Every business person wants to increase their sales so they can increase their profits. But how do you go about doubling your sales? There are three areas to be concerned with when it comes to increasing your sales:
Area 1: clients
These are the prospects which you convert to your clients and the retention of your current clients. You can increase your client base by improving your lead magnets. Make your lead magnets specific so that the client knows exactly what they will get if they click on the lead magnet. If your clients have agreed to receive your newsletter than you can send them emails highlighting what is happening in your business.
Area 2: average spend per purchase
How much does your client spend per purchase? Could you make them spend more? Here you need to look at how to upsell or cross sell products. You could offer extensions on a subscription or you could highlight other products which customers have bought when buying the current product you are selling. This could encourage your client to buy more.
Area 3: frequency of purchasing
How often does your client buy from you? How could you get them to purchase more often? If you use email marketing, then here are three ways to increase the frequency of purchasing. The first is to be consistent with your email newsletter. If your client receives your newsletter once a month. They will soon come to expect the email every month and if they don’t receive it, they may think something is wrong with your brand. So ensure you are consistent with your newsletters. The next item is to send out a limited-time coupon or special offer. Some people suffer from the fear of missing out (FOMO) and they will quickly jump on the advantage of the special offer or coupon. The third strategy is to develop a rewards or loyalty programme. People will more likely choose your product over another product if they know they will get a reward when they have accumulated a certain amount of points.
Now that we know which areas to focus on; how do we double our sales? It has been suggested that you just need to double one area and you could double your sales, but this could be very difficult and you do run the risk of losing your current clients if you increase the cost of your products. But what should you do? According to Marc Wayshak’s 2X formula you can easily double your sales by increasing these areas by 26%.
The formula is as follows:
Sales = Clients X Average spend per purchase X Frequency of purchase.
How does it work?
If we take a company which has 100 clients who spend on average R100 per purchase and your client buys from you once a month. Your sales revenue will be R10 000.
Now if you increase each area by 26% the formula will look as follows:
(100 Clients X 1.26) X (R100 X 1,26) X (1 X 1,26) = Sales
126 clients X R126 X 1,26 = Sales
R20 003,76 = Sales revenue
Increasing each area by 26% is much more achievable than trying to double one area.
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