Description: Some salespeople can convince nearly every customer to make a purchase, while others are far less efficient at converting initial customer contacts into sales. This capability, known as the pull-through rate, is critical for managers who want to increase the sales efficiency of their salespeople, either through the elimination of poor performers or through ongoing sales training.
Formula: Divide the number of customer orders placed by the number of initial customer contacts. It is most effective to measure by individual salesperson or geographic sales location. The formula follows:
Number of customers placing an order
Number of customers with whom contact was initially made
Example: The Fifth National Bank’s customer service staff is paid a bonus whenever they sign up a caller for additional banking services. To measure the effectiveness of this program, the call center’s manager uses call management software to track the number of incoming calls, as well as the number of service orders related to those calls. In early June, the bank initiated a sales training program for the call center’s staff. Measurement of the pull-through rate during this period yielded the following results:
Month |
Orders Placed |
Initial Customer Contacts |
Pull-Through Rate |
April |
503 |
2,960 |
17% |
May |
618 |
3,250 |
19% |
June |
821 |
3,040 |
27% |
July |
807 |
3,510 |
23% |
The pull-through measurement indicates that the sales training program had a noticeable positive impact on sales, but the subsequent performance decline in July indicates that further training or some other form of follow-up with the call center staff might be appropriate.
Cautions: This measure is best used in call center environments, because it is easiest to track customers calling in to initiate the buying process, as well as actual orders achieved as a result of those calls. It is less effective in unstructured environments (for example, a retail store) where there is no easy way to record the initial customer contact in a database.