What Is Drop Size - and Why It Moves Revenue More Than Visit Count

Drop size is the average value of one order taken on a sales call. It is also called average order value or average bill value, and it tells a sales director something visit counts cannot: how much each productive call is actually worth. Two reps with the same number of orders can deliver very different revenue, and drop size is usually the reason.

What drop size measures

Drop size looks only at calls that produced an order. It ignores visits that ended without one, which is what makes it different from conversion metrics. It answers one question: when an outlet does buy, how much does it buy?

How to calculate drop size

Use the same period and scope for both numbers, and take order value at the same price point every time, either invoice value or value before scheme discounts.

Why drop size matters in field sales

A rep's working day has a fixed number of calls in it. Adding outlets to a beat costs travel time and often lowers call quality. Raising the value of each order costs neither. A modest rise in drop size across a whole field force adds revenue without changing the beat plan or the headcount.

Drop size also affects cost to serve. Every order has a fixed handling cost at the distributor: picking, invoicing, a delivery stop. A larger drop spreads that cost over more value, which is why distributors care about it as much as the brand does. Small, frequent drops are one of the quieter drivers of high cost per call.

What drives drop size

Lines per call. The number of distinct SKUs on each order; see what lines per call measures. A rep who writes three lines where the outlet could take seven is leaving value behind. Order entry that shows the outlet's usual SKUs and current gaps makes it easier to add lines; see how SFA handles multi-SKU orders.

Premium SKU uptake. The share of orders that include at least one higher-priced SKU. It lifts value per order without needing more units.

Scheme-linked orders. The average value of orders placed under an active trade scheme, compared with orders placed without one. If scheme orders are not larger, the scheme is discounting volume the outlet would have bought anyway.

Order-size consistency. How much an outlet's order value swings from one visit to the next. A stable drop size makes distributor stock planning easier. Sharp dips at an outlet that normally orders steadily are an early sign of a competitor, a stock problem or a missed scheme.

Drop size vs strike rate

Strike rate is the share of visits that produce an order. Drop size is the value of those orders. The two often pull against each other. A rep pushed hard on strike rate may take small token orders just to log a productive call, which raises strike rate and lowers drop size. A rep pushed only on drop size may skip small outlets that would have bought a few lines. Read the two together: revenue per visit is roughly strike rate multiplied by drop size, so a gain in one that comes from a loss in the other does not help.

How SFA software tracks drop size

Every order captured on a call already carries its value, line count, SKUs and any scheme applied. A well-configured SFA system rolls that up by rep, beat, outlet tier and territory during the week rather than at month-end. The most useful view is each outlet's drop size against its own past average, so a rep sees before the call which stores are ordering below normal.

For the practical steps to raise it, see increasing average order value.