Why (and How) You Should Measure Activity, Not Revenue


Why (and How) You Should Measure Activity, Not Revenue

While sales and revenue are important, it’s going to be your activity that truly defines your success or failure. But, how do you track and measure your activity? How do you ensure you see results? One option is the activity points system.

 

Years ago, I heard of the activity points system from fellow members of the Million Dollar Round Table. Many had used this system to establish successful habits, and they continued using it to reach their goals.

 

Here’s how it works: Activities are assigned a points value, and your goal is to reach 20 points every day. Once you reach 20 points, you don’t have to make another cold call, schedule another client meeting or do anything else, really. When you do this, you can walk away from the office feeling good about the day, regardless of whether you made any sales.

 

Points values should be based on key performance indicators, i.e., activities that have a higher impact on revenue should be assigned a higher value. Here’s an example:

  • 1 point for picking up the phone to make an outbound call
  • 2 points for reaching the intended target
  • 3 points for scheduling an opening interview with a prospective client
  • 5 points for completing any client meeting
  • 7 points for a meeting that resulted in asking for a sale
  • 10 points for engaging a new client, regardless of sale
  • 20 points for making a new engagement that meets your daily revenue goal

 

Whenever I concentrated on the activity point system, I found that my pending sales increased and, eventually, my pending sales turned into paid business, which resulted in reaching my financial goals. The points took off the pressure to “sell” or meet daily/weekly financial goals. By focusing on activity, the results would always follow.

 

Additionally, I found the activity points system to be extremely helpful for several reasons:

  1. It forced me to focus on activities that generated sales, even when I didn’t feel like doing the hard things
  2. When I hit 20 points consistently every day, my sales didn’t see slumps
  3. When I didn’t hit 20 points consistently, I could pinpoint future revenue dips and plan accordingly
  4. My work/life balance improved because I felt good when I left the office, even without engaging a new client or relationship

 

Think about implementing your own point system. By focusing on activity, you will find that your client engagement is more consistent and profitable. It will help you maximize your time spent on the key performance indicators that drive your business.

 

Winning Strategy

Translate your important key performance indicators into an activity points system. This allows you to focus on activity, not revenue.

 

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About the Author

Mike McGlothlin is a team leader, retirement industry activist and disciple of Indiana Hoosier basketball. In addition to being EVP of retirement at Ash Brokerage, he is a sought-after writer and speaker. His web series, “Winning Strategies,” provides insight and motivation for financial advisors in many forms – blogs, books, videos, podcasts and more. His latest book, “Free Throw for Financial Professionals,” will be available in October.