Tag: grow sales-revenue

Do your sales results look like a roller coaster? High spikes followed by steep declines? Here are five ways to avoid peaks and valleys for better sales results.

Set Goals — Without clearly defined goals, you will achieve very little. Since your sales success directly impacts your personal income, this is always a good place to start. Ask yourself how much you want to earn – then how much you need to sell to achieve this income.

Don’t stop with sales or revenue goals. Since results come from taking action, set some activity goals — how many calls, meetings, proposals, events do you need to achieve your sales objectives? Break them down into daily, weekly or monthly goals as appropriate – and focus!

Be a Prospector — While your website, advertising and other marketing efforts will send leads your way, you must be willing to generate some of your own – by prospecting. Put a system in place to regularly find new customers through referrals, networking, social media, past customers, etc. Build and maintain your database – your pipeline of current and future opportunities. Don’t wait for leads to come to you – go get them!

Qualify Before You Invest — Qualifying prospective customers is crucial to managing your time and getting more from your efforts. We have all had situations where we invested a lot of time and other resources trying to sell to someone who will never buy, for whatever reason.

Your success here starts with being clear on your ideal targets — those who need and value what you sell and have the ability or authority to buy now or in the future. Without clarity, every prospect looks like an opportunity.  Be clear on what you want, screen out what you don’t and watch your sales improve. Do you have 4-5 good questions to help qualify customers? You should.

Use a Sales System — People buy from those they know and trust, so building relationships is an important part of sales. But relationship building in business and in life takes time. For most people, it won’t happen with a five-minute phone call or a brief conversation at an event.

A system is the best way to ensure a consistent approach to nurture leads and build relationships – from the initial point of contact to the eventual sale. Depending on the business, it may take a week or months, a few contacts or a lot of them. Use your past experience to select what works best for you, then be consistent. Stay connected and choose methods that appeal to your targets. I recommend a combination of methods, including phone, email, mail or social media. Linked In is a must for sales professionals – so make it part of your sales system.

Follow up — Follow up is a key to converting more prospects to customers AND getting customers to buy more. So why do so many salespeople fail to do this or give up after one or two attempts? When you consider that most sales are made after seven or more contacts, the gap is obvious. No need to hound prospects. Just follow-up until you get a decision – yes or no. Be relentless with your follow-up and your sales will improve.

Follow-up is not just for prospects.  Incorporate a system for customers too! It is the first step to the next sale or referral. Whether you mail a thank you card note, call to determine satisfaction with a recent transaction,  or provide them with a token gift, your follow-up after the sale can pay big dividends.

Sales don’t just happen, they require effort, persistence, and consistency. So try integrating or improving these five elements into your sales efforts and get off the sales roller coaster.

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My website is giving me too many online leads! Not a problem if you have an e-commerce business where customers buy direct and fulfillment happens with no interaction. But what if you have a service business that requires phone calls or quotes to build relationships or close the sale?

This is the problem recently raised by a local business owner after upgrading his website. Within a few months, the number of calls and emails exploded. That’s the good news. But they were not responding to them in a timely manner. That’s the bad news. In the short-term, this hurts your sales conversion rate.  In the long-term, it may damage your reputation for dependability and responsiveness.

How To Avoid Disappointing Customers

First, remember that your business systems need to change as your business grows. If you expect growth from a new or improved strategy (and you should), keep this in mind and prepare for it. In his case, the procedure for handling online leads worked when they trickled in, but did not when the volume more than quadrupled.

Next, use technology, anticipate issues and simplify what you do. Here’ are a few things we did to demonstrate this point:

Avoid vague contact forms. You need their name, phone number, and email address.  Most website contact forms use a comment box to gather more information. They often leave you wondering what action the prospect wants you to take. Do they want you to call or email the information? Add a ‘How can we help you’ section and list the specific options.

Screen leads. Add one or two specific questions to your contact form to help you screen and prioritize. Make them simple and don’t over-do it. Those that are truly seeking your service will typically take the time to answer them; tire kickers may not.

