November 28, 2008
Welcome back. So how is the world economy crisis treating you these days? Pick one of the following; recession, depression, big business bailouts, major layoffs etc. etc. It is having an affect on consumer psyche.
People are trying to find new ways to cope with a new business reality.
Is it time to get back to basics? I believe it is. We can’t control world events; we can only control our own actions and what we do.
You may have seen the following article; the strategy outlined is as relevant today as it was when. Mark Munday wrote this in 2004. Regardless of your industry, new media, traditional media, professional services or retail, It captures the essence of it's title. Why try and reinvent his words, his wheel?
Nothing Happens Until Someone Sells Something
It almost goes without saying Increasing turnover is the most powerful performance driver in any business. And because increasing sales is so important, an understanding of just how sales can be increased is very useful indeed.
There is a popular misconception that, if you want to increase sales, you must get more customers. But while selling to more people will certainly make sales go up, there are several other ways to increase turnover.Turnover also increases when customers spend more each time they buy from you, and when they do it more often.The easiest way to illustrate the different ways turnover can be increased is to look at the sales formula. But first we define the parts of that formula.
Consider these variables in your business over a twelve month period:
Prospects - The number of people who express an interest in doing business with you.
Conversion Rate - The percentage of prospects who actually decide to buy from you, and become customers.
Average Spend - The average amount customers spend when they buy from you.
Number of Transactions - The number of times, on average, that customers buy from you in a year.
At the end of the year, your sales can be calculated by using this formula:
Sales = Prospects X Conversion Rate X Average Spend X Number of transactions
Clearly; sales can be increased by improving any combination of the 4 variables.You attract more prospects to your business through advertising, cold calling, public relations etc. This is usually the most expensive part of the sale process.
Attracting prospects is also the least productive selling step. Because getting more prospects won't do you much good if you don't convince them to actually buy your product or service.Converting prospects into customers involves spreading the sales process out, into a number of different relationship building steps.
Prospects will only buy from you when they are convinced that they are getting good value. And creating that perception is hard work!
The greater the value of what you are selling, the more important this becomes.
Developing a robust multi-stage sales process, and conscientiously following up leads, becomes critical.
Buying decisions are seldom made on the first contact. And, according to the National Sales Executive Association in the US, you can increase your sales by up to 80% simply by following up!
Here are statistics from their survey findings:
2% of sales are made on the 1st contact
3% of sales are made on the 2nd contact
5% of sales are made on the 3rd contact
10% of sales are made on the 4th contact
80% of sales are made on the 5th-12th contact
Increasing your conversion rate can increase sales substantially: especially if the conversion rate is low to start with. For example, increasing the conversion rate from 5% to 10% doubles turnover.
The Average Spend is increased by cross-selling and up-selling. Cross selling means selling customers a different but related product, in addition to what they asked for.
The Number of Transactions is perhaps the most powerful sales driver. You have already attracted and converted the prospect. And selling to the same customer over and over again makes tremendous sense.
Research shows that it costs six times more to attract a new customer than it costs to re-sell to someone who has bought from you before.
The more you increase the lifetime value of your customers, the more efficient your marketing becomes. You spend less on advertising, because you don't need to attract as many new prospects.
And there is an added bonus, because your customer relationships become stronger, you get more and more free referral business.
So don't put all your eggs in one basket and rely on attracting prospects to create business success. Look for opportunities to cross-sell and up-sell. And find ways to bring customers back more often, and over a longer period of time.
Spread your efforts across all four sales drivers. And watch the cumulative effect of even modest improvements in each one make a big difference to your bottom line.
Copyright 2004, Mark Munday, Business Strategy Coach
Bottom-line: So, what are you going to DO now?
Stay in a good mood,
Brad
Friday
Issue #19 You and The Don't Call List
November 14, 2008
Question 1:
Have you signed up for the National Don’t Call List in order to prevent those annoying and inevitable telemarketing calls?
Whatever they were trying to sell over the phone, we already knew we didn’t want it.
