Grow Your Business - Number of Transactions

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Do you know the numbers in your business?  To get your business on a growth fast track, the first place to start is where you are right now.  Like any plan, to get to your end destination, you have to know where you are starting from. 

Understanding basic numbers in your business does not have to be an overwhelming process.  With the "5 Ways" model you can begin to breakdown important numbers in your business today.  Numbers that will allow you to make informed decisions on what activities to focus on for continued growth in your business.  Let’s recap how the activity vs. result formula works:

1. Number of Leads: the total number of potential buyers that you contacted or that have contacted you in the past year.
   
2. Conversion Rate: The percentage of people from your leads who bought your product or service.
   
   Number of Leads x Conversion Rate (activities) = Number of Customers (result)
   
3. Number of Transactions: The average number of times your customers buy from you over a 12 month period.
   
4. Average $$ Sale: The average amount purchased by your customers; add up your total sales and divide by the number of sales.
   
5. Profit Margin: This is the percentage of each and every sale that's profit. In other words, if you sold something for $100 and $25 was profit, then you've got a twenty-five percent margin.

Number Of Transactions: The third activity of this formula is Number of Transactions.

You've probably heard the statistics:  It costs six to seven times more to get a new customer than it does to sell to an old one.  How often do your customers buy from you?  What is the lifetime worth of each customer to your business?

Number of Transactions is when you go through your current customer database and track how often each one buys from you in a 12 month timeframe.  Some may only have bought from you once, perhaps others numerous times.  The idea is to get the average so you have a place from which to gauge your current customer activity. This will allow you to decide how and where you can increase this activity amongst your current customer base.  As an ActionCOACH Business Coach I have over 50 different strategies that focus solely on increasing current customer activity for my clients to choose from. Here is a sample:

• Underpromise and Overdeliver: This one may sound pretty simple, but underpromising can be a bit tricky. It means you need to be willing to create some modesty in your marketing. For example, if you tell your customers it will be in stock on Wednesday, get it on Tuesday, and call them on Monday afternoon to let them know it will be in early. Always do a little more than they expect. If you do as you promise, you will probably get them to return another time; if you go above and beyond the expectation you will have customers for life.
  
• Inform Customers of Your Entire Range of Products/Services: Oftentimes, your customers only buy from you for one specific reason. Don’t assume that your customers know all of the products or services you offer simply because they have purchased one from you. They already trust you and your main product. Be sure to educate your clients regularly on the range of products and services you offer.
  
• Socialize With Clients: Show you customers how much you value and appreciate them by inviting them out to dinner or have a client appreciation party at your home or special location. Make friends with your customers. Spend time with them away from the work environment. This will create a special bond that goes beyond business and consumer. People find it hard to change businesses after they've come to know the owner personally.
  
• Send Out A Newsletter: This is a great tool to stay in consistent contact with current and future customers. Be sure to provide value to those receiving your newsletter. If you include enough good information, people will read, and more importantly, they will buy. A great e-magazine tool is GrowthPOD, which uses your current network of strategic business partners to reach thousands of people each month.

These are just a few of the strategies you could use to increase your customer transactions. The key is to find one or two that you are not currently using and try them out. But remember...Test & Measure your results! To understand which strategies work best for you and your business, you must be tracking the outcome of each strategy! And if it's working, then keep doing it!

Commit to working smarter this year, not harder. Grow your business, one strategy at a time!

Pamela Muldoon, Certified ActionCOACH Business & Executive Coach, has over 20 years experience in communications, sales, marketing, training & development. She has an extensive background in such industries as Radio Broadcasting, Theatre Arts, Travel and Financial Services.

Aligning people on all levels of an organization, Pamela Muldoon helps leaders unleash hidden potential within themselves and their teams. She empowers individuals to identify and create their own customized path to success, achieving a life of wealth and abundance that includes a healthy life balance. 

Pamela holds a BA from the University of Wisconsin-Eau Claire and a Certified Project Management certification from the University of St. Thomas. A community advocate, Pamela serves on the Board of Directors for the Lake Minnetonka Chamber of Commerce, as the Lead Ambassador for the TwinWest Chamber of Commerce, and is a member of the American Society of Training & Development-Twin Cities Chapter. Pamela is a public speaker on business education, an author and teacher. She has taught Radio Sales & Marketing to students at Brown College in Mendota Heights where she also received her Radio Broadcasting Certification. She is also a member of the Graduate program for the National Speakers Association-MN Chapter.

ActionCOACH Business Coach
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