Isn’t this the question on everyone’s lips? Well, I'm going to see if I can help. Firstly, thanks to Barry at Greenhouse Graphics for suggesting this as subject matter. In return, here’s a shameless plug - if you need any printing, get in contact. They offer a great service (they do my business cards) and if you’re charitable, environmentally friendly and ethically minded, they tick those boxes too!
Four ways to increase your turnover
As Josh Kaufman says, in The Personal MBA, there are four simply ways to increase turnover:
- Increase the number of customers
- Increase the average transaction size
- Increase the frequency of transactions per customer
- Raise your prices
This may sound obvious but, for the sake of good preparation and planning, it’s worth stating this first. If any of your activities don’t tick one of these four boxes, stop! It’s time to assess what you are doing.
Increase the number of customers
Lots of ways to do this but they fall in to two pots: 1) Increasing the number of customers that buy your existing products and services or 2) (if the market is saturated) Increasing the type of customers that buy from you by adapting what you sell. Either way this takes proactive sales and marketing activity.
Increase the average transaction size
Think about how you can get your existing customers to spend more with you, often referred to as ‘share of wallet’. What could you add to each transaction in order to increase the value, even by a little?
Increase the frequency
You can do this by changing the habits of your customer, so they buy what you sell more often. This could be done by adding new products and services to what you offer but there’s another way that gives you far more control. Have you noticed how many subscription services there are now, when there used to just be magazine subscriptions? It’s not just a coincidence, it’s strategic marketing.
Raise your prices
Sounds simple. And scary. But when was the last time you did it? Managed properly you can put your prices up. It’s all about communication.
What's the simple way to increase turnover?
There are lots of elements that contribute to being able to achieve these four magic objectives. So, there’s no simple answer to how you can increase turnover. I’m going to attempt to answer this by giving you a starter for
ten nine (!) and I’ll discuss them in separate blogs each fortnight.
- How to set corporate objectives
- How to get meaningful referrals
- Why communication is key
- How to expand or diversify
- How to increase employee engagement
- Why you need to tell your story
- How to improve customer service
- Designing successful processes
- Crafting the perfect sales team
One thing that runs through all these is listening to your audience. And, by taking up the gauntlet from Barry on this subject, I hope I’m demonstrating just that! Or, as the book of the same name says, “They Ask, You Listen”.
For a free 30 minute consultation call 07714794544 quoting TOBlog.