Ever had a week in business that seemed like it was slow. Phone not ringing, customers not coming in, no email requests for more business.
It is easy to start blaming the economy, advertising not working or a myriad of other factors. All of which may be having an impact.
However don’t spend too much time blaming stuff you can do nothing about. Take a look at your conversion rates. Sales conversions that is. The percentage of customers who buy from you compared to the number who actually make enquiries.
Of course you will need to do some measuring to know what this is. The quickest way to determine customer numbers is to check your till read at the end of each week. Start recording that number. And don’t stop until you sell your business. Make up a spreadsheet and track it every week from here forward.
The second number may be a bit more challenging to determine – but no less important. You may use a door counter, email tracker, tally sheet beside the phone or till, or refer to your Customer Relationship Manager (CRM). But essentially you need to keep a good record of how many people each week actually express interest in buying something from you. A prospect by another name.
And now you will be able to calculate your conversion rate.
Here at Prosperity Business we recently completed a business assessment on a business which has a conversion rate of 5%. That means for every 100 people that enquire at the business – only 5 make a purchase. The owner was considering investing more money into advertising to get more people through the door. Our suggestion was to invest that money into some sales training with the team. From experience we know that will bring a much bigger bang for the investment.
By moving the conversion rate from 5% to 10%, we can expect a doubling of turnover. Which means the next bottleneck will be operational efficiency to handle the increased workload.
A nice challenge to have.
Make it a prosperous week.