Three Critical Pieces of Information – Your Core Sales Numbers
There are three pieces of information or data which you, as the business owner and manager, must know:
- The number of prospects generated by your advertising and marketing.
- The conversion rate of prospects to customers.
- The average value of each customer.
The average value of a customer is determined by three things: the number of transactions, the value of the items in the transaction. This provides the amount of the transaction.
- the number of transactions
- the value of the items in the transaction
- the amount of the transaction
By increasing the number of items in the transaction, or the price of items in the transaction, the overall value of the transaction is increased.
We see that having a customer is very important to your business. More importantly, we see that if we can:
- increase the number of transaction per week/month /year
- increase the number of items in each transaction
- increase the amount of each transaction
We increase the overall value of the customer to the business.
We can now see how to increase sales without spending extra money on advertising. It is estimated that the cost of adding a new customer costs 6x more than communicating offers to existing customers.
Having a direct line to your exisiting customers via email, SMS text, in-store promotions, direct mail, special events, builds the relationship.
Most businesses get so focused on new customer acquistion they never realize the potential of the book of business, customers and relationships they already have.