» How to Set and Measure Your Business Goals

I received a call from a client’s sales manager asking me how many calls I expected my sales reps to make. I told him that throughout my sales career in this industry, beginning when I was an independent ad sales rep (commission only), then a publisher (with 3 sales reps), to a Regional Sales Director (16 reps) and then VP of Sales (over 50 reps), I never measured phone call volume. He seemed surprised, as that’s been one of the metrics he’d been judged by as a sales rep for most of his career, which is why he’s been using that as a benchmark for his own team.

I explained that, at least to me, measuring call volume was a distraction, as call volume was not my goal. More sales was the goal, so that’s what I measured. I never asked my sales reps for call reports, or used systems to measure their call volume… that is, unless they weren’t making their sales numbers. If the production wasn’t there, then I wanted to know what they were doing. Interestingly, my top performing reps often made the fewest calls. They just had more productive calls. My lower-performing reps were often making lots of calls, but they weren’t going anywhere.

What’s your benchmark?
What are you measuring in your business? Is it in alignment with what you want to achieve? Sales volume is certainly a good measurement, but profitability is a better one. It’s easy to increase the number of sales you make. Just lower your prices until everyone says Yes! – I don’t know about you, but that’s not what I’m looking to achieve. What about sales dollars? That’s a better benchmark, but as with sales volume, it is an incomplete measurement.

You may decide to spend more time with your family. But if you have your eyes glued to your phone while you’re with them, what did you really accomplish? The key to accomplishing your goals is to set better ones. Make them lofty, but realistic. Don’t set yourself up for failure, set yourself up for success. A wall just a foot above the ground is an easy bar to walk over. One twenty feet high is nearly impossible one to surpass. Definitely reach higher, but also have a realistic plan to get there.

Measuring conversion
I often get asked about conversion percentages – the amount of leads you should be converting to a sale. However, these numbers vary from business to business. If one wedding pro’s website has clear pricing information, while a competitor has none, the second business may end up fielding many inquiries who can’t afford them, artificially increasing their inquiry numbers, and decreasing their conversion percentage. If you really want to measure conversion, you need to be looking at how many visitors come to your Storefront or website and then take the next step to make an inquiry, or click through to your site from your Storefront and then make an inquiry. That’s going to be really hard to track unless you have very good website tracking software and know how to properly read it.

That said, you can track inquiries to conversations, and conversations to either appointments or sales and appointments to sales. You need to keep good records. The first rule of computers that I learned was the acronym GIGO – Garbage In, Garbage out. If someone makes an inquiry, but you’re already booked on that date, and they can’t/won’t change their date, that was still a good inquiry. Unless you have an availability calendar, so they can check your date before reaching out, those are valid inquiries. We know from WedInsights that nearly 90% of couples are looking for price before they reach out to you, so displaying some kind of pricing guidelines is beneficial to getting better quality inquiries. And yes, I know that many of you don’t want to display pricing, but when you’re the customer, aren’t you looking for the price?

Inquiries, conversations or sales, oh, my!
So, what should you measure? Start with the easiest things to measure – the inquiries that come in through your website, Storefront, direct emails, social messaging, etc. Then calculate the number of inquiries that turn into meaningful conversations. The last conversion is to measure how many of those conversations become sales directly, or lead to more detailed meetings that then turn into a sale.

You’ll want to track the conversion from each source separately to see where your best leads are coming ‘through’. Notice I didn’t say where they’re coming ‘from.’ The reason is that you don’t get business ‘from’ your website, you get business ‘through’ it. They had to come ‘from’ somewhere to get to your website. Your couples, just as when you’re the customer, make many stops along the way to get to you. You’ll probably never know all of them, just the last one or two, and if they also were referred to you by someone they know, you may get that as well. It’s an inexact science, at best.

What’s the trend?
Reporting like this is most helpful by watching trends, rather than discrete numbers. You need to see how these conversions are trending over time so you can have visibility to improvements and degradations. If you change something on your Storefront like adding pricing, or updating photos and videos, or getting a higher placement, did it make an impact on your inquiries and click-throughs? If you updated your website, or better yet, built a new one, did it affect your inquiries? However, don’t forget that you get what you measure, so keep an eye on your sales and profitability numbers as that’s really what you want. Higher sales volume without higher profit is a poor outcome. It’s nice to say you did more events, but not if it’s not flowing to the bottom line. As I’ve said before, I want to feed your family, not your ego!

WeddingWire Education Guru Alan Berg, CSP has over 20 years experience in wedding related sales and marketing, and is an author, business consultant, a member of the National Speakers Association, and the wedding & event industry’s only Certified Speaking Professional®. Learn more at alanberg.com.