When I speak to most business owners for the first time and ask them what they think their sales conversion rate is, they almost always say 60-70%. Sometimes this is true, though most times it is not and with our testing and measuring system, we help business owners to find out what it really is. And surprisingly enough the true answer on average is around 30%.
So what that means is that only 3 out of 10 new leads will purchase from you on average. Now when you consider the cost to buy a new lead, that is the cost of the marketing you need to do to get the phone to ring, people to come in, or to get hits on your website, 3 out of 10 is too low.
There is some good news though … at Action we have 83 strategies to help you improve your conversion rate. And let’s face it, you can’t double 60%, but you can certainly double or even triple 30%. Now I’m not about to tell you all 83 ways to increase your conversion rate right now, but here’s 2 that you can certainly start with …
The first step is to flow chart your sales process … now you may be thinking “what sales process?” Whether you realise it or not, you do have a sales process! For some of you it may be woeful, and for others it may be acceptable, though for most of you it probably is not consistent every time.
You see by flow charting your sales process, you will be able to clearly see what each step in the process is and where it may need to be improved. Having a step by step process, right from the sending out of the marketing piece, to the after sales services, will help bring about a critical aspect of selling … consistency.
The second part to the equation is the sales scripts that need to support each step of the sales process. It’s one thing to have a step by step sales process; it’s another thing to know what to say at each step every time an enquiry is made.
The simplest way to do this is to write down what you say when you have a good sales experience and then work on improving this over time. Or if you have several sales people on your team, work out what your best sales person does and says and document that. This includes the initial phone call, the face to face enquiry and any other contact you may have in the sales process. And even the thankyou letter or card after the sale is made.
By flow charting your sales process and writing sales scripts for every step of the process you will certainly bring about consistency, which will help develop confidence and ultimately help you increase you sales conversion rate … remember to keep it simple.
ActionCOACH Blog
Tag >> business coaching
You want me to set my RAS?
What is that?
Never heard of it you cry!
Your RAS is your Reticular Activated System.
Now before you stop reading this article and think it is going to be some scientific piece of work, let me explain it in layman’s terms. Your RAS is like the compass to your brain, it is like setting the autopilot of your subconscious of the brain to what you want in life.
A practical example may be when you go out looking for a new car, lets say an Audi A4 at the car yard and you are very impressed with what you see. You picture in your mind that particular car being yours and how you would look in it.
You can almost taste how good it would be to have as your own as you visualise how it would look in your garage, what your mates would think, how cool you would look driving through the streets, etc.
For the next few weeks, the only cars you notice on the streets while you are driving, is of course, Audi A4’s.
"Be a creator of circumstances rather than just a creature of circumstances. Be proactive rather than reactive." – Brian Tracy
“What you set is what you get” and this is true for your business.
The above quote implies, if you do not set your RAS and take action towards it, you will be a creature of circumstance and not achieve what you REALLY want in life.
What is it that you desire for your business?
Is it more money, more time, more clients, better staff, more contracts, pay less rent, have higher profit margins?
What is it?
You need to be specific in order to obtain what you want otherwise you will not achieve the exact results you are aiming for.
Imagine if you were the pilot of an aircraft and wanted to fly from Perth to Sydney. The track was 100 degrees but you set 105 degrees. You would definitely not end up in Sydney, probably more like Canberra – not quite the Harbour City.
Your business is the same as this aircraft, if you do not steer it properly you will not arrive at the destination you set out for. Write down exactly what you want and make a plan through goals, through 90 day plans, through your staff, through your business coach, etc.
Set the RAS - take action towards it and be focused on exactly what you want - you will be amazed at the results and opportunities that come your way.
Now you are already starting to think about the benefits of setting your RAS and getting what you want, aren’t you? I believe one of the less obvious and intangible benefits that is most powerful, is CONFIDENCE!
When you set a target through your RAS and reach it, you gain momentum. Once you gain momentum you feel you can repeat the process and if this is towards positive things in your business, generally speaking your bottom line or profit will increase.
Start setting your RAS and get the results you deserve like my clients and I do every week of our work together!
It is that time of year again, Christmas is just around the corner … and it’s time to start thinking about all those customers and how you are going to convert them into “Year-round Raving Fans.”
Most retailers get a massive influx of never seen before customers over the Christmas period. And that’s a massive opportunity, yet most will never see those customers again until next Christmas ... (maybe).