Make quote process efficient. If someone wants a quote, take them to a separate form and gather most (or all) of the relevant information. Having information before you call makes it more productive. So you can spend time asking great questions – the kind that can help you convert prospects to customers down the road!

Make auto-responders count. Most websites have a default confirmation message that goes out when people send a contact form email. Customize yours to begin educating customers on the benefits you provide, why you are unique, and expectations on return calls. Remember, this is the first direct communication from you.  Make it count.

Use templates. What are the top 5-7 requests, questions or issues you receive via your contact forms? Develop email responses that address them and use them consistently. Whether you use an auto-responder software program or manually cut and paste, they will save you time and customers will receive consistent concise information.

Publish FAQ on your website. These provide a simple, easy way to answer common questions prospects have about your products or services in a well-thought-out way. They can help reduce non-essential emails or calls leaving you more time to focus on the important ones. Most businesses have some of these for customer service reps or receptionists to use. Clean them up and put them on your website.

Bonus From Publishing FAQ’s

Here is a bonus you get when you publish frequently asked questions.  It gives you the chance to include questions you WISH customers would ask, but often don’t because they don’t know they should. I’m sure you have a few in mind! Use them to reinforce your uniqueness, value, and benefits. In a question and answer format, they sound less promotional! Take advantage of it.

If you are struggling to convert online leads – whether you get a lot or a little – take a look at the entire process. Is it efficient and effective? Does it save you time and money? Is it convenient and responsive to prospects? Then get to work and make some changes.

New Monthly Article & Business Tools

For new business improvement articles, exclusive tools and insights on entrepreneurship, click here to subscribe to my monthly eNewsletter. When you do, I’ll also send you my free eBook, How to Build Profit Through Leverage.

When sales and profit decline, business owners react in various ways. Some look to cut expenses while others look to get more sales and customers by investing in advertising and other lead generation strategies.

Controlling expenses is important whether profit is up or down. But cost cutting is typically a short-term fix.  You can only cut so much and still have a business. While a business requires a steady flow of leads to sustain growth and replace lost customers, lead generation strategies are typically the most costly methods to grow revenue.

So what should you do? Before you invest time and money generating new leads, know and understand the other factors that drive your revenue: sales conversion rate, the number of transactions and average dollar sale.

For many small businesses, these are untapped profit opportunities. They offer a lot of room for improvement at substantially lower costs!

Sales Conversion – Your Efficiency Measure

Sales conversion rate is simply how many leads you or your sales team convert to paying customers. Think of it as an efficiency measure for sales. What is your sales conversion rate? If you don’t know, track it. After all, leads that are not converted to sales are a waste of time and money!

Tips to Improve Your Sales Conversion Rates

• Define your ideal customers and understand what is important to them. Without clear targets, every lead looks like a great opportunity.

• Recognize your company’s strengths and weaknesses. Be honest with yourself. What do you do well from the customers’ perspective and profitably? If you are not sure, ask your ideal customers. Then focus on prospects that NEED what you do well and be willing to let go of the others.

• Differentiate yourself with a guarantee. If you consistently deliver critical benefits for your target customers, a guarantee is a great way to reduce the buyer’s perceived risk, overcome obstacles and convert sales. The key to an effective guarantee – make sure your delivery is consistent and make sure it is relevant or important to your target market.

• Create a sales management system – a consistent approach you use for every lead. Know the key points of contacts and where prospects are in your sales funnel.

• Know why customers buy. What benefits do your customers get when purchasing your products or services? Ensure sales messages and discussions communicate this. Prospects may ask about features, but they buy benefits.

• Set sales and milestone goals and track them. Key events in the sales cycle, such as face-to-face meetings or requests for quotes, are indicators of progress. Tracking tells you where prospects fall off so you can improve your sales system. Remember, what you measure, you can manage and improve.

How Much & How Often Measures

The number of transactions relates to frequency – how many times your customers purchase from you over a specific time period, typically one year. The average dollar sale represents how much customers spend each time they do purchase. What would your bottom line look like if your customers made one additional purchase each year or bought one more product or service when they purchased from you?

