I have been working with a lot of businesses lately on how they can improve their business. Everyone wants their business to make more sales because more sales means more money (if you follow the steps in my “Cash Is King” blog).
Over the past few years I have developed a way to improve the sales of every business, it’s called the “Peer Wealth Sales Improvement Program.” Here’s the secret.
I am a numbers man. The majority of a business’s sales are made up of the following formulae:
# of customers X average transaction value X # transactions per year per customer
# of customers = (# leads X conversion rate = new customers + existing customers) X retention rate
It’s really quite simple. Once you grasp this concept, increasing your sales becomes easier. To do this, you need to go through the following process:
1. Where are you now? Find out where you currently sit with all of these numbers. If you don’t know, find out! There are ways of finding these in your business if you ask yourself the right questions. Start tracking them.
2. Where do you want to go? Once you know where you are with each of the numbers, ask yourself where you would like to take each of them over the next 90 days, 1 year, 3 years etc.
3. How? Once you find out where you want to go, break down each part of the formulae and put together a plan to improve this number. There are hundreds of ways to improve the numbers above. It’s a matter of picking 1 or 2, implementing them, see if they work, if they do, great, if they don’t then change quickly!
I guarantee if you implement the above in your business you will see your sales go through the roof.
Remember, what does not get measured does not get done.