Measure your marketing and sales efforts

In my ebook, marketing value , I emphasize the importance of measuring the level of success of your business.

Basically, there are only three ways to increase profits for your business. To measure your sales, you must first identify these three pieces of information (values) important:

• The number of potential customers generated through marketing and advertising.
• The conversion rate of your prospects to buyers.
• The average value of your customers.

Any company, regardless of industry, began selling process.

For example, in a retail, advertising is a way to generate leads. Then the sales representative with the potential customer, present the product / service and generates a sale.

A self-generating potential customers through calls and references, using direct mail, email, telemarketing or the advertising in magazines. Subsequently, the self-employed followed up with potential customers by inviting them to an appointment. Finally, it concludes a sale.

A manufacturing company can generate leads by registering on waiting lists for any project.Then the company may make offers and try to win contracts.

A service company can use advertising and workshops to attract the attention of potential customers. Then, it presents its services and tries to make a sale.

Any company can employ a sales representative who will be responsible for prospecting, presentation products and closing the sale.

During the sales process, we offer the product / service that best meets the client's needs.Example, if a customer buys a tent for the winter, it may also need a sleeping bag (4 seasons), mattress foam, hiking boots, spikes, snowshoes, stove, etc.. By tracking the expenses incurred by each client, the leader of the company can determine if the sales representative and the employees fill all the needs of consumers rather than just the products / services requested.

The three core values ​​or growth factors of sales, work together to grow your business exponentially.

Before the integration of your value proposition , be sure to determine the three values ​​mentioned above.

They can sometimes be difficult to measure at the outset. Do not guess these figures. First, try to reserve a full week to track their progress.

First save the personal data of customers with receipts, contests, or simply by asking the clients. Each new client is a potential customer, measure the number of potential clients that you served. Ask them where they heard about your business. Note: If your business is online (website), be sure to track the number of visits to your website.

Then add the number of invoices, contracts, additions, receipts, you have accumulated during the week.

After that, divide the number of buyers (total invoices) by the number of potential customers to calculate your sales conversion rate.

Finally, divide the total amount of revenue generated by these customers by the number of buyers and get the average value of the customer.

You can estimate. Do not dwell on the correct figures. An estimate is better than nothing.

I explained in a different way.

Task No. 1, determine the number of potential customers generated through advertising and marketing.

A potential customer is a person who visits your business, visit your website, call you on the phone, attending your presentation, request for additional information about your products / services.

Begin by following this figure for a full week. Totalize the value and write it down.

Task No. 2, determine the number of customers (buyers) and generated sales conversion rate.

Among all potential clients who have approached, add the number of potential customers who have purchased your products and have used your services. Divide this value by the total number of potential customers generated during the same period. Is that it is 0.1 (10%) or 0.8 (80%)? Note this value.

Task number 3, determining the average value of each client.

To find the average value of your customers, you need to combine two values. The first is the value of a transaction for a purchase. The second is the number of times that the customer returns and buys for a certain period of time.

So, for example, if you want to calculate the average annual value of a customer, add the amounts of all invoices for a full year, and this value divided by the number of bills this year.

Example:

Invoice 1: $ 50 
Invoice 2: $ 75 
Invoice 3: $ 55

Total: $ 180

Total ($ 180) divided by 3 = $ 60 bills on average per purchase.

If the customer visits your store about 4 times per year, thus gives an average annual value of $ 240.

Now that you have created your value proposition, you must include in all your communications. But before integrating, be sure to measure three factors of your business growth.

As I explained in my free ebook, value marketing , traditional marketing (mass advertising) is only intended to increase the number of potential customers for your business. However, it is much more advantageous to optimize your marketing so as to increase your sales conversion rate and the average value of your customers.

Three-dimensional growth is exponential growth, and this is research.

Take the following example:

1 - You have the attention of potential customers 50. 
2 - Your sales conversion rate is 50%, then 25 you convert potential customers into buyers. 
3 - The average value of a customer / transaction is $ 100.

Your revenues are $ 2500.

Now, thanks to an advertisement, you increase the number of potential customers for your business by 20%.

1 - You have the attention of potential customers 60. 
2 - Your sales conversion rate is 50%, then 30 you convert potential customers into buyers. 
3 - The average value of a customer / transaction is $ 100.

Your revenues are $ 3000.

An increase of $ 500, or 20%.

Now let's see an increase of 20% for all growth factors of your business can do.

1 - You have the attention of potential customers 60. 
2 - Your sales conversion rate is 60%, then 36 you convert potential customers into buyers. 
3 - The average value of a customer / transaction is $ 120.

Your revenues are $ 4,320.

An increase of $ 1,820, or 72.8%.

Now, how does one actually to increase these values ​​to marketing your business

I hope you liked this post.

See you soon!