Every sales rep is actually a business of his/her own under the roof of their health club. For example, salesman Bill Smith is a business within a business.
All companies and clubs pay attention to business performance indicators — so should sales people. All sales people should always know how many tours they have taken, how many appointments they have made and how many referrals they have received.
One major indicator to review is the 10-day marker. If a salesman needs to sell 30 memberships in a month to meet quota, then they will actually need to see at least 60 people in a month based upon a 50 percent closing ratio. At the 10-day marker a salesman needs to review how many presentations they have given. For example, if a sales person only has seen 15 people in their first 10 days, then that will project to 45 people seen over the course of one month. That indicator will show the sales rep that they need to kick it up a notch if they expect to hit bonus or simply hit the normal sales quota. They can use the 10-day marker for all performance indicators, simply take what you have done and multiply by three. This will give you your projected number; from there you can determine if you have done enough in 10 days to project the pace that you need.
Often sales reps will not know they are below pace. They can be deceived by a high closing ratio. Numbers seem to always work with averages. My numbers above are just examples, not industry standards, so please do your math accordingly.
Another indicator based upon the number above would be appointments. If you need to see 60 people, you would need to make about 120 appointments, and so after 10 days you would have had to make 40 new appointments. If you stay at that pace you will get 120 appointments and numbers will be in your favor that you will see 60 people and close 30 new sales.
Chuck Hall is the executive director at Big Vanilla Athletic Clubs.