So, here’s how to turn your Christmas shoppers into loyal customers all year round ...
Let’s start at the beginning. Marketing and advertising are more than just getting a customer to buy once and then hoping they’ll come back again. It’s about getting new customers and pro-actively keeping them coming back again and again.
So the question is, how are you going to do this? How are you going to make sure that every customer who buys from you during the Christmas rush comes back again in the New Year?
The biggest excuse I hear from most retailers is, “we don’t have enough time to serve the people, let alone get down their names and addresses.” Let me tell you, you can’t afford not to find out who they are, so you can get them coming back ...
The sales you make at Christmas are just the start of the bonuses you’ll get from the increase in store traffic, if you’re ready to handle it ...
Like a hairdresser I worked with who started to ask every customer if she could call them in 4 weeks to remind them that it’s time to get their hair cut again. Instead of waiting for people to come back she started to get pro-active and increased her turnover by 74% in a matter of 6 weeks ...
A menswear store that enrolled people into a club and gave them a special offer each and every month to come back and buy. They added another 34% to their turnover in the first 2 months. Or, the gift store that did a full weeks trade in 3 hours after writing back to their past customers ...
If you’re already doing this, that’s great, now it’s time to refine it. If not, you’re throwing away a goldmine in lost opportunities.
So, obviously you have to get the names and addresses of your customers. The simplest way to do this is to just ask people for them. You’ll get an even better response if you give people a reason, like special member-only offers, a regular newsletter and anything else you can think of that would give people a reason to become a regular shopper with you.
Just sending people a note that says, “Thanks for buying from us ...” is a great start. It stands out a mile because no one else does it. It’ll bring people back to you, and get them to refer their friends. If you’re not writing to, or communicating with your past customers at least every 90 days you’ve lost all the rapport you built with them to get the first sale.
So, get ready for the increased sales at Christmas, get ready to capture peoples details, and get ready to keep them coming back well into the new year ...
Christmas is an interesting time for business. On one hand, for retailers and associated businesses this is one of the busiest times of the year and for others some will shut down for up to4-6 weeks.
It becomes a self fulfilling prophecy – if you think you are going to be busy you gear up your business that way and if you think things are going to be quiet you start winding down.
The reality is Christmas can be one of the most profitable and productive times for all businesses and here are some tips to make the most of the festive season…
1. Take time to Plan for the year ahead
How clear are you on your goals for 2009? The Christmas period is a great time to start. Do much more than simple ‘New Year Resolutions’. Set clear goals and create a solid action plan so you can hit the ground running and make 2009 your best year yet.
2. Force Staff to Take leave
It’s your business so you set the rules. Consider getting your staff to take leave at quieter times – it may work out better now than other peak times during the year. Roster your staff to ensure that you have the right number and mix of people to get things done right.
Some businesses allow their standards to drop in the lead up to Christmas, using the "we're just too busy to do ....." excuse.
What they miss is that there just might be a new customer/client that has just used their business for the first time - what will their first impression of that business be?
3. When they zig you zag
Your competition will be thinking exactly the same as you. Often the way to get ahead in business is to do the opposite of what others are doing. If your competitors are all winding down how about being proactive and wind up with things like increased marketing or contact all your customers. You’ll be amazed at what business you could pick up plus continue to build valuable relationships with key customers.
4. Set Stretching Goals for your business
It is amazing what people can do when they are set a challenge. Rather than assume that the Christmas period will be quieter, go for producing the same output in the reduced time. Your business and bank account will be smiling as a result and even if they don’t achieve it 100%, I am sure you will be well ahead of where you could have been.
5. Make the Most of Networking opportunities
Christmas can be a great time for networking with lots of opportunities. Be selective with what events you go to and remember that it is called net–‘working’ not net-‘drinking’ or net-‘lunching’. Be purposeful and start building relationships that will serve you in the New Year.
6. Be Proactive around your cashflow
Be on top of collecting cash so your bank account is full going into Christmas. Start planning now and make sure you are on top of your game sending invoices and collecting cash in your business. Ensure you are paid prior to Christmas so you rest easy knowing you have some great cash reserves going into Christmas.
7. Work on your business
Use this time to do all the things you have been meaning to do such as upgrade your website, create new marketing materials, reorganize the workshop and clear out old assets. Start preparing your business so you hit the ground running in the New Year.