Question 2:
What do you do when a prospect or past client has put you or your company on the DON’T”CALL LIST?
Breaking up is Hard to Do (not really)
So,where are past customers who don’t do business with you anymore?
In business as in a relationship, one person stands there in a state of confusion professing their innocence… “I really don’t know what happened; I thought that we were getting along just fine.”
In business as in relationships some one has to first say “I’m sorry” in order to have a hope in getting back together. You must acknowledge the past problem or perception of a problem, whether you were involved or not. Clear the slate.
Normally it is the supplier who must offer the apology.
Remember; The definition of a satisfied customer is simply one who perceives a lack of a better alternative.
The difference between personal relationship and business relationships is that in business, no one has to stay together for the sake of the kids.
Looking for Mr. New-Client
Prospecting and Profiling for new business is a lot like going on a first date.
(The same applies if someone has come into your store).
You’re interested, but he or she is at the very least, indifferent.
Prior to the date you might ask around to try and get some background on your date, so the opening minutes won’t be awkward. It also demonstrates a sincere intent in making the first meeting a memorable one.
What are some of the rules on the first date?
You would dress well because there will be the inevitable and judgmental head to toe scan.
You would be polite and on your best behavior
You would ask relevant questions about them,
You would look for common interests
You would look for a connection
You would listen for clues to their goals and aspirations
You would never talk about yourself, except when asked, and keep the answers brief and to the point and then turn the conversation back about them.
After all aren’t you trying to make a good first impression?
Do’s and Don’ts
Be relaxed. Be yourself. Tell the truth,
Never talk about his or her past relationships unless they bring up the topic, and never offer an opinion. Just listen as you may pick up a few of their likes and dislikes in a relationship.
The whole point of a first date is to simply see if either of you want to go on a second date.
The Business Date
The reality is that if some sales people acted on first dates as they might on a prospecting or profiling call…they would go home alone…a lot!
Unfortunately due to pressure of reaching budgets and targets, some sales people will tend to act as if they are working for a one night stand. They move too fast, they say the wrong things or very self serving things, all in order to close the deal that day.
“Say good looking, Heaven must be missing a great Sale. Why don’t we get out of here and you can buy from me?”
Potential clients can see this cougar bar pick up trick a mile away and will be reaching for their coat within minutes taking their money with them.
Today, make every date count.
Stay in a good mood
Brad
Question 1:
Have you signed up for the National Don’t Call List in order to prevent those annoying and inevitable telemarketing calls?
Whatever they were trying to sell over the phone, we already knew we didn’t want it.
Question 2:
What do you do when a prospect or past client has put you or your company on the DON’T”CALL LIST?
Breaking up is Hard to Do (not really)
So,where are past customers who don’t do business with you anymore?
In business as in a relationship, one person stands there in a state of confusion professing their innocence… “I really don’t know what happened; I thought that we were getting along just fine.”
In business as in relationships some one has to first say “I’m sorry” in order to have a hope in getting back together. You must acknowledge the past problem or perception of a problem, whether you were involved or not. Clear the slate.
Normally it is the supplier who must offer the apology.
Remember; The definition of a satisfied customer is simply one who perceives a lack of a better alternative.
The difference between personal relationship and business relationships is that in business, no one has to stay together for the sake of the kids.
Looking for Mr. New-Client
Prospecting and Profiling for new business is a lot like going on a first date.
(The same applies if someone has come into your store).
You’re interested, but he or she is at the very least, indifferent.
Prior to the date you might ask around to try and get some background on your date, so the opening minutes won’t be awkward. It also demonstrates a sincere intent in making the first meeting a memorable one.
What are some of the rules on the first date?
You would dress well because there will be the inevitable and judgmental head to toe scan.
You would be polite and on your best behavior
You would ask relevant questions about them,
You would look for common interests
You would look for a connection
You would listen for clues to their goals and aspirations
You would never talk about yourself, except when asked, and keep the answers brief and to the point and then turn the conversation back about them.
After all aren’t you trying to make a good first impression?
