Sales target keeping you awake? Split it into two numbers

In short: one big revenue figure mostly creates anxiety. Split it into two numbers, number of sales and average sale value, and you can see exactly where the gap is. Pressure turns into specific actions.

Revenue = number of sales × average sale value

Compare both numbers with last month and you will know whether you missed target because too few customers bought or because each sale was too small. The fix is completely different:

• Too few sales: reach one more new customer, or bring a regular back.
• Value too low: help customers choose the option that suits them better, or add something they genuinely need.

For staff: when the target feels impossible

1. Ask your manager: "What would you suggest for reaching this target?" Nobody sets a number without a reason, and their thinking often gives you ideas.
2. Break it down: a monthly figure split into weekly and daily sales looks far less frightening.
3. See selling as solving problems: when you solve a customer's problem, a sale brings satisfaction instead of stress.

For owners: when setting targets

• Give the target as two numbers, not one total
• Review the numbers with staff every month and agree next steps, instead of asking "why didn't you make it?" at month end
• Find who is doing well and have them share how

Pressure comes from not seeing clearly. Split the numbers and the path becomes clear.

Adapted from Dave Tan's book How High Should Your Customer Retention Rate Be? (2014, in Chinese), updated for today. About the book

Author: Dr. Dave Tan, DBA — Founder of Vital Design, Doctor of Business Administration (DBA). A business consultant to salons and SMEs since 2003, and author of a book on salon management.