8. Say thank you
This is the ideal time to give your customers something to remember you by and above all for them to feel valued. Consider doing something different such as New Years cards / gifts instead of Christmas so you stand out from the rest.
Remember to include your staff and suppliers - after all you can’t do business without them. A small gift to them can build the relationship and have them do that little bit extra for you when you need it.
9. Make sure you celebrate with the people who are important to you
Your family may have missed out over the year on many things but above all on the most valuable thing of all, YOUR TIME! Plan when and what you are going to do with them!
Get your partner a gift the shows him/her that you have appreciated their support over the year. Have an extra gift or two at home so that if unexpected visitors arrive you've got something to give them.
The Christmas period can be one of the most productive times of the year … if you choose it.
What is a Business Coach?
Coaching has been around for a long time in sport but only made the leap to business about ten years ago. The concept of using a coach within a business environment actually makes a lot of sense.
Coaches push athletes to reach their optimum performance and motivate them when the going gets tough, so business coaches assist owners and proprietors overcome the difficult challenges they face in running their businesses and help them attain their dreams and objectives.
Why do I need a Business Coach?
Business coaches are often asked what they can teach someone who has worked in their business, probably for many years. The answer can be found by returning to a sporting analogy.
Why do even talented athletes employ coaches when they are undoubtedly good at what they do? The answer is that coaches are able to recognize the full extent of an athlete’s potential, know how to tap into it, and then use their skills to guide the athlete to winning ways.
In the say way, business coaches have the tools, the vision and motivation to help business owners and their businesses perform to their true potential.
How will a Business Coach help me?
For too long, business owners have had no-one to turn to for help in tackling the core issues that prevent them from achieving the success they are capable of. Delegation is a big problem as is time, team and money.
For example, if your business completely revolves around you to the extent that if you’re not there, you worry that the business will suffer – then you are using your time just to work in the business, with the result that it becomes difficult, if not impossible, to manage and develop effectively.
Business coaches often say your business should work hard so you don’t have to!
If time is an issue, then the chances are that to move your business forward you will need to build a Team.
Great teams don’t just happen; they need to be recruited, trained and motivated. This is a daunting task for many business owners because they often lack the skills and experience required not just to find the right people, but to create the internal systems that will enable them to operate effectively and without constant supervision.
However, the main reason that business owners decide to work with business coaches is money. They realize that they are simply not earning enough to remunerate them for all of the hard work they are putting in. In effect, they want a better return on their investment, or simply want to achieve their own personal financial objective or ambition – whether it is a house in the sun or a brand new Porsche.
What is the first step?
Many businesses throughout Australia have benefited greatly from using the services of a Business Coach and are now enjoying the resulting financial and lifestyle rewards.
To find out how your business could profit from business coaching, contact ActionCOACH on 9325 1811, We will arrange to carry out a free Business Healthcheck, which involves analyzing your business in detail and identifying if your business is suitable for coaching.
If so, we will then advise the coaching program that will be most appropriate to tackle the issues that you face. This is the first step to taking your business to the next level and achieving success that you would never have thought possible.
Chasing market share in today’s business world is a guaranteed formula for chasing your tail. If buying customers is your biggest expense then continually buying new customers (buying market share) is the most expensive way to do business.
Market share, or a focus on new customers comes with an assumption that you are in the business of buying products or services and selling them to customers. If however you swap to the idea of buying customers, then your whole ball park changes.
You are no longer chasing market share, you're chasing wallet share. The issue becomes, how much, how many and for how long can you sell to each customer you buy?
In this world of business, where customer loyalty is everything, you’ve got to know that if you’ve already spent the money to buy a customer then it makes total sense to make sure you get a full return on that customer (your investment).
Chasing wallet share is as simple as remembering that you’ve got a loyal customer base, so what else can you sell to them
Market share, or a focus on new customers comes with an assumption that you are in the business of buying products or services and selling them to customers. If however you swap to the idea of buying customers, then your whole ball park changes.
You are no longer chasing market share, you're chasing wallet share. The issue becomes, how much, how many and for how long can you sell to each customer you buy?
In this world of business, where customer loyalty is everything, you’ve got to know that if you’ve already spent the money to buy a customer then it makes total sense to make sure you get a full return on that customer (your investment).
