The Only Three Ways to Increase Sales
Regardless of the type of marketing you do, it must increase sales. Of course, the sales process will determine whether the prospect will actually buy, but that also depends on the quality of the prospect you are attracting. When you attract the wrong kind of prospect (because your marketing isn’t what it needs to be), it doesn’t matter how good your sales process is. You may even close the sale, but you won’t build the kind of business you want if you don’t attract the right type of prospect. Regardless of the type of business you are in, there are only three ways to increase sales:
1. Increase Sales from Existing Clients
The first (and possibly the easiest) way to increase sales is to get your existing clients to use your services or buy your product more often or sell more services. This can have a dramatic effect on your income. By marketing to your existing client base alone, you could literally double your business. This is assuming that you have something compelling and valuable to offer your past and existing clients, patients, or members.
As you’ll see, marketing to your past and existing clients is one of the most important marketing activities. In fact, not marketing to your past clients is what I call the biggest marketing mistake of all!
It is estimated that it costs an average of 500 percent more to gain a new client than to keep an existing one. Existing clients already know you. You already know them. They have already paid your price. They are the most likely to do business with you assuming that you have a repeatable service and other products to offer. Plus, they’re your primary source for referrals. If you aren’t in touch with them on a regular basis, you won’t build repeat and referral business, which is key to a profitable company.
2. Increase Number of Clients
Speaking of referrals, the second way to increase sales is to get more customers, clients, patients, guests, or members. This is the one that people usually think of first. Most small business owners say that 85 percent of their business comes from repeat and referral business, yet they don’t have a system in place to maintain and increase repeat and referral business.
Most small business owners say they build their business through “word of mouth,” but they don’t have a referral system in place. There are many ways to get more clients, but the best way is through referrals, and I’ll show you how to put your word of mouth marketing into a phenomenal system.
3. Increase Price
This is a powerful way to increase sales, but many small business owners are convinced their customers won’t pay more for their service or product. They are convinced that there is a limit put on pricing due to the poor economy, etc.
I hope to change your mind on this, because when you increase your price, you can even lose a significant amount of sales volume and make the same profit doing less work. If you raise your price and you don’t lose much or any sales volume, you are making more money while working less!
Work less. Make more.
That sounds good, doesn’t it? It’s not that you shouldn’t work hard. The point is that if you’re like most small business owners, you’re working too hard for the little you are making!
Once you understand your cost of doing business, a simple calculation will show you how much sales volume you can lose before it digs into your profits.
Positioning yourself and your company differently—by creating a different, more compelling message and creating, marketing, and delivering a unique experience your target prospects crave— will allow you to continually increase your price.
The beauty is that you probably won’t lose any sales volume! If you do lose any clients, it’ll be the unprofitable ones you don’t want anyway. And if you do this right, you’ll quickly replace them with clients who are willing to pay a higher price because you will have developed a compelling experience they want to have.
And the best part is that as you continue to build your business at higher prices, the profits really add up.
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