A Baptist Preacher once told me “Stop praying for sales. Make those calls. Seek, and ye shall find!”
Plenty of MSPs aren’t selling as much as they’d like to, but it's hard to find the path of least resistance when you're walking around blindly. Are you measuring your Sales performance? By following a simple Sales formula and targeting these five success indicators, you'll see that wayward customers and IT departments are easy to find and sell to.
1. Net New Appointments
The most important “Leading Indicator” of sales success will be initial appointments with new prospects. Some salespeople seem busy all the time, but don’t get anything done. If you aren’t talking to new prospects, you aren't filling the sales pipeline and are wasting valuable time and energy. Shoot for 2-3 new prospects per week.
2. Proposals per Month
You won’t make a sale without a proposal, so this metric is obviously important. You’ll want to know the number of proposals, the size, the type of solution, and the kinds of prospects. This metric is most useful when evaluated together with the next two metrics. Proposals take time to research and prepare, so don’t deliver a proposal unless the prospect is properly qualified.
3. Win Percentage on Proposals
You should be winning 25% - 50% of your proposals. Lower than that, and you are spinning your wheels. If it’s higher than that, you are underpricing your offers and leaving money on the table.
4. Average Size Order
The right size order will depend on your business model, but it’s very important to track. Many successful MSPs have found it takes time and effort to on-board new clients, so they’ve set a minimum size customer of $1,000 or $2,000 per month. Others shoot for $10,000 per month or more as their target. Find the “Sweet Spot” for your business, and stick to it. That means occasionally saying “NO” to opportunities either too big or too small for your business.
5. Time from Proposal to Close
There are two contradictory sales trends going on at the same time. Cloud sales are closing faster and big complex projects are closing slower than ever before. Track your time from proposal to close carefully, and take notice if the expected close date keeps getting postponed.
If your small MRR proposals are taking longer than a month, you are doing something wrong in the selling process. If your larger opportunities are hanging around forever and not closing, you aren’t pacing your sales correctly and not creating urgency.
“Success is a Statistical Event”
Your management dashboard should be tracking these five metrics every month. If you aren’t gaining consistent results, you can bet there’s a clue in these key performance indicators (KPIs) that will help you correct the problem.
Consistent sales results come from the skilled execution of simple sales steps. When you and your salespeople uncover enough new opportunities and pursue them with the right sales process, you will win new accounts and grow your business.
Do I hear an “AMEN?”
Read More Chump Change:
- How to Write a Terrible Employment Ad: Keys to Attracting the Cream of the Crap
- Famous Last Words in Sales
- MSP Sales Terminology: Out with the Old, In with the New
Mike also recently held the following webinar...