Another metric that has been proven to be quite valuable for both staff managers and employees is the first appointment to sales ratio. What is its purpose, though? By using this formula, you can keep track of the number of sales appointments that reach the next stage in the sales funnel.
It’s true that having a notable number of appointments is a good indicator. This could illustrate that your strategic approach is working and that you’re reaching your targets. Nonetheless, this isn’t necessarily the best-case scenario. The best-case scenario is if the prospect goes beyond the first stage, to the second stage, the third stage, and so on and so forth. This is a reliable sign that mirrors your audience’s intention of purchasing.
In simple terms, the first appointment to sales ratio clearly shows whether your sales channel is persuasive enough or not. Thus, you can see why this metric is of utmost importance for marketers, and not only.
What Formula is Used for Calculating the Ratio?
You should utilize the following formula for calculating this ratio: (number of second-stage appointments ended / number of first-stage appointments ended) x 100. At the same time, experts advise calculating this ratio every month.
By calculating this on a monthly basis, you can clearly see a drop or increase in numbers, giving you a clear insight into how different strategies might work or not. What should the KPI target be, though, for the first appointment to sales ratio? While this is merely an approximate number, most experts think that a 36 percent to next stage would be beneficial for that specific firm.
Other Points Worth Considering
Every business wants to optimize its chances of closing the deal. This is why it should be a top priority to do what lies in your power to turn that first appointment into a sale. If that first appointment is successful, this highlights a range of aspects. First and foremost, it points that your sales team has done a good job in this respect.
Additionally, this could also mirror how many meetings your sales assistants ought to have in order to concretize an actual contract.
More specifically, this KPI calculates the success rate of the major step entailing the actual sales process. To that end, the first step is actually measured by utilizing the percentage of conversion to appointment ratio. The later KPI illustrates the number of conversions that actually led to appointments – appointments that took place as a result of these interactions/operations.
The first step – namely the action of making appointments is, of course, a critical step within the sales process, as it is the first step that gives your sales team the chance to build trust. However, it is the second stage that concretizes the deal.
On that note, it’s critical for team managers to utilize these KPIs to establish the persuasiveness of their approach, and whether specific changes ought to be implemented or not. The objective of both the first and second appointments ought to be specifically clarified beforehand for best results.