Monday, December 8, 2008

Understanding Leading Indicators and YOU

Every Monday morning I have been publishing what reports are coming out for the next week in my “Week Ahead” blog.

When a company starts understands the leading indicators and how they affect them, they can start to put them into perspective as to how they affect or don’t affect their personal sales growth or decline by drawing parallels to these trailing indicators to manage, coach, train, and lead, their companies projections or hot points so they can make positive changes that will help them achieve the results they are looking for.

It is normal for a company to produce sales reports at the end of the month that illustrate results, often product, profitability or past trends in revenue. The key work is PAST. Companies must start looking at the leading indicators as to how they directly affect their future, if they want to be able to really use any of these reports.

The number of sales calls made, calls by type of customer or prospect, pipeline fluidity, pipeline accuracy, forecast accuracy, number of orders in the pipeline, number of deals pending, compensation plan statistics, product knowledge, selling skills, customer interaction, peer and support involvement, and training are just a sample of the many internal static’s that should be measured and monitored each and every day so you can plug these results into a sales projecting scenario and project future sales.

The closer you are able to measure or gather any of these statics, plug them into your company’s sales projections, and relate them into the leading economic indicators or any together economic reports the more you can begin can project how to these indicators can change what you should be doing and cause you to make necessary changes so you hit your target goals. The process starts with identifying possible indicators that have a strong link to your sales revenue.

From there, you must prioritize and narrow down the key indicators that if watched correctly will move behavior in areas you utilize. The data can easily be put onto to a scorecard of some kind where it can be watched, managed and used.

With this information, the sales manager can have what they need to work with their salespeople to coach, train and move them in areas that create maximum ROI for the company..

Once you learn what and how specific indicators affect your company, you can be proactive and will start to see a difference in driving sales.

Larson note: For those of you that have thought I publish my weekly “Week Ahead” for the fun of it, think again. I use this stuff personally, to the point where we at Larson’s are now billing out more hours per week than anytime in our 33 year history. History can be your best teacher if you learn how to use it.

Howard Larson
Larson & Associates
Target Marketing & Telesales Professionals for new account acquisition
Making good businesses great and great businesses even better

P.S. Get in control of your marketing destiny with a guerilla marketing consultation. Call today and schedule your appointment.

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