A Second Assumption
As second assumption let’s look at a CPA firm with a similar goal of $500,000 per year in sales. If your average revenue per client is $750, it would follow the CPA needs to secure 667 clients within an entire year.
| Example 2 – CPA Office | |
| Sales Goal | $500,000 |
| Avg Revenues/Client | $750 |
| Number of Clients | 667 |
Where your business falls it may require an in-between business model, or one of these two, but, for any model.
Determine your key metrics:
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- Sales goals
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- Average revenue/sales per client, transaction or in between
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- How many “clients, sales, transactions ‘ do you need yearly and monthly
Strategic Planning and the Business
A slight detour: this is the moment to think strategically about your business:
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- If your transactions now average $75 – what can you do for them to average $80?
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- If your advertising is attracting only 0.3% to your site – how do you increase it to 1%?
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- If you are only closing 1% of those who land on your page – what does it take for you to close 2%
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- If your average revenue per client is $750 – what does it take to make it $800?
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- How will you be tracking your results?
The cumulative answers will increase your profits significantly.
For example, in our worse case scenario for the online sales business, a 0.1% click-through (CTR) and a 1% sales ratio means that we need 55.5 million impressions per month.
A 2% CTR and a 5% sales ratio reduces that amount to 555,000 or 100 times less. This is not only a significant reduction in advertising costs, but the difference in cost will allow you to buy better quality impressions that might then take your average transaction from $75 to $80.
Generally speaking, the more preplanning and thought on the front end process, the better the back end results secured.
Part two will address marketing tools from social media to digital, traditional and more. It will be thought the lens of the small and medium-sized business owners real-life situations and offer options to improve their results.
More articles on this topic:
3 Marketing Tips to Increase Sales Success
Small business branding-What’s In a Name?
Don’t Kill Off Customers with Bad Ad Campaigns
