improving your sales process abridged
DESCRIPTION
Abridged version of presentation to Blue Mountains Business Expo, 25th March, 2009. This presentation provides a simple sales improvement checklist that can help you get more sales through more effective and efficient management of your sales opportunities.TRANSCRIPT
Improving Your Sales
Process
The 4 Key Sales Areas
1. Number of leads
2. Conversion rate
© Business Roadmap P/L 2007
3. Number of transactions
4. $$ per sale
Sales Needs An Internal Focus
• Without a focus on sales business growth
will suffer
• It’s imperative that the sales function gets
managed WITHIN your business
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managed WITHIN your business
• Why?
NOTHING HAPPENS UNTIL
SOMEONE SELLS SOMETHING
What are you Selling?
Don’t sell the product, sell the benefit
• Basically, things sell when they meet a need.
• And people buy for only 2 reasons
• To ease pain, or
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• To ease pain, or
• To gain pleasure or satisfaction
• What do you provide that will help your
customer’s business, improve their lifestyle or
solve a problem?
How Do You Generate
Leads?
• Cold calling
• Direct marketing
• Reactivate old prospects and clients
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• Reactivate old prospects and clients
• Proactive referral programme
• Networking
Managing Your Sales “Lifeline”
• It’s important to:• Not let enquiries and leads pile up
• Qualify the enquiries and leads as to their
likelihood to purchase
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likelihood to purchase
• Once you follow-up and qualify a Suspect
“in”, upgrade them to a Prospect
Suspects or Prospects
Qualifying your opportunities helps you
focus on business you can win and not
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waste your time chasing opportunities
you can’t, or are very unlikely to win.
“DARN” Qualification• Desire:
• Does your contact want the products and services youare selling?
• Authority:
• Do they have the authority to make a buying decision or do they need to consult with someone else first?
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• Do they have the authority to make a buying decision or do they need to consult with someone else first?
• Resources:
• Determine that the prospect has the necessary budget for your service and you can dedicate what is needed to win
• Need:
• When? In six months? A year? Tomorrow? Only when need meets capability do you have a sale
Tracking Conversion Rates
• Your conversion rate is the difference
between the number of enquiries
received and the number of actual sales
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received and the number of actual sales
made, calculated as a percentage
• Conversion rates can be tracked by
tallying enquiries.
Cross-Selling And Up-Selling
• Cross-selling is selling other items from ‘across’
your product / service range when the customer
makes their initial purchase.
• Up-selling is convincing the customer to purchase
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• Up-selling is convincing the customer to purchase
a bigger item or more of the initial item
• It’s sales tool that increases your average
transaction value
• It’s still customer service, because you’re letting
the customer know about all of their options
Managing Sales Leads
• It’s important to:
• Not let enquiries and leads pile up
• Qualify the enquiries and leads as to their
likelihood to purchase
© Business Roadmap P/L 2007
likelihood to purchase
• Once you follow-up with a lead upgrade them
to a contact
• Update your records regularly as you develop a
history with a customer
Follow Up The Sale With
Service
• Maintain the relationship
• For example, be proactive with complaints:
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• For example, be proactive with complaints:
• Acknowledge problems and apologise
• Let clients vent
• Take immediate action
So what impact can
more effective and
efficient sales processes
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efficient sales processes
have on your business?
The Business Model
Leads
Conversion Rate
Customers
x
=
x3.
Example
5000
25%
1,250
10% Increase
5500
27.5%
1,512
Double-Up
10,000
50%
5,000
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Av. Number of Transactions
Average Dollar Sale Price
Total Turnover
Margins
Profit
x
x
=
x
=
3.
4.
2
$500
$1,250,000
15%
$187,500
2.2
$550
$1,830,125
15%
$274,518
4
$1,000
$20,000,000
15%
$3,000,000
Next Steps
• Get smarter
• Get focussed
• Get busy
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• Get busy
• Get help
• Get ready to thrive, not just survive
Business Roadmap P/Lwww.businessroadmap.com.au
www.businessroadmap.blogspot.com
© Business Roadmap P/L 2007
www.businessroadmap.blogspot.com
Wayne Moloney +61 (0)409 908 204