The Mathematics of Selling

Demand Forecasting , Target Setting and Deadlines in Sales follows a mathematics which is fully backed by a scientific logic. Let us look at the following calculations to understand this phenomenon better:

Planning before the month

  1. Total target for the month of August,2016 (for example) Rs. 1,00,000
  2. Average Ticket Size (ATS) of business (for example) Rs. 1,000
  3. Total no of customers required to complete the target 100
  4. Hit Ratio of the sales person / sales team 20:1
  5. Total no of sales calls required to be done in the month (100 X 20) 2000
  6. No of working days in the month to be able to make 2000 calls 26
  7. Min No of Calls / day (MNOC) (2000 / 26) 77

Ongoing review during the month on 10th August (for example)

  1. Today’s sale (No of customers) 0
  2. Month Till Date (M.T.D.) sales (No of customers) 31
  3. Balance target (No of customers) (77 – 31) 46
  4. No of days left in the month on 10th August(for example) 20
  5. Required Run Rate (RRR) for no of customers to be made (46/20) 2
  6. RRR for no of calls to be made per day ( Incremental MNOC/day) 2 X Hit Ratio 4


Any sales team which will follow this mathematics can never be at a loss to analyse as to how their sales targets are not being met.

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