The Committed Sales Plansm

Regression analysis, time series trends, guesses (maybe called "judgment"), or hockey sticks. There's a better way to set sales targets. Its called the Committed Sales Plansm and it focuses attention on turning your strategy into action.

Strategy Component Strategic Initiative Measure Key Task
Expand Customer Base Acquire New Customers # New Customers Lead Generation
Defend Market Share Retain Current Customers Retention Rate Competitive Analysis
Special Promotions
Penetrate Current Market Increase Sales/Customer Average Sales/Customer New Products

Start with the Strategy Communicatorsm, secure commitment on the strategic initiatives [who will be responsible for results], and define the measures of success. Note how the key tasks are the actions you will take to implement your strategy and the measures will answer the question "How are we doing?".


There are three variables that you can use to completely plan and track your progress toward achieving your strategic sales goals:

1) the number of new customers acquired,
2) retention rate - the proportion of existing customers that continue to purchase, and
3) the average sales per customer.

The actions you will take to achieve each of these goals are very different for each category. Your strategy will determine which category to emphasize.

The Committed Sales Plansm
 

2004

2005

Growth

Key Commitments
New Customers 84 90 6
Retention Rate 65% 85% 20%
Average Sales per Customer
  - Retained Customers $7,528 $8,097 $569
  - Lost Customers $2,000 $1,800 ($200)
  - New Customers $2,391 $2,622 $231
Total Sales ........ $3,357,511 $3,654,224 $296,713

John Prentice has the expertise and experience to help you adapt this action-oriented process to your company and make it the last sales planning methodology you'll ever need.