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Eliminate Underperformers to Improve Business Growth May 17, 2010

Posted by dennissommer in Sales, Strategic Planning.
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Is business growth improvement a goal of yours this year? Getting rid of your underperforming products, services and people is one proven method to improve your business growth in today’s challenging economy.

If you are like most companies, you have added new products and services to your offerings list over the years. You might have added them based on customer requests, new competitor offerings, innovation, entering new market segments or for any number of other reasons.

The general thought is, the more you can offer, the more sales and profit growth opportunities you have. However, the opposite is true. The more you offer, the more confused customers become, leading to longer sales cycles and fewer sales. Your costs of sales, marketing and support increase dramatically. You are spread thinner and thinner and not able to focus on your best sales and profit opportunities.

To dramatically grow sales revenue, improve customer service, reduce costs and improve profits, you need to get rid of all your underperformers. I mean all of them. Evaluate and take action on all of your product, service and staff underperformers.

* Evaluate the sales revenue generated
* Evaluate the cost of sales, marketing and support
* Evaluate individual profitability
* Evaluate time and effort spent
* Evaluate marketing ROI
* Evaluate customer perception
* Evaluate overlapping or duplication

The general rule is – If it’s not performing, shelve it or get rid of it.

Spending less time and money on underperformers will help you drive sales growth and improve your business performance.

I look forward to hearing from you.

Dennis Sommer
CEO, Executive Business Advisers

My specialty is helping companies improve their business growth, sales and marketing performance.

Business improvement specialties include: business startup  , business growth , sales , marketing , business coaching , strategic planning and customer retention

Call me today to schedule a free consultation:   800-627-6512

 

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Comments»

1. Vipul Adhvaryu - May 19, 2010

Dear Mr. Dennis,
Though your comment on shelving underperformers is appropriate, i would really appreciate your thoughts on some model /tips on guidelines for a Marketing Executive on improving Sales Performance during challenging times especially in Industrial Products Marketing wherein Product Performance & competitive pricing (once again in a volatile market) is more critical.

Regards,

Vipul Adhvaryu.

2. dennissommer - May 19, 2010

Vipul, Based on the general information you provided above, I can give you some general guidelines that have worked well for others.

The key to improving your sales performance is to focus both your marketing and sales on the value your company and product provides the customer, giving them an opportunity to experience your products value, keeping the process simple, and making sure you differentiate your company vs. competitors.

This was the short answer, however if you focus on these guidelines you will quickly improve your sales performance and profits.

You can find more ideas in the articles posted here http://www.executivebusinessadvisers.com/Articles.html

Best Regards

Dennis Sommer
CEO and Business Improvement Specialist.

3. Steve Tennant - May 22, 2010

Hi Dennis –

No need to stop at the company’s four walls — you can also fire unprofitable clients/customers, unfavorable industry analysts, under-mentioning media contacts and detach from under-performing channel partners!

To Vipul’s question — you will experience strong pricing pressure when there’s no other reason to choose your product over the competition. Increased focus on identifying and meeting unmet customer needs will help relieve that pressure and result in higher margins.

Dennis, good article – I look forward to #2!

Steve


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