7. Know Your Critical Numbers Number of Enquires Conversion Rate Number of Sales Average $ Sale Frequency of Purchase Nett Profit Margin
8. Phone, Email, Walk-in Enquires or Referrals It is critical that you keep an accurate record. Keep a tally or a tracking sheet. If you would like a free copy of a tracking sheet, please write that on the feedback form Number of Enquires
9. Conversion Rate (%) What is it? The percentage of enquiries that you convert into SALES How do you calculate it? Number of Sales/ Number of Enquires x100 For Example: 30 Sales (month)/ 100 Enquiries x100 = 30%
10. Number of Sales Number of Enquires x Conversion Rate = Number of Sales (Monthly)
11. Average Dollar Sale “How much each customer spends per transaction” How to calculate yours? Turnover/ Number of Sales = Average $ Sale For Example: $12,000 Turnover / 30 Sales = $400 Avg $ Sale
12. Frequency of Transactions How often do your customers purchase from you on an annual basis? (You can include referrals in this equation.)
13. Nett Profit Margin It is the percentage of profit left over after you take out ALL of your expenses. Nett Profit/ Turnover x100 = Nett Profit Margin If you don’t know your Nett Profit Margin… Ask your bookkeeper…
14. Key Leverage Calculator at work Example One: 100 Enquires x 30% Conversion rate = 30 Sales per month x $400 Average Sale = $12,000 Turnover x 1 Purchases Per year = $144,000 Annual T/O x 10% Nett Profit Margin = $14,400 Nett Profit Example Two: (10%) 110 Enquires x 33% Conversion rate = 36 Sales per month x $440 Average Sale = $15,840 Turnover x 1.1 Purchases Per year = $209,088 Annual T/O x 11% Nett Profit Margin = $22,999 Nett Profit $8599 Increase in Nett Profit Or a 59% Increase
15. Reality Check of your business Complete the questionnaire on page two Mark a vertical line under the box that best suits your business If you don’t understand what a certain point is, mark it as a maybe… Then Tally how many ‘YES’ and ‘NO’ that you have. 2 Minutes to Complete
17. Parthenon Theory The more pillars = the more stable your structure
18. Increase Enquiries – Strategic Partnership Make a list of business with the same AAA target market Create an offer that has a high perceived value- and low fiscal cost to you. Connect with the potential partner Set a launch date Support the partner-Don’t Set & Forget
19. Increase Your Conversion Rate: What’s your Guarantee? Intention is to reverse the risk What are the common fears or concerns your customers have about your industry? What’s the impact if you don’t deliver? It needs to be communicated clearly.
20. Increase Average $ Sale: Cross Sell and Up-Sell Strategies What products can you bundle together? Suggestive selling – “Would you like fries with that?” & “Fishpond” Offer a special deal for customers that spend over ‘X’ price.
21. Increase Frequency of Purchases: Client Retention Strategy This does not mean bug them every week with offers! Post a thank you gift to customers after they have purchased (Could be a card) Connect via social media- and engage with them. Give them information that THEY would consider valuable – FOR FREE! (Reciprocity) This could be via a newsletter or social media.
22. Increase Nett Profit Margin:Complete an Expense Audit. Start with Utilities Hours Billed versus Billable Hours Review Wages Review Wastage
23. Thank you for granting me your Listening! My gift to you… “A sixty minute one-on-one consultation” Valued at $197 Absolutely FREE Only if you are committed to implementing strategies (Tick the box on the feedback form) Please take 60 seconds to complete all of the questions on the feedback form.
![The Next 25 minutes… ,[object Object]](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)