Do’s and Don’ts
Be relaxed. Be yourself. Tell the truth,
Never talk about his or her past relationships unless they bring up the topic, and never offer an opinion. Just listen as you may pick up a few of their likes and dislikes in a relationship.
The whole point of a first date is to simply see if either of you want to go on a second date.
The Business Date
The reality is that if some sales people acted on first dates as they might on a prospecting or profiling call…they would go home alone…a lot!
Unfortunately due to pressure of reaching budgets and targets, some sales people will tend to act as if they are working for a one night stand. They move too fast, they say the wrong things or very self serving things, all in order to close the deal that day.
“Say good looking, Heaven must be missing a great Sale. Why don’t we get out of here and you can buy from me?”
Potential clients can see this cougar bar pick up trick a mile away and will be reaching for their coat within minutes taking their money with them.
Today, make every date count.
Stay in a good mood
Brad
Thursday
Issue #18: Top 5 Lessons for Long-term Success
November 6, 2008
MSM: We spend more of our waking hours "working" than any other activity, including family, friends and hobbies.
We often make business issues more difficult and complicated than what is really required and expend more personal energy than necessary.
If you can follow the simple 5 lessons I guarantee that you will be more productive and get more enjoyment out of your efforts.
Lesson 1:
A sales rep, an administration clerk, and the manager are walking to lunch when they find an antique oil lamp.
They rub it and a Genie comes out.
The Genie says, 'I'll give each of you just one wish'
'Me first! Me first!' says the admin clerk. 'I want to be in the Bahamas, driving a speedboat, without a care in the world.'
Puff! She's gone.'Me next! Me next!' says the sales rep. 'I want to be in Hawaii, relaxing on the beach with my personal masseuse, an endless supply of Pina Coladas and the love of my life.'
Puff! He's gone.
'OK, you're up,' the Genie says to the manager.
The manager says, 'I want those two back in the office after lunch.'
Moral of the story: Always let your boss talk first.
Lesson 2
An eagle was sitting on a tree resting, doing nothing.
A small rabbit saw the eagle and asked him, 'Can I also sit like you and do nothing?'
The eagle answered: 'Sure, why not.'
So, the rabbit sat on the ground below the eagle and rested. All of a sudden, a fox appeared, jumped on the rabbit and ate it.
Moral of the story: To be sitting and doing nothing, you must be sitting very, very high up.
Lesson 3
A turkey was chatting with a bull.
'I would love to be able to get to the top of that tree' sighed the turkey, 'but I haven't got the energy.'
'Well, why don't you nibble on some of my droppings?' replied the bull. They're packed with nutrients.'
The turkey pecked at a lump of dung, and found it actually gave him enough strength to reach the lowest branch of the tree.
The next day, after eating some more dung, he reached the second branch.
Finally after a fourth night, the turkey was proudly perched at the top of the tree.
He was promptly spotted by a farmer, who shot him out of the tree.
Moral of the story: B.S. might get you to the top, but it won't keep you there.
Lesson 4:
A man is getting into the shower just as his wife is finishing up her shower, when the doorbell rings.
The wife quickly wraps herself in a towel and runs downstairs.
When she opens the door, there stands Bob, the next-door neighbour.
Before she says a word, Bob says, 'I'll give you $500 to drop that towel.'
After thinking for a moment, the woman drops her towel and stands naked in front of Bob, after a few seconds, Bob hands her $500 and leaves.
The woman wraps back up in the towel and goes back upstairs.
When she gets to the bathroom, her husband asks, 'Who was that?'
'It was Bob the next door neighbour,' she replies. 'Great,' the husband says, 'did he say anything about the $500 he owes me?'
Moral of the story: If you share critical information pertaining to credit and risk with your shareholders in time, you may be in a position to prevent avoidable exposure.
Lesson 5
A little bird was flying south for the winter. It was so cold the bird froze and fell to the ground into a large field.
While he was lying there, a cow came by and dropped some dung on him.
