One Simple Low Cost Method To Increase Sales

by Doug Smith, President, The Woodhaven Group

If sales are down try this low-cost method to increase sales and instantly improve your business cash flow.  The best part is it takes zero advertising dollars.

Look back at the last 3 years and calculate the average revenue or sales per customer that was generated for a year.

Make a list of your top customers and rank them in order top to bottom by year to date volume and determine who is trending to hit or exceed the yearly average.

Now,  make a list of those customers that are trending below the average, set a specific goal per customer to close the gap and have the sales department assign these customers to the top sales people in your company.  Their mission is to move sales volume up on each of these customers so by year-end their volume is at the predetermined average.

Why would this approach work?

First, you have already invested dollars to get them as a customer so no new advertising is needed to get these sales.  Second, the customer likes your company and what you have to offer since they are purchasing from you.  They are just not buying enough.

Try the following steps to increase sales with these customers:

  1. It sounds crazy but ask them to buy more.  It could be that the sales department has just been taking orders and not trying to build the sale.  Tell the customer how much the company values them as a client and would like to do more business than they currently are doing.  Believe me, this will work by itself with some customers.
  2. Increase sales by identifying a product or service that they are not buying that would be a good fit for the customer.  This becomes new sales for your company and sales that should have been generated with this customer all along.
  3. Offer a rebate or some incentive if by the end of the year their total volume hits the target goal.  If you get pushback, tell them the goal is realistic and is just the average amount purchased by the typical customer of your company.
  4. Review the payment history of this account and if it has been good, inform them that as a valuable loyal customer their credit limit has been increased. Like many users of credit they may purchase up to their credit limit.

I would do all 4 of the above suggestions for each customer.

Bonus method to increase sales:

After you have implemented the above program to increase sales with the “below average” volume customers, do the same steps with the “above average” volume customers.

The result will be a spike upward in the overall annual average revenue per customer.  This all happens without bringing on any new customers.  You are just maximizing the potential with your current customer database. 

Your business should see a jump in sales, cash flow, and profit.

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