Looking at your monthly, weekly or annual reports give you heartburn? Ever wonder how to increase revenue or better yet know exactly how many prospects it takes to land a sale?
Recently I spoke to a Business Owner who became frustrated because their sales were not where they are suppose to be. The Business Owner hired sales training, bought software all under the guise that these will “increase business”. Did it? NO
So when I spoke with the Owner I ask a few very simple questions:
- How many prospects does it take to make one sale?
- What is the average size of that sale?
The owner did not have that data and was skeptical as to why it was needed. When challenged I simply responded. Well if your marketing spend and efforts generate 100 prospects and you KNOW 100 prospects will land you 20 customers who buy on average $1,000 per how would that impact your decisions on marketing? The sales Process? Your sales team? and your projections on income?
You see if this business owner knew 20% of their prospects become customers who spend $1,000 each then $20,000 revenue will be coming every time the business generates 100 prospects. What should this business owner focus on if the goal is to increase sales?
Yes two areas:
- Marketing to generate more than 100 prospects
- Improve the quality of the sales process (meaning try to increase rate from 20% to 25%)
The former is easier, quicker and simpler. The later is what you work on while you are already working on former.
So going back to the beginning. How much more power, clarity, focus and drive would this business owner have on increasing sales if they KNEW THE NUMBERS?
Do you know your numbers? Can you clearly identify how many prospects it takes to land a sale? Key Results and Key Performance indicators are a Business Owners friend.
Have a great weekend.