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 info@scoresb.org, or go to our website www.sbscore.orginfo@scoresb.org 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: www.sbscore.orgwww.sbscore.org 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.