Keeping It Simple When Tracking Sales Performance
When it comes to tracking sales performance, many health club managers and owners think the more numbers, percentages and statistics they look at, the better. While it’s important to have good visibility into how your sales team is performing, too much data can be overwhelming and counterproductive. Keep it simple when tracking your sales performance.
Dax Derringer, the general manager and regional sales director of the Gold’s Gyms in west Georgia, is a strong believer in the “keep it simple” principle. Derringer and his team use a lead management system to capture all lead information, help keep track of the lead follow-up and report on how the sales teams are performing. While the software allows Derringer to pull many reports on the fly, he abides by the following strategies for effectively tracking sales performance in his clubs.
Get the Data Right: Before you can even start thinking about tracking sales performance, you need to make sure you have the right data to pull metrics from. At Derringer’s Golds Gyms, all walk-ins enter their own contact details electronically. The contact information, along with the lead source details, are entered via a kiosk that automatically passes the information to the club’s lead management system. This step ensures the club gets a more accurate count of how the lead heard about them and an accurate count of the number of walk-ins, as no lead is lost to paper.
Know Your Conversion Rates: Next, Derringer recommended that clubs figure out what their key conversion rates are. You need to have a clear understanding of what percentage of calls convert to appointments and what percentage of appointments convert to memberships sold. Calculate conversion rates by looking at your historical data. Derringer was able to easily calculate his conversion rates, as the information was readily accessible in his lead management software. Conversion rates give a clear benchmark for performance and productivity. You can also look at industry standards to gauge how your conversion rates compare to other clubs.
Track Key Performance Indicators (KPIs): Look at specific measures of productivity to determine if your team is set up for sales success. Derringer analyzes call and text volumes to ensure his staff is reaching out to enough leads every day, week and month. He then assesses the number of appointments added and the number of appointments booked for the day. Based on his conversion rates, Derringer can set the number of phone or text conversations staff need to have with leads and how many appointments need to be scheduled for his teams to meet their sales goals. By looking at these KPIs, Derringer is able to quickly and efficiently identify problems and coach his team where needed.
Make the Most of Your Marketing Spending: Once he has a firm handle on his team’s productivity, Derringer checks a report generated by his lead management system to find out which sources of leads are producing the most traffic for his clubs, which sources yield the most conversations with sales staff, and which convert to the most memberships. This report gives Derringer visibility into where his marketing dollars are being spent and which marketing campaigns are working the best. Armed with this information he is able to allocate his marketing spending more effectively.
There’s no denying that numbers and metrics play a very important role in running a successful sales team. However, Derringer cautioned against getting bogged down by too many numbers and reports because they will prevent you from seeing the big picture. He prefers to “keep it simple” and focus on very specific statistics that help him make informed decisions and keep track of performance.
Rachel Lai is the marketing manager for InTouch, the global leader in solutions to acquire and retain members for health and fitness clubs. She can be reached at firstname.lastname@example.org or visit intouchfollowup.com.