Increasing Sales
As explained by marketing guru Jay Abraham there are, fundamentally, only three ways to increase sales :-
** Find More Customers
** Sell More on Each Transaction
** Sell More Frequently to each Customer ( e.g. offer additional services or products )
We help ambitious business owners to take this concept into the heart of their business operations, by thinking differently to define sales growth strategies in a precise way and then take action to implement those sales growth strategies to consistently add extra profitable sales to annual turnover.
The following examples will give you some illustration of Jay’Abraham’s basic “ how to increase sales “ thinking.
Finding New Customers
There are a number of questions to be asked and answered under this heading
which include :-
How many lead generation sources do we already have in place ( should we have more ) and how effective is each of those sources in generating new customers ?
For each lead generation source ………can the conversion to sales percentage be improved ? which naturally leads to a further question………
Why do some leads not “ convert “ ?……….think :-
** How well targeted are lead generation activities
Is there an entry level/low cost offering available to make it easier for the prospect to commence a buying relationship with us
** To what extent should we incorporate “ referral selling “ into our activities on finding new customers
Lifetime value of a new customer
Let’s use an accountancy practice as an example………
Let’s say a typical annual accounts and tax fee for a small
company is £1,800 p.a.
AND
Let’s say labour cost is 50%, so annual gross profit per client is £900
AND
Let’s assume that a client stays with the C.A. practice for 6 years on average
So each new client on average produces 6 x £900 = £5.400 of additional/marginal profit over its lifetime with the C.A. practice.
NOW……….we can make some accurate decisions on investment for lead generation
e.g. A lead costs £100 to generate AND, on average, 1 in 9 converts……..so lead generation cost per new client is £900……….although that isn’t attractive compared to the first year’s profit from that new client; that £900 “ client acquisition cost “ compares very attractively to a “ lifetime value “ of the client of £5,400 additional/marginal profit.
Accordingly it is important to think deeply about the lifetime value of a client in order to decide how much to invest in lead generation activities.
Selling More and Selling More Frequently
After a customer buys what else do you have to offer to that customer ?
Let’s use a digital marketing agency to illustrate how a “ lot of money can be left on the table “ and the potential to achieve much more. :-
A digital marketing agency’s new client relationship might begin by building a website and then continue with the provision of SEO services………..note that these activities are focused on generating new customers for that client of the digital marketing agency.
Clearly, all clients of a digital marketing agency are eager to increase their sales so there is available to a digital marketing agency the potential to not just help their clients add new customers to their business but to identify ways to sell more and sell more often to existing customers of the digital marketing agency’s clients.
A digital marketing agency already has a business relationship established with its website build or SEO clients accordingly a digital marketing agency is potentially “ leaving a lot of money on the table “ if it doesn’t help its existing clients to find ways to :-
Sell more
AND
Sell more often
Getting in Touch
If you’re eager to grow your sales and want to find out more about how to
apply the above sales growth strategies in your business then we’d be delighted
to hear from you. To get in touch :-
Phone : 041 – 280 – 0404
OR
Email : jim@jwmbusinessadvice-accountancy.com