Chasing wallet share is as simple as remembering that you’ve got a loyal customer base, so what else can you sell to them
If there is nothing different or unique about you, people will only buy from you because of convenience, or price, nothing more. Added to that, you'll never be able to raise your prices: if there's anyone doing it cheaper, people will buy from them.
You need to work out what is special about you, and then make a big deal about it. We call this your Unique Selling Proposition or USP the objective of a USP is to position you against your competitors and to develop powerful guarantees that get to the heart of your customer's frustrations.
A myth about guarantees...
Many people are frightened of guarantees - they honestly think that customers will rip them off. The truth is - most guarantees are never taken advantage of, even when the customer is genuinely dissatisfied.
There are two reasons why - first, people are lazy, and couldn't be bothered. Second, it takes a lot of confidence to stand up and say 'hey, I'm not happy, give me my money back'.
The fact is, most people lack this confidence.
So what makes a successful USP and guarantee?
For a start, it has to be something that your customers VALUE – we’re not talking ‘financial value’ either, but it needs to make people sit up and take notice. Your uniqueness needs to tackle your competitors head on, and your guarantee needs to answer the most common frustrations in your industry.
Even with the most basic products you’re selling an experience and a benefit of owning or using whatever it is you’re selling. If you can guarantee the benefit and experience that people are looking in the first place there is a very high chance they’ll deal with you.
It pays to get an outsider's perspective, so do some market research. Ask your customers and follow up on old quotes. Ask the question, “what would you like to see a business in my industry offer” or “What could I have done differently to have won your business?”
When you find out what that “IT FACTOR” is, do 100% and make a big song and dance about it. You’ll be amazed at the results.
As a Business Coach too often we hear business owners complain of a lack of performance and dedication from their employees. The reason - too many tasks are abdicated and not delegated.
What is the difference?
Well, when an employer abdicates a task or role, they are abandoning all responsibility. A task is simply thrust at an employee and they are expected to perform (How often do we hear "I employed them to do a job, they should know what to do!").
The result - The employer runs from problem to problem putting out fires instead of taking preventative measures to ensure these problems don't keep reoccurring. The employee on the other hand is now confused because they thought they were doing a good job. Eventually the employee loses any confidence to make even basic decisions, compounding issues and making the work environment even less productive.
The first key to a winning team is strong leadership - and strong leaders delegate rather than abdicate.
Delegation relies on the owner keeping control of the situation but not the work. The task is explained, training provided, performance measurements set and taken and the responsibility (with consequences and rewards) assigned.
Employees will still make mistakes, but with an investment in supervision, training and support, the employee will feel; one, more a part of a team; and two, more a productive member of your business. The result - reducing the effects and time that those mistakes impact the business.
The employee gains a clearer picture of what is to be done as well as the importance of the task. They gain more confidence in performing the role, and know that if they make a mistake they must fix the problem.
As a business coach it is my role to guide, educate and assist an owner undertake and implement appropriate systems and procedures that will create the best results for their business. Delegation is sometimes a difficult concept to get many business owners to master, as relinquishing that control is often the most difficult step.
Delegating is actually a higher level of control, monitoring, supervising and developing your team, so they gain the skills and confidence to master the roles and responsibilities they were employed to do.
A strong leaders will keep performance measurements and have regular performance reviews with their team, thus each employee knows clearly that future remuneration or advancement through the company depends on their own individual performance as well as how they work together as a team.
The business owner can now begin trusting their employees. There will be fewer frustrations, more consistent results and less workload on the boss. Everyone is now working together as a team and not individual staff.
Remember - if you treat your employees as staff, you will get ‘Staff All' out of them.
Like to know how to fast track your business & get the absolute most out of life?
As a business coach, coming into contact with many people from all different walks of life, I've found that most business people I meet have some very interesting things in common. When asked "what's most important to you? What do you really want out of business? And out of life...?" The answers always have a similar thread.
What would you say to those questions?
Few businesses rarely analyse the net profitability they derive from each of the different products or services they sell. The exercise can be very revealing.
When I have done this exercise with my clients they have frequently been amazed and yes sometime horrified where the profits are coming from or in some case not coming from. Inevitability within their stable of products and services there are some that are much more profitable than others.
This revelation usually results in some instant changes to adjust the imbalance and impacts their future marketing strategies and focus for their business going forward.