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There are two things most sales people boast about in this industry: conversion rates and order values. However you need both to make a success of yourself. There is no point having a 80% conversion rate with a low average order value. Just because you sell 4 out of 5 leads doesn’t necessarily mean your making good money. But alternatively, you don’t want to be on a 10% conversion rate with that one sale being of a high order value. Again that’s not going to make you much money either.
You’ve got strike the right balance. 50% is a good conversion rate to aim for, perhaps with and average order value of anywhere from £2500 to £5000. You sell 5 leads a week with those sorts of order values then your doing OK. Anything more than 50% then you really are doing well, just make sure the orders are of a decent value!
You’ve got strike the right balance. 50% is a good conversion rate to aim for, perhaps with and average order value of anywhere from £2500 to £5000. You sell 5 leads a week with those sorts of order values then your doing OK. Anything more than 50% then you really are doing well, just make sure the orders are of a decent value!
>Yes you are right:0) It seems working in perfect harmony is essential in this business. We have consistently hit around 50% conversion every year with our average order value steadily on the increase. We peak and trough with sales and I tend to panic when we trough especially as the enquiries are steady. I think we should be fairly close to 50% conversion this year.
>Agree with you here DGB. We've got around 12-15 sales guys within our dealer network who will sell over £1m each during 2010. They'll all convert at over 50% of appointments.
But surely the true test for a good salesman is doing the above, and selling at a margin which is fair to the customer and good for the company. A salesperson can sell loads at a great conversion rate while giving the product away. And selling at too high a margin is unethical in my opinion. It's all about balance…