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4 Strategies to Increase Sales Revenue Growth and Become Your Customers First Call April 16, 2012

Posted by dennissommer in Customer Service, Sales.
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Is it possible to implement strategies to increase sales revenue growth with very little marketing?  Customers calling you 24 hours a day nonstop, more business than you can handle and no need for a large marketing budget?

The answer is, yes, it is possible.  This only happens when you become what I call, the” Customers First Call”, a person or business that customers think of first when they have a need or serious problem that must be fixed.

Are you that person or business in your industry?

How different would your business be if your name comes to mind first when your customer needs help? When you think about it, becoming the “Customers First Call” should be your highest business priority.

Let’s take a look at four (4) strategies you should take to become the “Customers First Call” in your industry.

1.  Deliver superior customer service before they are a customer.

Good companies provide quality customer service.  Once you become their customer, they will handle your issues quickly and professionally.  The difference between a good company and a company who is the “Customers First Call”, is the latter provides superior customer service, focusing on customer service even before a customer becomes a customer.

By going above and beyond everyone else and focusing on superior customer service from the first initial phone call or customer meeting, you can eliminate customer complaints instead of reacting to them once they occur.

2.  Deliver superior communication skills.

Take a moment and think about companies that you would consider a “Customers First Call”.  Do they rattle off statistics and technical jargon that could only be understood by a NASA scientist?  Do they go on forever lecturing and you never have a chance to talk? Most likely your answer is, “No.”

A company that is the “Customers First Call” has the ability to sit down and listen to customers.  Then, they can translate a very complex issue and solution into terms that a six-year old can understand. Their communication is simple and precise.

They deliver superior written, verbal and listening skills. When dealing with customers they are considered master communicators.

3.  Develop tremendous knowledge about themselves, the competition and customer.

Would you hire a professional or purchase a solution from someone who didn’t take the time to learn about your company or your industry?  How about someone who doesn’t know everything about their own products or their competitors?  Would you have confidence in their solution?  Probably not.

So what impression do you leave with your customers?  A company that is the “Customers First Call” not only becomes the expert in their own solutions, they also become an expert on their competitors, the customer, and the customers industry.

4.  Develop strong customer relationships.

A big portion of my work with clients is to increase sales revenue growth and improve business growth by improving their relationship with their customers. In this fast-paced world, many professionals and organizations are so focused on short-term goals; they have forgotten one of the most important success factors.

People buy relationships not products. It’s hard to focus on the customer when you are dealing with monthly quota goals, internal politics, investors, organizational changes and the overflow of email and voice-mail requests requiring immediate responses.

Unfortunately, if you ignore your current customer or new potential customer, they won’t be a customer for long.  Connecting with customers on a personal and professional level consistently, will build a strong customer relationship turning them into lifetime loyal customers.

Are you ready to implement strategies to increase sales revenue growth and become the “Customers First Call” in your industry?

Until next time  . . .

Think Big and Take Action !

Dennis Sommer

Dennis Sommer is the CEO of Executive Business Advisers . Dennis is a highly sought after business growth expert with over 25 years experience.  His specialty is helping companies improve their business performance and sales revenue growth in 30 days.

If improving business performance and sales revenue growth is a priority of yours this year, contact us today to see how Executive Business Advisers can help.  Call 330-676-1876 or email us at sales@ebaac.com

Copyright © 2012 Dennis Sommer All rights reserved.

Sales Scorecard a Strategy to Increase Sales Revenue Growth March 1, 2012

Posted by dennissommer in Sales, Strategic Planning.
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Improving sales revenue growth in today’s business climate is critical to your success. Implementing a sales scorecard strategy is a proven tactic used by top performers to improve sales revenue growth.  This simple strategy described in this article will help you achieve your sales revenue growth goals, increase profits and improve your business performance.

Understanding the Sales Scorecard Concept by Paul Dimodica.

In a world where increased revenue has become an executive mantra, turning business plan strategy into actionable steps that create revenue has become, for some, an albatross.

The key to success is to continually increase internal funding capabilities and help reduce dependence on third-party funding resources. For companies to continually grow, business units must quickly produce tangible sales results. One methodology to accomplish this is through a Sales Scorecard

Like other scorecard concepts, the success of the Sales Scorecard is driving fundamental business changes. By creating identifiable tactical measures for each of your sales team members and contributing departments, you can transform silo performance into group performance and create a pattern for integrated sales team performance.

Sales Scorecards are sub-segments of the original scorecard concept currently used by approximately 60% of Fortune 1000 companies. The original premise of the scorecard is based on linking, intersecting, and managing four distinct business  perspectives. The scorecard process is presently used as a centralized business implementation and strategy tool. The success  behind the scorecard methodology is based on its ability to transcend executive philosophies and help departments become more productive as a team from the boardroom to the mailroom.

