We’re going to give it to you straight, business isn’t easy.
We know that, you know that.
But we believe business can actually be MUCH simpler – if we continue to focus on the right areas.
This email is coming at you from a different angle, while we are Chartered Accountants and Advisors, we are proponents of building the best business possible.
We look at business as a whole unit.
We aren’t just creating plans to save you tax, it’s about providing meaningful guidance, strategy and insight around tax that ultimately betters your business. ⠀
When the business is firing on all cylinders and taking advantage of it’s opportunities, it is providing consistent, predictable returns, and that is the best possible place to make better decisions and continue to grow.
For businesses looking to increase revenue – this is no hack or cheap tactic, but an illumination of the only numbers you need to focus on to grow.
Committing to using the Rule of 10% has been a game changer for so many of our clients.
- Increase the number of leads
- Increase the rate of lead to sale conversion
- Increase the size of the average dollar sale.
Inevitably, your revenue will increase month on month, year on year.
The below is an example of the Rule of 10% in practice.
As you can see, in November 2019, these were their monthly numbers
- 21 Leads
- 13 Sales Meetings (60% converted from enquiry)
- 4 New Clients @ $4000 (30% converted from meeting)
- $16,000 in new revenue generated.
It’s important to note that we’re not even talking a raise of a FULL 10%, just a 10% of their previous result, and this can drastically increase their rate of return.
By following the rule in the next phase, and making minor improvements, there is a major improvement of $6,000 in monthly sales, which is a 37.5% increase from the previous period.
The quality of the answers, comes from the quality of the questions.
- Leads increase from 21 to 23
How can you find an additional 2 leads within the month?
- Sales Meetings increased from 13 to 15 (66% converted from enquiry)
How can you get in front of 2 more people, from the phone to a face to face?
- 5 New Clients (33% converted from meeting)
How can we dial into their needs and present a proposal that converts just 1 extra client for the month?
Are we following up with each opportunity?
- The Average Dollar Sale increased by just $400
Can you find an extra $400 per sale for the month?
Is it time to increase our prices?
OR is there an additional product, service, or add on that your client –
For the sake of this example, we are showcasing an example of year on year, but this can just as easily be achieved across a shorter time span, we have even seen businesses carry this out within a six month period.
So how do we build from here? Let’s look at this step by step.
These are enquiries. The most important part of this section is correctly defining quality leads across the business.
Make sure everyone is on the same page with what is identified as an opportunity – is it just contact details, is it a filled out lead form, or questionnaire.
Make this clear as day, and continue with these questions.
- Where are our leads coming from?
- Are we documenting this process?
- What produces the best quality leads?
- What resources do we need to increase activity from existing channels?
- Are their other channels we can leverage to increase quality leads?
- Lead Conversion To Meeting
In most industries, the initial sale isn’t done in the first phone call, and for an efficient process we recommend scheduling in a Face To Face Meeting.
There is many resources available that suggest that trust is built in the modern day when we have made contact across three different channels – phone, email, and face to face – it creates a higher level of recognition in our prospects.
The more trust you build, and the more invested you are in the process of finding solutions for your prospects, the higher your conversion rates will be.
So many businesses hide from their sales process, and it shows.
- Sales Meetings
This is where you can build a meaningful relationship with your prospective client.
Come prepared with the notes you collected on the initial phone call, or from the lead form.
For the sake of this example we are just identifying sales meetings as being 1 per opportunity.
I.e. Sales Meetings x 1 may encapsulate 2-3 sales meetings with the 1 prospect, but let’s keep things simple for these calculations.
- Meeting Conversion To Sale
From the sales meetings with this prospect, how many are converting to a sale (i.e. a transaction).
Dependent on the industry and the price tag – this may vary as an industry standard.
However, don’t use your ‘industry’ as a crux for low conversion rates – there is a science to this, and many aren’t even doing the basics.
If the leads are qualified you should be comfortably converting above 30%.
- Are you presenting your proposal via email, or face to face?
- Are you getting an answer from them before sending the proposal?
- How are you following up with them?
- What tools do you have do shorten the sales cycle?
- What are the payment options available?
The key note is that we said how are following up with them, not are you.
If you’re not – you should be, no question. We have to remember many people are leading busy lives – work and family dominate our schedules and many times we have multiple balls in the air – many prospects are grateful to be reminded if we do it the right way.
The magic is in the nuance of communication. If you make it super clear you are chasing the transaction and not working through the solution with them.
On the flip side, if you are converting above 70%, don’t pat yourself on the back too hard yet – that is more of representation that you are only talking to the people that are in need, in that moment, and they are ready to buy.
Your focus should be increasing A – Leads.
For long term growth you need to be building a pipeline of short, medium, and long term prospects.
- New Clients Generated
This one is pretty straightforward – it is the figure for the month that represents converted sales, pretty straightforward.
These are the clients that have signed, agreed, and made a transaction with you.
This is the result of your increased efforts in the conversion cycle.
- Average Dollar Sale
We are not necessarily saying increase your core offering by 10% year on year, however, there are many ways to look at this problem and creating the right solution.
Are their additional products or services you can provide that will deliver the desired outcome or result in a more efficient fashion?
Is there room for an ongoing engagement?
We believe in employing the right pricing strategy for your business, and not making hasty decisions at either side of the spectrum.
Don’t rapidly decrease or increase your pricing based on emotional decisions – this is an extremely important part of the sales conversion process.
Our role is to ensure you are profitable in your business so you have the resources available to operate it optimally.
When these improvements are working in concert with each other, and committed to each year – you can see the massive increase over time // $16,000 in new monthly sales to $47,916 – that is a 199% increase by following the Rule of 10%
So, what do we do now?
The above should give you some key insights into how to improve your conversion rate, but if you have any more questions – just reach out
If cash is within the foundations of any successful business – why do so many businesses allow poor planning to burn their hard earned money, and kill their growth.
Cash comes from converted sales, not leads or opportunities.
Improvement in this arena begins with documenting where you are at, and finding the gaps, before progressing the plan to where you need to be.
By establishing a plan and creating consistency with the efforts, we can narrow our focus and reap the rewards.
Establishing systems and processes around the rule one of the most effective ways in reducing waste, increasing efficiency, and profitability.
We want you to stay ahead of the game and we’re here to give you the tools to make it happen.⠀
Let’s make 2021 our biggest yet 💪