What makes for a good sales #strategy? How do you come up with a number for your sales figure? How do you then achieve your sales target?
The are very important questions that you should know the answers to and I will teach a very simple method to answer these.
Small Business Sales Strategy
What’s a good sales strategy?
or what are the critical success factors for a good sales strategy – meeting and exceeding customer expectations, retaining customers, maintaining customer profitability, acquiring new customers, lowering customer acquisition costs are some of the CFSs when it comes to the sales strategy.
How do you come up with the number of sales?
it all depends on your target ROI and the ROI depends on how much profit the business can generate. So if the total capital employed by you business is USD 2Mn and your investors want a return of 25% on capital this means a net profit if USD 500,000 to generate a profit of USD 0.5Mn a business that has a net profit percentage of 7% of sales needs to have USD 7.2Mn in sales (i.e. USD 500,000 divided by 7%)
How to achieve your sales target?:
- Break down your total market into segments and then figure out how much you need to sell to each segment.
- Create a sales plan based on the recommendation given at this link
The Product Market Matrix or Ansoff Matrix is an excellent way to increase sales if you find that sales are sagging. Market penetration, product development, market development, product and market diversification are some of the strategies that you could use to reach and exceed sales target.
- The BCG matrix is another method of ensuring that the business has adequate prospective product in the growth phase to ensure that your business will continue to prosper and the products in the “cash cow” phase begin to fade.
- Here is another theoretical model that can be used to identify the business domain that you operate in and how to maximise the number of leads the business will generate. – this is an example of profit impact marketing strategy
- Use of technology and social media to generate more sales leads can be a viral method to grow the business using social proof.
- Apply different business models and sales channels to find more ways to sell. In the modern tech dominated world finding ways to survive the onslaught of competition is key to business survival – finding new ways to service old customers and finding new ways to acquire customers is key to broadening the reach of your sales promotion campaigns.
- Branding and brand awareness is key to the long term survival of your company – having good product brand and company brand will ensure synergy that no other business promotion method can achieve and will help you year after year to help achieve sales figures.
- Sales force training and development is key to keeping the sales effort ahead of the learning curve and competition tightens in the global markets – more and more companies are looking to consultants to provide them with a edge to build a better sales team.
Take a look at some other sales tactics that can be used to boost sales further.