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 GROWING YOUR BUSINESS THE SMART WAY 3 specific ways to do it.

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Presentation on theme: " GROWING YOUR BUSINESS THE SMART WAY 3 specific ways to do it."— Presentation transcript:

1  GROWING YOUR BUSINESS THE SMART WAY 3 specific ways to do it

2 Three Ways to Increase Your Sales and Grow Your Business  Increase the number of customers  Increase frequency of Repurchase  Increase the average value of the transaction

3 Three Ways to Grow your Business INCREASE Numbers of Sales 1,000 10% Increase 1,100 33% Increase 1,333 INCREASE Value of Sale 100 10% Increase 110 25% Increase 125 INCREASE Frequency of Repurpose 2 10% Increase 2.2 50% Increase 3

4 How Do I Increase Sales?  Number of customers  Attrition and Frequency of Repurchase  Value of the transaction

5 Maintaining Your Old Customers Attrition  Reducing attrition should be part of every company strategy, but it is almost universally neglected.

6 What is Your Attrition Rate?  If you have 500 customers this year  If you lose 100 customers per year  Your attrition rate is 20%

7 What Do You Have Now? Current # of Customers AverageRepurchase Total Sales Salefrequency% 500 $150120.00%(1.2 times) $90,000100.00 Profit with current repurchase frequency Sales or revenues $90,000100.00% direct costs $(34,200)-38.00% Gross Profit $55,80062.00% indirect costs $(9,000)-10.00% Profit $46,80052.00% Operating expense $(18,000)-20.00% Profit before EBIT $28,80032.00% Value of your Current customer base

8 What can you expect? Normal Customer attrition Price Increase AverageRepurchase Frequency -10.00%10% $1515%138.00%( 1.38 times) -50 Customers Left 45010% $16515%138.00% $102,465 Extra Sales $12,465 Profit with increased frequency Sales or revenues $102,465100.00% direct costs $(38,937)-38.00% Gross Profit $63,52862.00% indirect costs $(8,550)-5.00%marketing etc. Profit or Contribution $54,97857.00% Operating expense $(17,419)-17.00% Profit before EBIT $37,55940.00% Extra Profit $8,7598.55% Value of current customer retention

9 Why Did They Stop Buying From Us?  None or limited communication with customers that have not purchased in at least a year  They no longer benefit from your product  They are unhappy with your company  Don’t know of your new offerings  You are not giving them any new reasons to buy  Competition doing more and better promotion and marketing

10 How to Reduce Attrition  Frequent Communication with Customers  Emails and/or Email programs  Direct mail  Telemarketing  Advertising  Website  Social media

11 Increase Your Customer Retention Rate  Greet all customers when they arrive  Keep a personal diary of major customers and their needs and personal maters  Delivering higher than expected level of service  Communicating frequently with your customers to nurture them

12 Increase the Frequency of Repurchase  Contact Inactive Customers  Running Special events and information nights  Price or gift inducements  Programming customers with Loyalty or programs including price inducements for frequency  Develop backend products  Communicating personally with your customers ( telephone, letter, email social media, etc) to maintain a positive relationship

13 How Do I Increase Sales?  Frequency of repurchase  Number of customers  Value of the transaction

14  The number of clients can be increased by  Increasing the lead or inquiry generation  Increasing the client retention rate  Increasing the conversion from inquiry to sale Increase the Number of Clients or Customers

15 How to Increase Number of Customers  Direct to consumer /business sales visits  Unique selling proposition  Advertising  Increasing number of leads guaranteeing purchases  Delivering higher than expected levels of customer service  Preemptive marketing  Using public relations  Increasing value through better customer service  Increasing perceived value through better customer education  Social media  Website

16 Increase your Lead/Inquiry Generation  Referral systems  Acquiring clients at breakeven and profits on the back end  Guaranteeing purchases through risk reversal  Host beneficiary relationships  Advertising  Using Direct mail  Telemarketing by you or an outside firm or person to make appointments  Special event and information nights  Using qualified lists that target your prospects

17 Increase Your Conversion From Inquiry to Sale  Increasing sales skills of your staff  Qualifying leads upfront  Making irresistible offers  Educating your clients by giving them reasons why

18 How Do I Increase Sales?  Frequency of repurchase  Number of customers  Value of the transaction

19 How to Increase the Average Transaction Amount /Sale  Increase your prices, and hence your margins  Upsell and cross sell  Offer greater or larger units  Change the profile of products to be more upmarket  Use point of sale promotions  Package complimentary products/services together  Put less expensive impulsive products in strategic and counter locations

20 The Biggest Hurdle to Getting Extra Sales  Commitment  Focus  Consistency.

21 The Sales Process Involves  Product knowledge  Prospecting  The approach  The needs assessment  The presentation  The close

22 Cold Calling  Overcoming the fear of rejection  There are 12 forms of call reluctance:  MOST COMMON:  Stage fright  Telephobia  Yielders Doomsayers.

23 Other Reasons Not to Call  Over preparers  Hyper-pro salespeople – Role rejection  Socially self-conscious Separationists  Emotionally unemancipated sales professionals  Referral aversion Oppositional reflex

24 Results Of You Spending the Time: Sales Goals for Outside Salesmen Sales Goalweekly$2,500 WeeklyDaily # of phone calls100100.00%20100.00% # of persons visited/contacted3030.00%6 # of presentations2066.67%4 # of presentations to decision makers1575.00%3 # of sales533.33%1 Average sale$500 Total sale$2,500$500 Reaching your goals

25 Summary  There are only three ways to grow your business  Increase number of customers  Increase average value of transaction  Increase average frequency of repurchase

26 Available Take Home Information  Up-Sell, Cross-Sell, Re-Sell Information  Proven ideas to increase  Month by Month Sales Promotions  50 Retail marketing ideas  16 quick Retail promotions with no discounting  Sales promotion in today’s economy  Improve your return on marketing  7 Steps of the sales process  Taking the fear out of cold calling Just email us at, or go to our website for the all or any of the enclosed promotional materials or discuss with your personal counselor /mentor.

27 How Can Score Help You Thank you for attending! Santa Barbara SCORE, in conjunction with the Small Business Administration, helps small businesses and start-ups by offering free individual objective, confidential mentoring/counseling in all fields of business with the assistance of individuals possessing deep experience in those fields. If you are interested in FREE Local Mentoring/Counseling: 1.Go to our website: 2.Click the green box: “Request a meeting” 3.Fill in the information requested 4.Click ‘Submit” 5.You’re done. You’ve registered to receive mentoring services, and normally within 48 hours you will be contacted.

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