By The Numbers-Closing RatiosWhen looking at sales rep closing ratios, it is not enough to simply look at how many leads they are closing. You have to also look at the cost of those leads and the size of the contracts.
In this picture you see Scott and Pablo. Scott was assigned 79 leads and closed 12. His closing ratio is only 15.9%. That doesn't look good already, but then to add insult to injury for the business owner, it cost $12,940.58 to get those sales of $73,525.83. That means that the company owner is paying 17.6% off the top of each of Scott's contracts in order to get a job.
In this case, the marketing should have been around 5% in order to stay within the right profit margins. Scott is not making money for the company already before he has a signature on the contract at at the rate he's selling. Of course, if he'd increase his closing ratio those costs might go down, depending on the cost of leads and contract sizes.
I'll explain Pablo tomorrow. In the meanwhile, go to either www.bythenumbersroofing.com or www.getbythenumbers.com for a further explanation of what should be looked for in closing ratio reports.
In this picture you see Scott and Pablo. Scott was assigned 79 leads and closed 12. His closing ratio is only 15.9%. That doesn't look good already, but then to add insult to injury for the business owner, it cost $12,940.58 to get those sales of $73,525.83. That means that the company owner is paying 17.6% off the top of each of Scott's contracts in order to get a job.
In this case, the marketing should have been around 5% in order to stay within the right profit margins. Scott is not making money for the company already before he has a signature on the contract at at the rate he's selling. Of course, if he'd increase his closing ratio those costs might go down, depending on the cost of leads and contract sizes.
I'll explain Pablo tomorrow. In the meanwhile, go to either www.bythenumbersroofing.com or www.getbythenumbers.com for a further explanation of what should be looked for in closing ratio reports.
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