The Numbers Rules
Important numbers to consider when increasing sales.
by Kordell Norton, ęcopyright 2007, all rights reserved
When ever you are talking about increasing sales, there are rules and numbers. . . . or is that numbers and rules that you need to be aware of. Follow are the 7 Rules of Numbers.
1.) Rule of the Funnel
It is all about numbers. The more suspects you have, or the greater your number of qualifies prospects you put into the top fo the funnel, the greater the sales that will come out of the bottom. It is a numbers game.
2.) The 20/80 Rule
If you have not heard of the 20/80 rule . . . you will want to take a spaceship back to earth and catch up on basic jargon. 20% of the customers will account for 80% of the revenue. 20% of your employees will cause 80% of your problems. And of course the inverse is also correct. Since salespeople tend to be optimistic, they will often drive 20 miles to find a new customer, when their existing customer who is 2 miles away could buy 10 times the current business. Look at your customers and focus on the top 20% and ask yourself, "how could I better serve these customers?" or "what products and services do I have that my key customers have not bought yet?". Quit looking for new customers . . . look at your exisitng customers and "go to work" giving them great service and consulting insights.
3.) Pennies Today and Buckets of Gold Tomorrow
Things change. The product or service that your customer would not give you the time of day for TODAY, they will gladly pay you in buckets of gold tomorrow. The dentist wants to charge you $50 to clean your teeth today but you are too busy. But tomorrow, when you have that toothache, you will pay 10 to 20 times more to get your needs met. Individuals get promotions, people die, companies merge, new competitive products arrive in the market. Since change is constant if you will just wait, the customer WILL find interest in your products and services tomorrow.
Don't take rejection personally. Take it as an investment for tomorrow when the customer WILL need your product/service.
More importantly, you need to see those customers who told you no yesterday as a great prospect for tomorrow.
4.) The Rule of 7 Touches
There is an understanding that it takes 7 touches for the customer to buy from you. Touch them with a telephone call - #1. Touch them with a direct mail piece - #2. Touch them with an article written about you and your company - #3. Touch them with a reference given by one of their friends about you and your products/services - #4. Yada, yada, yada.
You get the point. It is very unlikely that they will hear you one time and want to buy you, your product and/or service. This sales thing is all about trust and building a relationship. And that takes time. Relationships do not happen overnight. Who is going to ask someone else to marry them on a first date?
5.) The Rule of 250
Ask a funneral director how many announcments to have printed and he will say 250. Ask a wedding planner how many announcments to print and she will say 250 for the bride and 250 for the groom. Surprisingly we seem to have about 250 people in our lives. When you list those at work, at church, in your immediate family, friends, those you go to parties with, etc., it comes to about 250 people.
Have you heard of Six Degrees of Seperation? This is about about the rule of 250. If you took your top 20 customers (remember the 20/80 rule) and multiplied them by 250 . . . it would be about 5000 contacts. Since you are considered "family" by the your current customers, in that they have already let you into their world, they are more likely to introduce you to the other trusted people in their circle of 250. This rule is all about referrals and all about spectacular service.
The Rule of 250 would say to call your current customers and ask them how they are doing, are their things they need help on. Then based on positivie response, you ask them if they wouild help you provide that kind of service and support to their circle of friends and aquantances.
6.) The Rule of 15
In this brilliant article written by Kordell Norton, you will find the Top Ten Ways to Sell . . . only it is 15 ways. And in David Letterman style we start with the least effective way, which happens to be the most expensive and work our way up to the #1 way to prospect and sell. (See - 15 Ways to sell and Prospect)
7.) The Rule of Numbers
Revenue - Expenses = Profits
If you are focus on this simple formula focus on the customers revenue and their expenses and their profits, most of your prospecting will be taken care of for you by YOUR CUSTOMER.
About Kordell Norton - The Top Line Guy
Your organization has a strong interest in the "top line" for growth. As a consultant, speaker, author, Kordell Norton works with corporate, association, education and government organizations who want to focus on branding, sales, marketing, strategic planning/leadership, team building, and customer service.
Kordell was an executive with several multi-billion dollar corporations with executive suite positions in sales, HR, marketing and call centers. As a certified Graphic Facilitator, he uses highly visual processes, along with humor, and entertaining methods for powerful, high energy presentations.
Author of Throwing Gas on the Fire - creating drastic change in Sales and Marketing
He can be reached at (330) 405-1950 or at firstname.lastname@example.org or at his website - www.KordellNorton.com