Unlike other management philosophies, the sales scorecard is not a static business concept. Instead, it is a continuously changing management tool that allows companies to adapt to market conditions as they develop. Unlike Management By Objective (MBO) theorems where corporations are focused on changing behavior by studying yesterday’s performance to bring about modification for today, the scorecard model focuses on today and tomorrow and those elements that can turn present strategy into future action.

Through the utilization of the Sales Scorecard, businesses can manage sales team’s performance based on today’s information and
react to tomorrow’s market changes and sales success needs.

The scorecard is not just a static list of metrics or isolated Key Performance Indicators (KPIs). Instead, it is a graphical framework for implementing and aligning sales tactics and managing strategy for companies seeking to become successful.

Businesses must manage their capital capabilities to succeed.

Today, most companies can break down their corporate assets into three specific areas, which include:

1. Human capital (employees)

2. Operational capital (product and service development and delivery)

3. Financial capital (business funding, revenue, monthly burn rate, valuation, corporate revenue, A/R, line of credit)

With these capital elements always at risk for companies, it becomes crucial for management to develop a strategic blueprint for all employees to work together. The Sales Scorecard is such a program, but it integrates five areas rather than four. Through its implementation, line and staff associates interact weekly as a packaged team to help drive performance and create revenue as a group instead of traditional department silos.

Five sales management pillars to track are:

1. Sales

2. Marketing

3. Strategy

4. Product Development/Operations

5. Strategic Partners/Alliances

It is important to understand that revenue generation in companies is a cause-and-effect process. Revenue will be short without a market-driven product, services to sell, or appropriate positioning support. Success will be minimized if the focus is placed on the sales department as the primary driver for revenue shortfall rather than identifying and fixing the primary problem. The Sales Scorecard is a visual measurement device used to view the integrated variables of revenue generation from all salespeople.

Additionally, by identifying all sales tactics needed to sell and/or non-contributions as they happen, you can make adjustments to your sales team’s current behavior before it is too late and identify help from other departments that may be needed.

Until next time  . . .

Think Big and Take Action !

Dennis Sommer

Dennis Sommer is the CEO of Executive Business Advisers . Dennis is a highly sought after business growth expert with over 25 years experience.  His specialty is helping companies quickly improve business performance and sales revenue growth.

If improving business performance and sales revenue growth is a priority of yours this year, contact us today to see how Executive Business Advisers can help.  Call 330-676-1876 or email us at sales@ebaac.com

Copyright © 2012 Dennis Sommer All rights reserved.

How to Analyze Lost Sales to Increase Sales Revenue Growth March 1, 2012

Posted by dennissommer in Sales, Strategic Planning.
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Improving sales revenue growth in today’s business climate is not always easy. However, analyzing lost sales is a simple and proven tactic used by top performers to improve sales revenue growth.  This simple strategy described in this article will help you achieve your sales revenue growth goals.

Lost Sales Analysis For Greater Sales Management Success
by Paul DiModica

One of the best sales tools available to CEO’s, VP’s of Sales and sales managers when evaluating salespeople and sales performance is the use of a lost sales analysis metrics program. The lost sales analysis is more effective than percent of quota attainment as a measurement tool, because it measures not just the sales success of an account manager against some predetermined sales quota, but it also measures their success against competitors based on lost sales.

By calculating the total dollar value of lost deals and measuring that against the value of business opportunity inside the geography region, you can more accurately evaluate a salesperson’s performance.

When a sale is lost, it also means that the potential client’s recurring revenue stream is lost for three to five years (i.e., service contracts, training contracts, maintenance, repairs).

So, if a salesperson loses a deal in their territory, it is not just the immediate revenue that is lost, but generally all of the recurring revenue as well.

To focus on sales sold as a percentage of quota as the only measurement of success underestimates the firm’s potential revenue within a territory and overstates a salesperson’s success.

From an integrated business development approach, we do not want to focus only on individual sales successes, but instead look at revenue from a territory potential as a measurement for individuals and companies.

What has occurred is that executives have arbitrarily set up standards of measurement for salespeople that are based on elements that have nothing to do with sales potential.

Lost Sales Analysis Calculation

Here is how the model works:

  1. Determine the potential dollar size for one year of sales within the market segment or geography in which your salespeople are assigned.
  2. When this number is calculated in dollars, divide it by the actual sales quota in dollars to determine the territory efficiencies as a percentage.
  3. Then take the total percentage of the person’s closing ratio for proposals submitted and add it to your territory
    effectiveness percentage.

