Morning Minutes with Susan: Recent Episodes
Susan Raisanen
Let's talk about the numbers you should be watching that can make the difference between your business merely surviving and thriving! This is especially helpful for small to medium sized business owners, Sales and Marketing managers.
Quick fact: If your Marketing budget is 10% and you spend $6000 on a campaign, your sales need to be at least $60,000 in order for you to get the profits you planned to get.
Do you know how much you should get in return for any dollars spent on an ad campaign? Not knowing this will more than likely eat from your PROFITS!
Once you put out a campaign, you will get leads. Are those leads converting to sales? Think about it...have you ever spent time at a trade show and come back with a fish bowl full of names, addresses and phone numbers? How many of those turned to sales? Did it make your time and money worth it? Think of all your advertising as a Trade Show. How many leads are you getting, and are they converting.
https://www.profitfinderpro.com
Lead, Sales and Marketing Tracking Software
1-800-972-6952
With every ad campaign, there are a certain demographics of people that respond. Are you able to measure your campaigns to be able to see whether or not the campaign was for your ideal client? When you can watch what's happening, you can be proactive to change messages without waiting for weeks and spending a lot more money on useless advertising.
https://www.profitfinderpro.com
Lead, Sales and Marketing Tracking Software
1-800-972-6952
How do you know how well your marketing dollars are working? How can you see exactly what it cost for you to make a certain number of sales from any campaign? The first step, and the most basic in measuring a campaign is the number of leads and the cost of the campaign. There are other, more important numbers to look at here, too. Watch.
https://www.profitfinderpro.com
Lead, Sales and Marketing Tracking Software
1-800-972-6952
Want to know an easy way to increase closing ratios? Knowing your salesperson's strengths will help you when assigning leads. If you know someone is strong at selling a certain product or service, why not send them on that lead? On the other hand, if they're weak somewhere, does it pay to train them or just have someone else sell those types of leads?
https://www.profitfinderpro.com
Lead, Sales and Marketing Tracking Software
1-800-972-6952
What percentage of your sales come from no-cost or low cost advertising, Referrals, Previous Customers and Self-Generated leads? Are your salespeople taking the time to maintain those relationships? When you track the numbers, you can see that the close rates and revenues for these sales are much higher, which means your salespeople's time is best spent in these areas.
https://www.profitfinderpro.com
Lead, Sales and Marketing Tracking Software
1-800-972-6952
When looking at your profit margins on gross dollars sold, part of the expense is the cost of getting the sale. Business owners and managers will benefit from knowing the cost for each sales rep to get a sale from each lead source. That way you can adjust your marketing message, your lead assignment and your training.
Knowing the contract sizes of your individual sales reps can help you with your training, lead assignment and hiring/firing. Are you leaving money on the table? Are some upselling more than others? Knowing the average contract size is also necessary when planning your Marketing budget.
A closing ratio is not the only measure of salesperson effectiveness, but it does have its importance. When we focus on sales performance, we want to look at close rates for all advertising sources compared to industry standards, company standards and goals.
Most companies track closing ratios, but have you considered tracking how much it costs your salespeople to bring in a new customer? How do you measure salesperson effectiveness?
When you start tracking Sales Acquisition costs through your various advertising, you will start to see the strengths and weaknesses of your sales team members and advertising sources. Assigning to salesperson's strengths will increase revenues and decrease advertising cost percentages.
What is the one number in regards to Sales and Marketing that can make the difference between your business thriving or barely surviving? Listen as Susan tells about this number that many business owners do not follow, yet have a direct impact on the profitability of the company.