They are different ways you can increase your profitability in your sales work. We are going to highlight the areas that need your focus in order to increase your profits in this year. Usually January is regarded as the leanest month due to low currency circulation after heavy expenditure in December and the high expenses that comes due to children going back to school. But the next 2 months in this first quarter are important to many entrepreneurs in indicating the trend and profitability of their business.
Failure to meet the first quarter targets may lead to lack of adequate cash to support the budget for the rest of the year. Increasing profitability is a process that involves addressing key areas essential for overall performance. The following are the key areas that need focus for any one keen on increasing profitability for their businesses:
- Keep prospecting, which is the process of looking for people who are capable of being your customers. Your ability to identify, isolate and pursue quality prospects is the best way to increase your profitability.
- Find ways in which you can increase your conversation rate, this refers to the number of prospects who end up being your customers as a result of your effort. You may increase your conversion rate by profiling your ideal customer, and eliminating prospects that do not seem to fit your business solutions.
- Sell more to your existing customers, selling more to the existing customers is easier and more profitable than getting new customers which maybe costly.
- Find ways to increase your margins, the best way in which you can increase efficiency is to lower the costs rather than increasing the prices, that can elicit resistance from your customers or give competitors advantage.
- Reduce the costs of customer acquisition by focusing on cost-effective ways of advertising, sales, calls, sales presentations and other marketing activities. Effective use of technology can give you leverage. Customer referrals is one of the most cost-effective way in which you can acquire new customers.
- Focus on profitable products. Do a cost analysis to establish the profitability of every product or activity that you offer with a view of eliminating those that does not give you profit.
- Do a follow-up on all sales leads. Have a clear follow-up plan on all the customers that show interest in your products and even the old customers.
- Equip you sales people with the relevant skills that will enable them perform their duties well.