Verizon: Performance Strategy
Problem-Solving in Action
Problem:
As an independent contractor for a Verizon Wireless authorized dealer, my role was to generate sales in a commission-only environment where compensation was influenced by various factors, including split commissions on shared shifts and competitive performance metrics. The challenge was twofold: I needed to maximize my earnings while maintaining a high ranking within the organization. However, commissions were split when working scheduled shifts, and failing to meet quota could limit future opportunities to choose prime shift locations and times. Balancing scheduled shifts with personally driven customer appointments was essential, but planning was needed to reach quota consistently and optimize earnings.
Solution:
I developed a targeted sales strategy using data analysis and goal-setting to maximize my productivity and commission. By analyzing key sales metrics (like total sales, commission per sale, and average close ratios) and comparing them to foot traffic (door swings) at different retail locations, I could identify the most effective ways to meet or exceed my quotas. My approach combined a mix of working scheduled shifts and generating additional sales through self-sourced leads outside the store. This strategy enabled me to meet quota requirements with fewer shifts and maintain control over my ranking and sales funnel, ultimately leading to increased productivity and commission.
Data Analysis Project:
Collected and focused on the key metrics that impacted sales performance, earnings, and overall ranking within the organization:
- Total Sales Transactions: The number of individual sales completed within a given timeframe.
- Average Commission per Sale: The average amount earned per sale, providing insight into the quality of each sale and pricing effectiveness.
- Sales Quota: The minimum number of sales or commission amount required to maintain eligibility for shift selection.
- Close-to-Won Ratio: The percentage of leads that successfully converted into sales, indicating sales effectiveness.
- Door Swings (Customer Foot Traffic): The number of walk-in customers at each retail location, influencing lead opportunities and sales potential.
Analyzed data specific to each store location to identify trends in customer traffic, conversion rates, and average earnings per sale:
- Customer Foot Traffic: Evaluated door swings at each store location to find locations with higher potential for sales volume.
- Average Sales Volume by Location: Determined which locations had a higher average number of completed transactions.
- Commission Trends by Location: Calculated the average commission per sale per location to identify locations with potentially higher value transactions.
Determined the number of sales and revenue needed to meet the quota. Based on historical data, calculated:
- Minimum Sales Required: The number of sales needed to hit the sales quota threshold.
- Projected Earnings per Sale: Average commission expected per sale to reach the desired total earnings.
- Lead Generation Requirement: Used the close-to-won ratio to calculate how many leads needed to be generated both within the store and independently to meet quota.
Compared the effectiveness of working scheduled shifts versus generating self-sourced appointments outside of scheduled hours:
- Shift-Based Sales Analysis: Reviewed past shifts to assess the average earnings per shift and how frequently quotas were met.
- Self-Sourced Lead Analysis: Calculated the conversion rate and earnings from self-sourced appointments to understand their potential for revenue generation relative to in-store shifts.
- Shift Cost Analysis: Considered that each scheduled shift involved a 50% commission split among other contractors, reducing individual earnings from shared sales.
Used insights from my analysis to design a balanced approach:
- Location Selection: Prioritized shifts at high-traffic locations or those with better average commission rates.
- Shift Reduction: Focused on reducing the number of scheduled shifts, supplementing with self-sourced leads to meet or exceed sales quotas.
- Time Allocation: Invested more time in lead generation activities outside the store to secure higher-margin appointments.
Regularly review performance metrics to adapt the strategy based on:
- Changes in Customer Traffic Patterns: Adjust shift choices based on any shifts in location foot traffic trends.
- Personal Sales Metrics: Track changes in close-to-won ratios, commission per sale, and total sales to refine self-sourced sales efforts.
- Ranking and Quota Achievement: Ensure that sales performance consistently meets the threshold to maintain shift selection eligibility.