This is the simple mathematical equation that determines how your business succeeds:

 

 

UPs x Close Ratio x Average Sale

As the old saying goes – "That’s all there is, there ain’t no more!"

 

 

The equation has only three elements, first being UPs – the number of customer opportunities you get through your front door.

If you know this value, you can begin to truly understand your business. If you don’t, you’re missing a tremendous opportunity for more sales revenue

 

 

Your closing ratio is the percentage you close versus the total number who come in

Close ratio can be calculated two ways:

On the number of customers

OR

On the number of customer VISITS

 

 

Average Sale is your total sales for today, divided by the number of customers who bought today

This is NOT the same as average ticket

There can be many tickets for a customer, or only one – depending on your operating systems and rules

In some systems, average sale and average ticket are the same, but you must know the difference.

 

 

This is the percentage, or actual dollar variance between your top performer and your lowest performer, for each element in the sales success equation

This concept is the basis for many of the Trax System reports, and is the most important concept in the science, and art of individual sales performance improvement

 

 

Where individual performance is the backbone of your business, knowing the range of performance (variance) among sales staff members is the crucial first step toward "raising the ship".

Sales management is defined as managing, and controlling this variance

 

 

Half the staff ,or more, perform below average in one of the two performance variables – close ratio or average sale

Your lowest performers in close ratio get the most customer opportunities

15% to 20% more sales could be generated by fixing this problem. Same traffic, same advertising – better performance

 

 

For the typical NHFA average profit store, this 15% to 20% improvement would double the profits.

 

 

If you don’t know any of the values – traffic counts, close ratio or average sale - for your sales success equation, you’re running blind

You’re looking for more business in all the wrong places

 

 

Furniture/Today Magazine research shows that 40% of furniture shoppers don’t make the purchase in the same year they shopped.

Typical store closing ratios on total traffic are under 20%. We know. We track it in over 2000 furniture stores

 

 

They’re out there with their needs unfilled, and the worst part is they’ve been in your store, your people have talked to them, but they didn’t buy – anywhere.

So, what are you and your sales staff doing to get them back into your store to complete the purchase?

 

 

When a shopper leaves your store without buying – after being " helped" by a salesperson, are they gone forever regarding that purchase?

Does the "Be-Back Bus" stop at your store?

Do you have a way to know how many of the "They’ll be back" customers, actually do come back?

 

 

Automated door counters that measure only one-way traffic, and only groups

Automated Upboard for salespeople

Customer information gathering system

Automated metrics gathering software

Over 50 automatic reports on traffic, individual performance, category close rates, advertising effectiveness …

 

 

Revenue per UP reports, for individuals and store

Performance summary for any time period showing each salesperson’s effectiveness metrics

Sales management reports for coaching and training at a mouse click

 

 

Automated "To Do" lists printed every day for every salesperson to ensure follow up with those "non-buyers" happens.

This is the only affordable, simple to use Customer Relationship Management software available for furniture salespeople and managers

 

 

A total sales metrics gathering system

An automated UP system that works for our industry

A complete sales management support system that eliminates guesswork and subjectivity

A customer contact management system

Up-to-the-minute sales performance reports on the front end of your business that equal the kind you have for the back end.

 

 

What would a 15% increase in sales revenue do to your profits?

For the typical NHFA single market, family owned furniture store, profits would double!

Trax will help you see the exact points of improvement that are required.

Remember – you can’t improve what you don’t measure.

 

 

The concept of constant improvement, drives the best businesses in the world

Trax will help you understand exactly what your improvement goals should be for the two critical sales performance metrics

Close ratio

and

Average sale

 

 

Higher water raises all ships

You’ll always have a range of performance among people

But, by improving the lowest performance to the existing average level, you’ll raise the tide in your business

It all begins with knowing the numbers

 

 

Salespeople are the guardians of your customer base

They’ve engaged them all

What is your strategy for keeping them coming back through relationship management, personal attention, and follow up?

 

 

Trax’s internal individual calendar tracks all salesperson customer follow up actions, and automatically prints an action list every day.

Managers get a master list to ensure compliance and coach individual performance in this critical personal selling discipline

 

 

No more unused, un-manageable file boxes

No more management stress over who’s doing it, and who’s not

Trax helps managers and owners control what happens to their valuable customers and prospective customers

Follow up becomes the norm, not the exception

 

 

Think about those 40% of all shoppers who do not buy in the same year they shop

Furniture/Today, February 2004

You’ve paid to bring them in, your people worked with them, but, their need is still unfilled – So, what is your strategy and system to bring them back to complete their project?

 

 

There is more new business to be done immediately after your customers receives their new furniture, than at any other time.

Are your salespeople calling all delivered customers?

Trax will help your managers see to it that it happens

 

 

There is industry research that shows that 75% of satisfied furniture buyers, make their next furniture purchase at a different store

Why? Because there has been no contact by the original store since the sale was made, and the deposit, or payment made. NO loyalty was earned.

 

 

Helping your people achieve their personal goals for income, and growth is the highest form of leadership in the role of your sales managers

Concentrating on their goals, and providing them a pathway to success is a key element in performance improvement and employee retention

 

 

You’ve got goals

Salespeople have goals

Customers have goals

Trax will help achieve them all

 

 

You’ll know more about what’s really happening "out there", than ever before

Improvement goals, and pathways to achieving them will become clearer

Accountability for performance will become your company norm

Profitability will improve for now, and for the long term

 

 

For large chains, or multiple store companies Trax offers unparalleled performance reporting on an individual basis

Trax is fully web-enabled. Owners and managers can see the data for all stores on demand

 

 

Is your traffic in all markets increasing or decreasing?

Not knowing can hurt you – badly

If sales in a market are down, is traffic down accordingly? Or is effectiveness down?

Trax will help you to know these answers

 

 

Please give us a call so we can discuss the two basic changes that need to happen on your sales floor to make this work.

888-646-5462