Sales Forecasting – Turning Lead into Gold
Here we are at the start of a new year full of hope, planning our businesses for 2014. The first step of this process might be a new Sales Forecast. Perhaps you have decided on a 20% increase in sales for this year as you have determined that this would produce the profit growth objective that you are seeking.
So far, so good. Now comes the part where the rubber hits the road. What are you going to change?
A 20% growth in Sales doesn’t happen by itself, particularly as your competitors also have ambitious growth targets, and unless the economy is growing at 20% (around 3% is forecast) something has got to give.
There are basically 5 ways you can increase your sales:
- Increase the number of enquiries
- Increase the conversion to sales
- Increase the average value per sale
- Increase the number of times a customer buys from you
- Increase Your Prices
Which of these strategies (you can of course have more than one) will you choose to achieve your Sales Forecast?
Perhaps you are more ambitions. Perhaps you would like to increase your sales by 50%. How could you do that? These strategies multiply, not add, if you use them together. Therefore a targeted increase of just 8% in each of these strategies will deliver a 50% increase!
Do you think you could increase your enquires by 8%? And your conversion to sales, and each of the other strategies by 8% also?
Perhaps you don’t have equal opportunity to increase in each of these strategies, but by understanding your current position in each of these areas, you will know where the greatest opportunities lie. Having identified the best strategies, you can decide the tactics you will use to achieve the results you are seeking.
Leaving all this to chance without a plan makes your sales very easy to forecast- they will be the same as last year… or worse.
Success is non-sequitur. It doesn’t follow logically. That, is if you have been unsuccessful, it doesn’t follow logically that you will become successful. It requires a leap of logic.
Alchemy is not continuous improvement. That is not how you turn lead into gold.
What are you changing this year to change your results?
All you need to do now is to Empower yourself and take action …
May Your Business Be – As You Plan It.
Dr Greg Chapman – The Profit Whisperer
Learn more about how these marketing strategies would work in your business when you request a Free Preview copy of the best selling Small Business book; The Five Pillars of Guaranteed Business Success
Or find out how to directly apply and implement these strategies into your business and achieve your goals by requesting a Complimentary Business Evaluation now.