The correct application of sales forecasts and solid revenue forecasts depends on the use of specific indicator data, such as average ticket, conversion rate and average sales value . We will now find out what each of these means.
Average sales ticket
The average purchase value of each customer corresponds to the average list building for mlm ticket, that is, the value of sales per customer divided by the total number of completed sales, will be used in applying the forecast.
The average ticket can be calculated using two simple formulas:
Average Ticket = gross revenue / sales volume
Or
Average Ticket = total sales in R$ / number of customers
Conversion rate
To understand your company's conversion potential and generation of concrete results, you need to identify the corresponding conversion rate .
Called the conversion rate, we can calculate it as follows:
Conversion rate = total number of leads obtained / number of leads converted
Average sales value
Finally, the sales forecast will use the average sales value to include in the entire forecast analysis together with the other metrics.
To calculate the average value, we have:
Average value = average ticket / conversion rate
The sales forecast calculation can be obtained using the result of each of the metrics considering the desired period of calculation. If you have the average sales value, just multiply it by the number of active leads and that will be the result of the forecast.
Once the results are presented, it will be possible to review, change or intensify strategies to increase traffic, generation, nurturing and conversion of leads into effective sales to not only guarantee but also increase revenue.
These are actions and decisions that can be taken safely, as there is a specific and real number provided by the sales forecast as a basis for strategies.
All of this translates into a consistent and secure company , with an efficient journey to remain competitive in the market and become the main reference in its segment.
If you liked this article, how about expanding your knowledge about sales actions and strategies by learning how to use these 7 conversion metrics to track your website's results . Now you know how numbers are true allies of business managers!