For most owners, the answer is ‘substantially better than it does right now’. Small improvements in these areas can increase revenue or sales without acquiring new customers. Tap into your existing customer base and watch your profits grow.

Ways to Increase Transactions and Average Dollar Sale

• Develop or maintain your customer database so you can keep in touch or quickly respond to sales opportunities. Think email, mail and phone so you capture the relevant information.

• Stay connected with your customers by phone, mail, email or through social media. While the frequency may vary based on the type of business, every customer should receive a ‘touch’ at least once per quarter.

• Make valuable customers feel more appreciated than non-customers or prospects. While new customers are critical to growth, make sure current customers get some VIP treatment. Programs, offers or specials just for current customers work well.

• Look for opportunities to sell multiple products or services. Educate customers on the range of services you offer, create checklists of typical add-on offerings for key products or services, bundle or package products and services, implement sales scripts, free trials, or special offers on additional services with their primary purchase.

• Train your team in sales and service. Wow your customers with consistent delivery so you create raving fans who spend more and buy more often!

On a final note, know the numbers! If you want to improve sales conversion, the number of transactions or your average dollar sale then track it, set goals, implement a strategy and celebrate your teams’ success. Your bottom line will thank you!

Ready to Put Your Business on the Path to Success?

Would working with a business coach help you take your business to a whole new level? Then let’s explore the possibilities with a complimentary consultation. It’s a chance to get to know each other, discuss your goals and the obstacles that hold you back. Together we can determine if there is a good fit between your needs and my services.

To learn more or schedule an appointment, call me at (856) 533-2344 or drop me an email Joan@HybridBizAdvisors.com

What are you doing to grow your revenue or sales year after year?  If you are like most businesses, your resources are going to attract new customers.  But what about your current customers, those that already know and like you?

What if you took just 5% of your marketing budget and dedicated it to grow sales to past or current customers?  How much more income could you generate?  Whether you sell to other businesses or consumers, don’t overlook this golden opportunity.

3 Ways To Capture More of Their Budget

Up-Sell:  Upgrading customers to premium products or services is a simple way to grow sales. Premium products or services deliver more perceived value and command higher prices than standard offerings.  So take a look at your current line-up.  What can you do to beef them up with more features, special treatment options, extended warranties, higher service levels, faster delivery, etc?  Think good, better, best.  Once you have them, start promoting them!

Cross-Sell:  Think complimentary products or services.  Things that logically go together or are natural fits. Window washing with house cleaning, desert or wine with dinner, brushes and tarps with paint, and bookkeeping or payroll with accounting services are just a few examples.   Whether you bundle or package them or leave them as a stand-alone option, these products or services offer customer convenience and incremental profit opportunities for you.  And they can be delivered directly by you or seamlessly through a third party.  The key here is to ask. So get creative and partner up if necessary to take advantage of these opportunities.

Re-Sell:  Get customers to buy again and again.  Some businesses, by their very nature, have recurring customer opportunities.  Dance studios, cleaning services, and lawn care companies come to mind.  However, most companies need to create repeat business.

Quality and convenience when it comes to service, product line, payment options and hours of operation certainly go a long way to keep them coming back.  But making them feel appreciated and staying connected is vitally important.  From birthday cards and punch-cards to customer-only offers, participation in surveys or research groups and volume incentives, these are all simple ways to stay connected and show you care.  Whether you do so via phone, mail, email or social media, make sure your customers know you value their business and reward them for their loyalty.  It will go a long way.

When the weather heats up, does your business cool down? Fewer calls, proposals, meetings, and events? With more people on vacation and kids out of school, some drop-off in activities that drive your business may occur.  But the summer sales slump is less related to summer — and more related to your activities and expectations.

It’s easy to listen to and believe others in similar industries when they say things like “it’s hard to get new business during the summer” or “sales really drop off in July and August” or “marketing in the summer is a waste of time and money”.

When I started my business many years ago, I heard the same thing from others who were far more experienced than me. And I believed them. So I cut back on many of the activities that produce quality clients. And I got exactly what I expected – no new clients from June-August. I didn’t make that mistake again. The following year, I made a few minor tweaks but kept doing what I was doing the other 9 months. And I got new clients in the summer – some really good ones!

