Post on 24-Dec-2015
GROWING YOUR BUSINESS THE SMART WAY3 specific ways to do it
Three Ways to Increase Your Sales and Grow Your Business
Increase the number of customers Increase frequency of Repurchase Increase the average value of the
transaction
Three Ways to Grow your Business
INCREASE Numbers of Sales
1,00010% Increase
1,10033% Increase
1,333
INCREASE Value of Sale
10010% Increase
11025% Increase
125
INCREASE Frequency of Repurchase
210% Increase
2.250% Increase
3
How Do I Increase Sales?
Number of customers
Attrition and Frequency of Repurchase Value of the transaction
Maintaining Your Old CustomersAttrition
Reducing attrition should be part of every company strategy, but it is almost universally neglected.
What is Your Attrition Rate?
If you have 500 customers this year
If you lose 100 customers per year
Your attrition rate is 20%
What Do You Have Now?
Current # of Customers Average Repurchase Total Sales Sale frequency %
500 $150 120.00%(1.2 times) $90,000 100.00
Profit with current repurchase frequencySales or revenues $90,000 100.00%
direct costs $(34,200) -38.00%
Gross Profit $55,800 62.00%
indirect costs $(9,000) -10.00%
Profit $46,800 52.00%
Operating expense $(18,000) -20.00%
Profit before EBIT $28,800 32.00%
Value of your Current customer base
What can you expect?
Normal Customer attrition Price Increase Average Repurchase Increase Frequency -10.00% 10% $15 15% 1.50 ( from 1.2 times)(500-50
Customers 450 10% $165 15% 1.5 $111,375
Extra Sales $21,375Profit with increased frequency and loss of 10% of customersSales or revenues $111,375 100.00%direct costs $(42,323) -38.00%Gross Profit $69,053 62.00%indirect costs $(13,123) -12.00% marketing etc.Profit or Contribution $55,930 50.00%Operating expense $(19,000) -17.00%Profit before EBIT $35,930 33.00%
Extra Profit $8,130 7.30%
Value of current customer retention
Problems
Problems in Auto Repair Industry
Auto repair and servicing is a blind item which requires solutions that are not easily addressed to - or understood by - the general public:
All this creates mistrust, anxiety, and uncertainty among consumers.
A recent AAA survey states the 25% of all car owners feel that they cannot afford to repair their cars.
Why Did They Stop Buying From Us?
The did not get a comfortable feeling when they came in
They do not understand that the costs may vary from your estimate once you have inspected the vehicle
None or limited communication with customers that have not come in at least once a year
They no longer feel they benefit from your shop
They are unhappy with your company
Don’t know of your new offerings
You are not giving them any new reasons to buy
Competition doing more and better promotion and marketing
How to Reduce Attrition
Frequent Communication with Customers Emails and/or Email programs
Direct mail
Telemarketing
Advertising
Website
Social media
Increase Your Customer Retention Rate
Greet all customers when they arrive
Keep a personal diary of major customers and their needs and personal matters
Delivering higher than expected level of customer service by carefully explaining up front and in writing at the end the reason for the charges and making sure you have their email addresses
Communicating frequently with your customers to nurture them especially after a visit for a repair
Increase the Frequency of Repurchase
Contact Inactive Customers
Running Special events and information nights
Price or gift inducements
Programming customers with Loyalty or programs including price inducements for frequency
Develop backend products
Communicating personally with your customers ( telephone, letter, email social media, etc.) to maintain a positive relationship
How Do I Increase Sales?
Frequency of repurchase
Increase Number of customers
Value of the transaction
The number of customers can be increased by Referrals Increasing the lead or inquiry generation Increasing the customer retention rate Increasing the conversion from inquiry to sale
Increase the Number of Customers
How to Increase Number of Customers
Unique selling proposition
Advertising
Increasing number of leads guaranteeing purchases
Delivering higher than expected levels of customer service
Preemptive marketing Direct to consumer /business sales visits
Using public relations
Increasing value through better customer service
Increasing perceived value through better customer education
Social media
Website
Increase your Lead/Inquiry Generation
Referral systems
Acquiring clients at breakeven and profits on the back end
Guaranteeing purchases through risk reversal
Host beneficiary relationships
Advertising
Using Direct mail
Telemarketing by you or an outside firm or person to make appointments
Special event and information nights. Join the local Chamber of Commerce
Using qualified lists that target your prospects
Increase Your Conversion From Inquiry to Sale
Increasing sales skills of your staff
Qualifying leads upfront
Making irresistible offers
Educating your clients by giving them reasons why
How Do I Increase Sales?
Frequency of repurchase
Add-ons
Number of customers
Value of the transaction
How to Increase the Average Transaction Amount /Sale
Increase your prices, and hence your margins
Upsell and cross sell
Offer greater or larger units
Change the profile of products to be more upmarket
Use point of sale promotions
Package complimentary products/services together
Put less expensive impulsive products in strategic and counter locations
Results : Value of working your plan
Sales Goal weekly $2,500 Weekly Daily
# of phone calls 100 100.00% 20 100.00%# of persons visited/contacted 30 30.00% 6 30.00%# of presentations 20 66.67% 4 66.67%# of presentations to decision makers 15 75.00% 3 75.00%# of sales 5 33.33% 1 33.33%Average sale $500 Total sale $2,500 $500
Reaching your goals
10 Steps to Grow Auto Repair Shop Sales
#1: Avoid the HIPPO
#2: Cut traditional media
#3: Talk less about you and more about customer needs and wants
#4: Stay focused on marketing
#5: Pay attention to ROI
#6: Analyze everything about customers
#7: Sharpen your axe
#8: Interact with existing customers
#9: Increase your pricing
#10: Have a plan
The Biggest Hurdle to Getting Extra Sales
Commitment
Focus
Consistency.
Summary
There are only three ways to grow your business
Increase number of customers
Increase average value of transaction
Increase average frequency of repurchase
Available Take Home Information
10 Steps to grow Auto repair shop sales Value of Improving Customer wait time experience Improve your return on marketing
Other material 50 retail marketing ideas Monthly ideas Techniques to increase sales Sales promotion in todays economy
Just email us at info@scoresb.org , goldmanmarketing@cox.net or go to our website www.sbscore.org
for the all or any of the enclosed promotional materials or discuss with your personal counselor /mentor.
How Can Score Help You
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