Let’s have a look at how the small numbers can add up.
I have listed below nine key parts to your sales process:
Let’s set the objective of improving each of these by a very small increase of just 5% and see what happens:
1) + 5% increase in leads
A lead = identifying and approaching a person or business that has an interest in your product or service and the authority to purchase it.
There are literally tons of ways to get 5% more leads and sales appointments, including advertising, signage, directly targeting a specific group with letters or emails, website, cold calling, etc. Just improving existing strategies or adding new sources will quickly improve your numbers.
2) + 5% increase in conversions
Improve your conversion of inquiries to sales. The best way to do this is to improve the abilities of you and your sales staff. This could mean completing sales courses, gaining a better understanding of the features and benefits of your products/services, and better understanding your best customers and why they use you (ask them - you will be surprised what some of them say).
Becoming armed with more skills and a better understanding of your customers will definitely increase your conversions by at least 5%.
3) + 5% increase in average dollar sale
Obviously, if you can sell more on average to each customer, sales increase automatically. It may be as simple as offering them something extra. Make sure you always bring out the dessert menu!
You can do much in this area to bump up your sales - including increasing prices, up selling, and cross selling, just to name a few.
4) + 5% increase in customer visits
Getting customers to buy more often is a very easy way to increase business. Of course it depends on what you are selling as to how many more times you can get your customer to buy.
If on average a customer buys from you 4 times per year – think of ways to get that average up to 4.2 times per year.
Even if you are selling big ticket items, think long term. If you are selling houses, remember that on average a home owner will buy 5-6 in their lifetime. Stay in touch, and your customer will think of you next time they want to buy.
5) + 5% increase in products and services sold
Options to get your 5% increase here are endless and include selling more items, larger quantities, adding other products or services to your range, targeting products not previously brought by that customer, and many others.
6) + 5% increase in client retention
Client retention is about keeping your customers for longer. It does not matter what business you are in, there are plenty of competition doing everything they can to take your customers. In some cases they will be successful.
To stop customer attrition, you might consider putting in place a loyalty program for your business. “Buy 10 coffees, get the 11th free” may seem dull but it works. Yet very few businesses actually do use this simple way to keep customers coming back.
7) + 5% increase in follow up
Follow up old quotes and customers on your database that didn’t buy. Engage their interest - get your prospect to look further into your product or service. Think of innovative ways to stay in touch with them such as sending further information, free samples, newsletters, or a phone call to talk with your prospect about their needs.
Remember not everyone is ready to buy now, some will just be researching or it is not quite the right time. Some will buy later on – so make sure they buy from you by continuing to remind them that you are the best choice.
8) + 5% increase in referrals
Most businesses rely on word of mouth as a way to attain a portion of new customers. However word of mouth is quite unreliable and hard to predict as the circumstances often need to be just right for a referral to result.
You can get more referrals by actively encouraging your customers to give referrals with the right system and incentives.
9) + 5% increase in reactivation of previous customers
Every company has a list of customers who previously brought but for whatever reason are no longer buying from you. Re-approaching these old customers can be a goldmine for new business.
So we have covered nine areas of your sales process and looked at simple ways of optimising each area by 5%.
So let’s have a look at the numbers:
9 improvements x 5% each 45%
Increase in sales $450,000
Total sales $1,450,000 – a whopping 45% more sales.
So you see, small numbers can make a big difference to your sales. With a little focus and consistency in each of these areas you can make a massive difference to your sales and profits.
Time is limited and it is important to do each one well to get the best results. Pick one strategy per month to work on. In nine months you will have a minimum of 45% more sales than you had before. Not bad for a few small changes.
By the way, you will find that at least one of these strategies will give a lot more than 5% increase. It is quite possible that one of these could give you 30%, 40% or even 50% increase. So go for it now and get your business flying.
One more thing, to get the real benefit from these strategies it is important to make each one into a system that everyone follows. Make sure you clue your staff in and make it a team effort!
This process is simple – but most do not follow through. A year later they are no further ahead. Don’t be one of those - start now and take some action – there is no better time than now.