Fewer Leads, More Sales

Here is what I learned.  While fewer people called me, the ones that did were more serious about getting the help they needed to improve their business. So I converted more of those prospects to paying clients. Fewer leads, but more sales! I’ve seen this play out again and again in my business and with my clients. We expect new business in the summer – we take action – and we get results. With different expectations, you can too.

So as you head into the summer, take some time to set priorities and activities for the next three months. Include some marketing and sales ‘stuff’ on your to-do list. If you already have consistent activities to generate leads and have extra time, use the summer to work on other areas of your business.

Summer Projects To Improve Your Business

• How can you serve your customers better?  Come up with one or two things you can start doing now.
• What is the biggest complaint you get from customers? Work on a system to improve or eliminate the problem.  Remember, think solution, not band-aid!
• Change often comes from getting your team engaged.  Pick one project for the team to work on together — to address a challenge or problem.
• When was the last time you reviewed the procedures you have in place?  Pick a few and start looking for ways to make them more efficient and effective.  Not sure which ones need attention — as your team, they know where the problems are!  Never took the time to document procedures?  Now is a great time to start!
• Are all your eggs in one basket as it relates to vendors or suppliers?  Now is a good time to start exploring additional options — before a problem arises.

Get the most out of the summer. Think sales. Think productivity. Think profit. Then get to work to make it happen.

How Do You Measure Up?

For a comprehensive checklist to help you identify more hidden opportunities in your small business, check out my Business Success Checklist.  It’s a great tool to help you assess progress and prioritize what needs to be done — all year round.

When you want to grow revenue, many small business owners are surprised when I say that there are only four ways to increase sales in your business. Sure there are hundreds of tactics or methods you can implement – but they all support these four basic strategies:

Get more customers … in current or new markets

Get customers to spend more … increase average transaction

Get customers to buy more often … increase frequency

Get customers to stay longer … customer retention

So before you start selecting the techniques to grow revenue, be clear on what you want to accomplish. It keeps you focused on the desired outcome and makes it easier to choose the right tactics to get there.

4 Strategies To Grow Revenue

Get More Customers.

This is the most obvious and common approach when it comes to growing sales. It is also the most expensive method in terms of both time and money. As a result, I typically recommend that my small business clients maximize the other three areas before focusing their resources here. You can get more customers with existing offers to new targets or new offers to existing targets. The key to success comes from matching the offer with the needs of the target and communicating it in a way that is compelling to them!

Get Customers to Spend More.

Often overlooked, this is one of the easiest ways to grow revenue. If you could increase every transaction by just 5%, what would that mean to your business? So how can you do this? Raising prices is certainly one option, but you can also promote premium products, upsell or cross-sell complimentary products or services or expand payment options or plans.

Get Customers to Buy More Often.

It’s not enough for customers to buy, you want them to buy again and again. So you need to keep them coming back. You need to stay connected and give them a reason to do so. Maintain a customer database and use it to promote customer only offers via mail, email or text. Start a monthly continuity program or newsletter. Use a reminder system. Develop followers on social media and promote special offers to them. Educate customers on your full range of products (don’t assume they know).

Get Customers to Stay Longer.

If your new business simply replaces lost customers, you gain nothing. Keep the customers you have. It costs 6 – 7 times more to get new ones. Plus existing customers tend to be more loyal and less price sensitive. If you could keep every customer for an additional month or year, how much revenue would that represent to your business?

The key to retention is simple.  To quote one of my clients, deliver what you promise and then some! Here are a few techniques to consider: thank you or bonus gift with new or first purchase, send birthday and holiday cards, follow-up call after purchase or job completion, ask for testimonials, recognize customers in newsletters, blogs or social media, and give ‘free’ information or advice.

More Ways to Grow Your Business

For new business improvement articles, exclusive tools and insights on entrepreneurship, click here to subscribe to my monthly eNewsletter. When you do, I’ll also send you my free eBook, How to Build Profit Through Leverage.