sales increase

Question

Currently, the team makes an average of 44 calls per day, and gets a sale on 14% of them. Based on your analysis, the client sets an internal benchmark of making 55 calls per day and converting on 16% of them. If all team members hit this benchmark, how much will sales increase? (Ans: 43%),

How do you get this answer?

Answer 1

Hi there,

I love Agrim's answer as it shows you how you have to setup this problem yourself!

For most problems in cases, a table is a fantastic way to organize things.

Just so you're able to do this next time, take the following approach:

Think first: “What am I trying to solve for”?

Then, figure out the high-level formula. As in, what major components need to be setup.

Finally, fill in that high-level thinking with the actual numbers you have and solve for the missing piece!

Answer 2

Hi there,

This is indeed an interesting, very specific question, so I am happy to provide my perspective on it:

Generally speaking, you simply need to take the additional number of leads into context with the current number of leads.
At the moment, each employee does 44 * 14% = 6.16 leads per day. In the future, each employee will do 55 * 16% = 8.8 leads per day. Simply take the difference of 8.8 - 6.16 = 2.64 leads per day and put it into context to the current number of leads: 2.64 / 6.16 = 43%.

In case you want a more detailed discussion on the whole case study and what the ideal approach would be, please feel free to contact me directly.

I hope this helps,

Hagen

Answer 3

Sales increase = Additional Sales / Initial Sales

= (55*16% - 44*14%) / (44*14%)

= (55*16%) / (44*14%) - 1 = 8.8 / 6.16 - 1 = 43%

Answer 4

Hi!

Post your solution or how you would structure this problem.

I'll be happy to give you some tips on how to get to the solution by yourself!

Best,

Anto