Example:

Let’s say our territory potential for the first year is $10,000,000 and a rep’s quota for the first year is $1,500,000. By dividing his quota by his territory potential, you will see that his market effectiveness is 15%.

$1,500,000 divided by $10,000,000 = 15% market effectiveness

Next, let’s say our rep has a closing ratio of 25% from proposals submitted. If the rep hits his quota of $1,500,000, that means he has submitted $6,000,000 in proposals and has generated $1,500,000 in sales, leaving 40% of the market available.

25% + 15% = 40% territory effectiveness

So, is the rep that hits 100% of his quota successful?

By this equation, they are only 40% effective and in fact they may have sold $1,500,000 but they LOST $8,500,000 that year in their territory.

If the lost clients had a cumulative effect of recurring lifetime value of 35% per year through additional sales, support, add-ons and upgrades, then that 100% of quota salesperson has actually cost your firm $20,000,000 or more in lost revenue over three years.

Yet, under most sales quota systems, the rep would be deemed successful and the senior management would just try to improve their sales closing ratio as the only mechanism to increase corporate revenue.

This method of back door analysis helps management understand the relationships between sales, quota, salesmanship, territories, and lost sales opportunities. It allows executives to adjust compensation to better reflect those reps that
are “territory” productive and those reps who are “quota” productive.

Generally, shooting for a territory effectiveness of 60% or better is an optimal goal to seek. This way, sales reps must increase their closing ratio and their territory penetration simultaneously to meet their corporate sales goals.

The key to successful sales forecasting is understanding where the sales numbers are, where they need to be, and where they came from.

Until next time  . . .

Think Big and Take Action !

Dennis Sommer

Dennis Sommer is the CEO of Executive Business Advisers . Dennis is a highly sought after business growth expert with over 25 years experience.  His specialty is helping companies quickly improve business performance and sales revenue growth.

If improving business performance and sales revenue growth is a priority of yours this year, contact us today to see how Executive Business Advisers can help.  Call 330-676-1876 or email us at sales@ebaac.com

Copyright © 2012 Dennis Sommer All rights reserved.

8 Strategies to Increase Sales Revenue Growth August 23, 2010

Posted by dennissommer in Sales, Strategic Planning.
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35 comments

Increasing sales revenue growth in today’s challenging economy is not easy.  These 8 sales growth strategies are simple and proven tactics used by sales top performers to improve their business performance.

These simple sales growth strategies have been proven to help companies improve sales revenue growth in as little as 30 days.

1. Bigger revenue comes from bigger offerings. Offer super sizes, volume discounts, extended contracts, offering bundles, etc.

2. Try small “Early Buy” incentives to increase volume, but keep them small with a time limit. You want to attract customers quickly without diluting the offering pricing structure.

3. Stand strong on the value your offering provides and stick with the original price. Do not discount pricing on your offerings if they truly provide the value described.

4. Increase sales revenues by providing three options or price points. Customers are more likely not to choice the lowest price. Use a set of three options to move customers from the lowest to the middle price range. Make sure each range is well defined and the differences stand out.

5. Successful selling to an “Dynamic, Entrepreneurial” company. The buyer in this organization is inclined to make independent decisions. Focus on building trust with the customer, your offering, and your company. Make the information and process simple and straightforward.

6. Successful selling to a “Long Term Visionary” company. Concentrate on the technical features and benefits of your offering. Leverage team selling by matching up your management and technical experts with theirs. Focus on the complete solution that matches or exceeds their long term business needs.

7. Successful selling to a “Bureaucratic” company. Decisions are usually based on past preferences, policies, and regulations. These are the toughest organizations to get your foot in the door. Make them aware of your offerings, be competitive on pricing, and stay in touch by providing customer success stories. These companies love to follow others.

8. After a customer has made a purchase, offer a special deal on the higher grade model.

As you can see, these are simple and straight forward strategies to increase your sale revenue growth.  One or more of these strategies should be a part of every companies sales growth strategy.

To really benefit from these sales growth strategies, you must also differentiate yourself from your competition.  If you can successfully do both quickly, you will become a top performer in your industry.

Until next time  . . .

Think Big and Take Action !

Dennis Sommer

Dennis Sommer is the CEO of Executive Business Advisers . Dennis is a highly sought after business growth expert with over 25 years experience.  His specialty is helping companies improve their business performance and sales revenue growth in 30 days.

If improving business performance and sales revenue growth is a priority of yours this year, contact us today to see how Executive Business Advisers can help.  Call 330-676-1876 or email us at sales@ebaac.com

Copyright © 2012 Dennis Sommer All rights reserved.