As the frozen bird lay there in the pile of cow dung, he began to realize how warm he was. The dung was actually thawing him out! He lay there all warm and happy, and soon began to sing for joy.
A passing cat heard the bird singing and came to investigate.
Following the sound, the cat discovered the bird under the pile of cow dung, and promptly dug him out and ate him.
Moral of the story: (1) Not everyone who craps on you is your enemy.
(2) Not everyone who gets you out of crap is your friend.
(3) And when you're in deep crap, it's best to keep your mouth shut!
Smile and Stay in a good mood.
Brad
MSM: We spend more of our waking hours "working" than any other activity, including family, friends and hobbies.
We often make business issues more difficult and complicated than what is really required and expend more personal energy than necessary.
If you can follow the simple 5 lessons I guarantee that you will be more productive and get more enjoyment out of your efforts.
Lesson 1:
A sales rep, an administration clerk, and the manager are walking to lunch when they find an antique oil lamp.
They rub it and a Genie comes out.
The Genie says, 'I'll give each of you just one wish'
'Me first! Me first!' says the admin clerk. 'I want to be in the Bahamas, driving a speedboat, without a care in the world.'
Puff! She's gone.'Me next! Me next!' says the sales rep. 'I want to be in Hawaii, relaxing on the beach with my personal masseuse, an endless supply of Pina Coladas and the love of my life.'
Puff! He's gone.
'OK, you're up,' the Genie says to the manager.
The manager says, 'I want those two back in the office after lunch.'
Moral of the story: Always let your boss talk first.
Lesson 2
An eagle was sitting on a tree resting, doing nothing.
A small rabbit saw the eagle and asked him, 'Can I also sit like you and do nothing?'
The eagle answered: 'Sure, why not.'
So, the rabbit sat on the ground below the eagle and rested. All of a sudden, a fox appeared, jumped on the rabbit and ate it.
Moral of the story: To be sitting and doing nothing, you must be sitting very, very high up.
Lesson 3
A turkey was chatting with a bull.
'I would love to be able to get to the top of that tree' sighed the turkey, 'but I haven't got the energy.'
'Well, why don't you nibble on some of my droppings?' replied the bull. They're packed with nutrients.'
The turkey pecked at a lump of dung, and found it actually gave him enough strength to reach the lowest branch of the tree.
The next day, after eating some more dung, he reached the second branch.
Finally after a fourth night, the turkey was proudly perched at the top of the tree.
He was promptly spotted by a farmer, who shot him out of the tree.
Moral of the story: B.S. might get you to the top, but it won't keep you there.
Lesson 4:
A man is getting into the shower just as his wife is finishing up her shower, when the doorbell rings.
The wife quickly wraps herself in a towel and runs downstairs.
When she opens the door, there stands Bob, the next-door neighbour.
Before she says a word, Bob says, 'I'll give you $500 to drop that towel.'
After thinking for a moment, the woman drops her towel and stands naked in front of Bob, after a few seconds, Bob hands her $500 and leaves.
The woman wraps back up in the towel and goes back upstairs.
When she gets to the bathroom, her husband asks, 'Who was that?'
'It was Bob the next door neighbour,' she replies. 'Great,' the husband says, 'did he say anything about the $500 he owes me?'
Moral of the story: If you share critical information pertaining to credit and risk with your shareholders in time, you may be in a position to prevent avoidable exposure.
Lesson 5
A little bird was flying south for the winter. It was so cold the bird froze and fell to the ground into a large field.
While he was lying there, a cow came by and dropped some dung on him.
As the frozen bird lay there in the pile of cow dung, he began to realize how warm he was. The dung was actually thawing him out! He lay there all warm and happy, and soon began to sing for joy.
A passing cat heard the bird singing and came to investigate.
Following the sound, the cat discovered the bird under the pile of cow dung, and promptly dug him out and ate him.
Moral of the story: (1) Not everyone who craps on you is your enemy.
(2) Not everyone who gets you out of crap is your friend.
(3) And when you're in deep crap, it's best to keep your mouth shut!
Smile and Stay in a good mood.
Brad
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