Updated: May 11, 2019
As a CPA that specialises in small business growth and development, an often overlooked area of potential in most businesses is the conversion of leads/enquires into sales. In other words turning sales opportunities into actual dollars for you.
Of every 10 enquiries you receive, how many actually result in a sale?
If you don’t know this, stop, take a pen, a sheet of paper and start to record the necessary information so that you can measure the results.
Interestingly when I quiz business owners about their conversion rate, most of them “feel” that its about 6,7 or 8 out of 10. However, when they actually sit down and do the sums, they frequently get a nasty shock, finding that it is in fact only around 2 or 3 out of 10.
Don’t “feel” or “suppose! Get precise! Realise that anything that you can’t (or don’t) measure you can’t (or don’t) manage.
To illustrate this fact, take a note of a recent small business client named Joe that I met with recently.
Joe's business, like many others, relies heavily on incoming phone calls and quotes. I asked him how many sales was he getting from the enquiries he was receiving.
He replied “Oh, about 80%, I reckon” .
I had no doubt that his answer was based on "gutt feel", so when he implemented a simple system that I gave to him, the results blew him away.
He found that he was only converting an average of 3 enquiries out of every 10 sales opportunities into actual sales or just 30%. A far cry from the 80% that he thought he was achieving.
The Average Sale Value of his business was $448.
His gross margin on each sale was 62%.
He was receiving on average, 30 enquiries each week.
The results indicated that he was missing out on $278 of gross profit, for each potential customer that didn't buy from him.
Now, if he works on his conversion strategies and manages to increase his current conversion rate from 30% to 40%, just 1 more sale out of every 10 enquiries, Joe's business would make over $40,000 more in additional gross profit per year. All without spending extra dollars on advertising to generate more enquiries.
Do you know your “Conversion Rate”? How much are you missing out on?
It is just one of the key ingredients to "The Power of Synergy - Secret Recipe" to improve profit and cash flow.
There are over 20 strategies alone for improving conversion contained in my E-Learning Platform.
"The Power of Synergy - Secret Recipe" and the strategies contained in my E-Learning Platform for each of the 5 areas will produce BIG RESULTS from small changes in key areas of your business.
"I can find any small business a minimum of $10,000 additional profit in just 45 minutes."
Request a 45 minute complimentary
and you can put me to the test.