The Sales Formula

Is there a “magic formula” for sales? Not exactly…
However, sales operate much like an algorithm — a mechanism based partly on the law of probability and partly on understanding the customer’s psychology. In other words, there are specific principles which, when learned and applied correctly, can greatly increase our chances of success and improve both our sales performance and income.

Let’s look at this from the beginning:

Number of contacts × Closing ratio (%) = Number of sales/orders

In other words, to increase our sales (the number of orders), we need to expand both the number of contacts we make and the quality of communication with our customers, in order to improve our closing ratio.
For instance, if we talk to 5 customers a day, we should aim for 10 or 12. If a store receives 20 potential customers daily, it should seek to attract 50 or even 100.
So, at first, the issue is largely quantitative.

At a deeper level, however, the quality of interactions plays a decisive role.
It’s one thing to talk to 10 customers and close 8 sales (an 80% conversion rate) and quite another to have only a 10–20% success rate.

The Psychology of the Salesperson
To become more persuasive, we must first look at our own psychology.
Our mood — how we feel about our work, our company, and ourselves — directly affects our results.
Apathy and sadness don’t sell.
On the other hand, joy and enthusiasm are contagious; they excite the customer and make them more willing to buy.
Human emotions — both positive and negative — are highly contagious. That’s why gloomy or indifferent people rarely succeed in sales.

The Sales Technique
Sales technique comes next, and it’s equally crucial.
We must know how to start a conversation with a customer, how to make them feel comfortable and at ease before the selling process begins.
It’s also vital to discover what the customer has in mind — what they actually want to buy — through the right exploratory questions.
A common mistake in sales is trying to sell what we think the customer needs instead of what they truly desire.
And the words “need” and “want” represent two completely different motivations.

Presenting the Product
The product presentation should be attractive, clear, and engaging.
Flat, rushed, or uninspired presentations simply don’t sell.
We need to clearly explain what the product is, who makes it, what its features are, and most importantly — why the customer should prefer it.
If we can’t answer that question ourselves, neither will the customer — and they won’t buy.

Handling Objections and Closing the Sale
Next, we must listen to and respect the customer’s objections.
We respond politely, confidently, and with convincing arguments — and, of course, we don’t let the sale “slip through our fingers.”
It’s also important to introduce the customer to complementary products that go along with what they’ve purchased.
For example: “To go with your grilled dish, may I recommend a fine wine that perfectly matches your chosen flavors?”
This way, we add to our sales formula the average order value, increasing the total sales per customer.

Sales revenue = Number of contacts × Closing ratio × Average order value

After-Sales Service and Long-Term Relationships
Our goal isn’t just to make a sale — it’s to keep the customer satisfied and loyal.
We want repeat business and referrals, constantly expanding our client base and growing our turnover.
This is achieved through after-sales service.
Unfortunately, many businesses and salespeople forget about the customer once the sale is completed.
They never call to ask:
“Mr. Johnson, how are things going with our product? Is everything okay? Do you need any assistance?”
When customers feel neglected, they may experience what marketing calls post-purchase dissatisfaction — though most won’t express it unless there’s a serious issue.

The secret is simple:
If we call the customer after the purchase, that’s service.
If they call us first, it’s a complaint — and complaints are always harder to handle than to prevent. They can also damage the company’s image.

​The Lifetime Value of a Customer
Therefore, we can expand our formula to include the customer’s lifetime value (CLTV):

Customer lifetime value = Single transaction value × Number of repeat purchases

A customer who spends €1,000 per year may generate €5,000–€10,000 over five years.
And if we also consider the potential sales generated through referrals, we can fully understand the importance of customer service and building long-term trust relationships.