To be competitive in the medical sales industry, a leader must understand their most recent revenue trends at a granular level. Today, we’re going to dive into how you can use lever calculations to generate more revenue.  

Revenue is the total amount of income generated by the sale of an organization’s products or services. Revenue, also known as gross sales, is often called the top line because it sits at the top of the income statement.  

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Simply put, revenue is how much money we are generating from Sales. We need this information on an ongoing basis to know how well our company or salesperson performs against its benchmark or objectives. It also helps set realistic goals for short-term periods (quarterly) and long-term projections (annual). 

Lever Calculations is a term that many sales leaders are not familiar with. It's important to know the metrics that will help make educated decisions about what will quickly positively impact your sales efforts and results. Every business owner realizes they need to understand their most recent revenue trends at a granular level, but do they know how? The answer is yes if you use Lever Calculations. 

You can use these levers or metrics to understand your sales performance, make strategic decisions and plan for the future. Let’s take a closer look at some of them to understand what they mean and how you can leverage their insights when planning outgrowth strategies. 

  1. Conversion Rate

A conversion rate is a way to measure how successful your sales team is. You divide the number of times someone bought something by the number of times a lead or an opportunity was generated. 

This is just one aspect of the productivity of sales metrics, but if you know it is, you can begin to strategize new ways of improving your sales efforts and results.  

  1. Win Rate

How many demos were conducted before one sale was made is the Win Rate. If you sell one car for every four attempts, your win rate is 25%,  or one in four.  
Comparing the industry win rate average to your company’s average win rate will help you know if your sales and marketing efforts are succeeding or failing.  

A lower than desired win rate may signal in-depth research into your pricing, sales, or marketing strategies are needed. If your win rate is higher than the average, you may want to research your rates to determine what efforts, tactics, or practices are working, then improve on those to increase win rate and revenue even more.  

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  1. Sales Length

The time between beginning and ending efforts on a specific sale is the length of a sale.  

By knowing the duration required to win a sale, you will be able to more effectively create new sales and marketing strategies based on how long they take to execute.  

  1. Average Sales Price (ASP).

Average Sales Price is the average dollar amount per revenue-generating transaction 

Companies need to understand this to project revenue and track the health of their pipeline. If your company has a new revenue target of 800k and their average deal size is 4K, then they know they should aim for two hundred transactions. Based on their historical metrics, they can then back-calculate how many deals they need to have at each stage of their sales process (or funnel) and at what time. This allows them to forecast if they are on target or need to step up in a certain area of their funnel. 

Incoming reps want to know this because the rep wants to understand how many transactions, they will have to capture to make their quota. It gives an idea of the type of sales cycle a company has. Fewer but larger deals, like capital sales, take more time. Higher volume but lower deal sizes make for a more transactional sales cycle. 

  1. Customer Lifetime Value (LTV).

According to The Corporate Financial Institute, “The customer lifetime value (LTV), also known as lifetime value, is the total revenue a company expects to earn over the lifetime of their relationship with a single customer. The customer lifetime value calculation accounts for the customer acquisition costs, operating expenses, and costs to produce the goods or services that the company is manufacturing. Many companies tend to overlook the LTV metric, but the lifetime value of customers is essential to the growth of a company.” 

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Deconstruction Leads to Understanding  

A complete analysis of six months of revenue based on the above concepts will help you dictate the next 12 months of success.   

If you’re interested in learning about these concepts and growing your business, visit 


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