.
In today’s business climate, nobody wants to be held accountable, and I understand that. Who in their right mind wants to look bad to their bosses or peers? However, at the end of the day you alone will be held accountable to yourself and your production. You should never be satisfied just winging it. Self-responsibility is an attribute that is lacking in many, but the truth will always lie inside the metrics.
3) Time Management
One of the countless issues that I hear from clients, managers, and business owners is that there is never enough time in the day to get "everything done." As business owners, business leaders, and sales professionals we should all agree that nothing happens in business until someone sells something. You must have a deep understanding of your metrics and what it takes regarding daily activities, to get to your desired outcome. This will not only make you more efficient but will save you time by concentrating on those activities that are driving your sales.
4) How I'm Getting My Business
Not every sales team/sales person is the same on how they are successful in gaining new business. Some are great networkers and have figured out how to leverage their network into new relationships, while others grow through grinding out cold call after cold call. Either way, understanding what activity is driving new business is critical to one's success.
Whether you track your activities or you don't, understand this: if you truly want to predict the future, live and die by your activity metrics!