In the next 30 days, I want you to climb your own mountain and really ‘huat’ in this new year.
Everybody wants higher sales, but we know that sales come from customers, and customers give you sales transactions with a certain dollar sale. And customers come from prospects, and prospects come from our target market.
So from here I derive the “5-Way Sales Leverage Chart”:
Target Market
X
Marketing Conversion
=
NO. OF PROSPECTS
X
Selling Conversion
=
NO. OF CUSTOMERS
X
No. of Transactions
X
Average Dollar Sale Price
=
SALES
From the above formula you see that there are only 5 variable things – the target market, marketing conversion, selling conversion, no. of transactions and average dollar sale.
So how to change the 5 things so as to build your business? Let’s look at an example. I have inserted some simple figures into our formula:
Target Market
4,000
X
Marketing Conversion Rate
10%
=
PROSPECTS
400
X
Selling Conversion Rate
20%
=
CUSTOMERS
80
X
No. of Transactions
2
X
Average Dollar Sale
$5,000
=
SALES
$800,000
As a business coach and trainer, I know there are at least (not exhaustive) 372 ways to increase your sales. There are at least 91 ways to expand your target market, 45 ways to increase your marketing conversion, 85 ways to boost your sales conversion, 50 strategies to boost your no. of transactions, 49 ways to boost your average dollar sale. Contact me at andy@asiacoachingtraining.com or whatsapp to me at 65-8201-4347 if you want to the list of 372 strategies.
So let’s rework the formula to build our business. How about just a 10% increase in each of the variables? 10% increase is dead easy, isn't it? Let’s see, with just a 10% increase in each of the ways, what will our numbers look like?
Target Market
4,000 + 10% = 4,400
X
Marketing Conversion Rate
10% + 10% = 11%
=
PROSPECTS
484 (from the above multiplication)
X
Selling Conversion Rate
20% + 10% = 22%
=
CUSTOMERS
106.48 (from the above multiplication)
X
No. of Transactions
2 +10% = 2.2
X
Average Dollar Sale Price
$5,000 + 10% = 5,500
=
SALES
$1,288,408
I want you to notice something here; for just a 10% increase in each of the 5 ways, we get a whopping 61.05% increase in our sales! There is huge multiplier or leverage effect. If you were to increase each of the 5-ways by more than 10%, you’ll get much even doubling or trebling of your sales! And people told me you can only increase sales by 10% or at most 20% a year! What nonsense! Anyone whose business isn't growing massively obviously does not realize they are missing on so many things.
The beauty is that the above business formula works in whatever business you’re in. You can even use the formula for just a department or a division of your business. I have a coaching client who used this for his team of salespeople. He simply consolidates all the 5-ways charts of the entire sales team to arrive at the total company’s sale budget.
What Else Do I have to look at?
Other than the above sales building numbers, you need to look at the systems and people issues in your business. Systems are what make your sales work. For example, if you don’t have good delivery system, how are you going to handle the surge in orders? Systems are classified in just 4 areas – people and education, delivery and distribution, finance & testing/measuring and systems and technology.
One more thing: you need to look at your sales management and leadership – how are you going to be a real effective SALES MANAGER AND SALES LEADER? Are you going to work just as a salesperson or are you a true sales manager or entrepreneur?
The above are some of the pointers that every business should know. I have made the above simple, and it really is simple, but not easy to do. If you need help, just contact me at email andy@asiacoachingtrainng.com or whatsapp me at 8201-4347. Happy sales planning for all!
Andy Ng CA, MBA
Business Coach and Trainer
Asia Coaching Training (Singapore)
Tel: 6225-1784, Email: andy@asiacoachingtraining.com HP: 8201-4347
Visit www.asiatrainers.com for details!
Based in Singapore, Andy Ng has, since 1996, been an international Business Coach and Trainer. He is the founder cum Master Coach and Trainer of Asia Coaching Training. To-date, he has coached over 141 business enterprises on a one-to-one basis and trained over 81,131 people in 14 countries including China, Tanzania ,Sri Lanka, Japan, Australia and Mexico. Andy’s training topics include sales, management and executive skills. Andy has appeared on MediaCorp’s 938Live! “Living Room” program, “Lunch Break at noon”, The Sunday Times, Lianhe Wan Bao, Executive Inc., and other magazines. Visit www.asiatrainers.com or call email him at andy@asiacoachingtraining.com now.
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