LEADS
X
CONVERSIONS
=
CUSTOMERS
X
TRANSACTIONS
X
AVERAGE ORDER VALUE
=
REVENUES
X
MARGIN
=
PROFITS
In the illustration above is it the words highlighted Blue, or the words highlighted Yellow that are most important to a Business Owner? Blue? Wrong!
Customers, revenues, and profits are results. Performance Indicators yes, but not Key Performance Indicators.
The Key Performances Business Owners need to monitor daily, testing and measuring and improving are listed 1-5 below. Leading and inspiring the Team in these key performance aspects of business is critical for growth. As follows:
- Targeting suspects and converting them to prospects. Instore and/or online. = LEADS.
- Converting prospects into customers with a remarkable offer. Instore and online too. = CONVERSIONS.
- Delighting your customers with remarkable customer care so that they buy more often. = TRANSACTIONS.
- Increasing your customer spend rate by innovating perceived added value. = AVERAGE ORDER VALUE.
- Measuring, managing and controlling productivity, system efficiency, and P&L management. = MARGIN.
Is there an order of priority in implementing 1-5 above? Yes!
Start with 5.
It’s no use incurring marketing and selling costs if the direct costs and overheads are too high. A loss occurs.
Next 4.
Increase value for your existing customers at no extra marketing cost.
Go on to 3.
Get your existing customers to spread the word that you care by offering ‘Remarkable Customer Care’. It costs you nothing.
Move to 2.
Up your ‘offer’ game with a convincing articulated sales argument. State your features, advantages, and benefits clearly.
Finally, 1.
With points 5 to 2 covered your profits from your existing business will be solid, enabling you with confidence to increase marketing spend.
If I get all the above right what happens? Mathematically, this…………..
