As a reader of my weekly business development blogs, I am sure you will be aware of the Forecast-Plan-Implement-Report system that underpins the Major-Momentum philosophy of Business Development.
In last week’s blog, I wrote about how to use the 5-dynamic multiplier KPI’s to strategise growth in any business. (Leads x Conversion % = Customers x Transactions x Average £ sale = Revenues x Margin % = profit).
So you and/or your team have set up strategies to increase each of last year’s 5 Dynamic K.P.I’s results by say 10%. If you succeed in such a goal, you will increase annual revenues by circa 43% and net profits by 61%. Small increases in key performance areas multiplying through each other to give you dynamic results.
That’s the plan.
Now you must implement it.
I always reflect that Forecasting and Planning are generally deliberate events, but Implementing, well that’s something else. That’s where the wheels fall off! It takes great leadership and management to implement stuff or, the term I use; ‘Dynamic Influence’.
‘Dynamic Influence’ is about leading by example with energy, ideas, and enthusiasm and the ability to report each week the performances that will lead to an increase in business we desire.
Suspects: How many, (precisely in our target market last week) did we interrupt to tell what we can do precisely for them that our competitors can’t?
Prospects: How many suspects were so interested in our ‘Articulated Sales Argument’ that they gave us their details.
Qualified Prospects: Of those that gave us their details, how many requested a quote?
Conversions: How many accepted the quote and placed an order.
You must track all of these on a weekly basis, reporting the performances back to your Team; identifying areas of success and where results are off-schedule and require immediate correction.
All this consistent Marketing & Sales activity will lead to increasing customers. From these newly acquired customers, we desire increases in transactions and average £ spend, getting us revenues, and margin percentage, getting us profit (Gross & Net).
Finally, amongst the reporting of these Key Performance Indicators, we can report the effect on revenues. As follows:
Are you tracking and reporting to your Team progress?
If you do not measure your performances, how can you improve them?