Just about every business tracks its sales in some way or another.\u00a0 But not all of them track what causes sales.\u00a0 Curious, don\u2019t you think?\u00a0 If we know what causes sales, we can do more of that (whatever \u201cthat\u201d is), and our sales will go up.\u00a0 So why wouldn\u2019t we want to track what causes sales?\u00a0 For more on this, please continue below.<\/p>\n
In some cases, it\u2019s pretty easy to see what causes sales.\u00a0 A company that relies heavily on telemarketing knows that if a salesperson makes 100 calls, he or she will reach the correct decision-maker 35 times, and of those, 10 will result in an appointment.\u00a0 Of the 10 appointments, 4 will result in a sale.\u00a0 So it\u2019s simple.\u00a0 Calls cause sales.\u00a0 So if you want more sales, just make more calls.<\/p>\n
Another company, in the construction business, consistently wins 16% of all the bids it submits.\u00a0 Want more sales?\u00a0 Just submit more bids.<\/p>\n
A gourmet restaurant noticed that whenever a newspaper or magazine gave them a favorable review, their reservation calls surged.\u00a0 So they redirected money from their advertising budget and hired a public relations firm.<\/p>\n
But what causes sales is not always so apparent.<\/p>\n
Consider a business that advertises heavily in a variety of different mediums but can\u2019t track which mediums are working and which are not.\u00a0 As a department store mogul once famously said, \u201cI figure only half of my advertising works for me, but I don\u2019t know which half.\u201d<\/p>\n
Or worse yet, consider the business that depends on referrals to bring customers to its door.\u00a0 Typically they will say, \u201cWe don\u2019t know.\u00a0 People just come to us.\u201d\u00a0 What they should be saying to themselves is, \u201cIf we\u2019re a referral business, how can we drive referrals?\u201d\u00a0 Maybe they should intensify their networking activities, or maybe they try offering an incentive of some kind for past customers to refer new business.<\/p>\n
The point is, we can\u2019t drive sales unless we know the root activity that starts the sales ball rolling.\u00a0 What causes sales is different for every business, and in some cases, where the sales driver is not obvious, it may take some creativity and effort to find it, but it can always be found.\u00a0 And once you find it, you will have the tool you need to set a sales pace that\u2019s appropriate for your business.<\/p>\n","protected":false},"excerpt":{"rendered":"
Just about every business tracks its sales in some way or another.\u00a0 But not all of them track what causes sales.\u00a0 Curious, don\u2019t you think?\u00a0 If we know what causes sales, we can do more of that (whatever \u201cthat\u201d is), and our sales will go up.\u00a0 So why wouldn\u2019t we want to track what causes<\/p>\n