As a small business, you obviously have to be aware of how much money you are spending on advertising. In addition to that, there is no guarantee that the capital that you spend will end in higher profits. The traditional thinking with respect to spending on advertising tends to go according to this logic.
1) Our company spends 100 and gets 30 prospects
2) Of those 30 prospects 10 become customers
3) Those 10 customers give us $5 in profit
4) Therefore, if we want to double our profit to $10, we need to spend twice as much (200) on advertising and promotion.
While this formula could possibly bring success there are other things that we need to do before we spend an additional sum. Is there a way that we can get more than 30 prospects? Is there a way that we can convert more than 10 of the 30 prospects? Is there a way that we can get more than $5 from the 10 new customers?
The fact is that if we can increase any of those percentages, we will have been able to increase our profits without spending any additional money on advertising. Additionally, when we do decide to do more spending, we will have learned how to get more profit for the money that we spend.
Whether your business sells from its internet site or from its front door, the biggest challenge for you isn’t how to get more traffic until you are maximizing the traffic that you are currently getting. Here are some ways to think about whether or not you are maximizing your traffic:
First, are you carefully tracking your leads and prospects when they come to your business? Do you know how they found you?
Second, once they are on your website or in your store, do you know how many decide to buy?
Third, those that do decide to buy, are you and your staff taking advantage of opportunities to sell them something of more value or something that will make their original purchase more valuable?
In the next lesson, we will discuss another way that you can generate more sales without additional advertising expense: building a customer database. However, if nailing down your upsell and cross sells is important to your business right now, we can help you. Call today so that we can show you how to make sure you are getting the most from your sales process whether it is from your website or from your store.