Every sales leader should be able to answer these simple questions:
1. How many sales do you need to close in order to meet your revenue goal for this month or quarter?
For example, if your revenue goal is $1 million and your average order size is $2,500, you’ll need 400 orders to meet your goal.
2. How many sales opportunities will you need in your pipeline to close the requisite number of deals necessary to meet your revenue goal?
If your conversion rate to a sale is 10% and you need 400 orders to meet your revenue goal, then you’ll need at least 4,000 opportunities in your pipeline.
3. How many leads do you need in order to generate the requisite number of sales opportunities necessary to meet your revenue goal?
Now say your conversation rate from a lead to an opportunity is 20%, then you’ll need 4,000 opportunities in your pipeline to meet your revenue goal. That means you need 20,000 leads to make this happen.
Just remember, the best sales leaders need to know these answers to consistently meet their revenue goals. Be prepared, and you’ll be ready to succeed.