How to Grow Your Business By Increasing Average Transaction

MindStorm, New York’s #1 Boutique Strategy Consulting Firmhas created a series of articles that spoke about the 3 main ways to grow your business:

1.    Get more customers

2.    Get customers to spend more per transaction

3.    Get customers to make purchases more often

In this piece we will discuss the second- how to get customers to spend more money per transaction. Today we are going to discuss 3 great strategies that can add millions to your revenues. The 3 strategies are:

1.    Upsell

2.    Cross Sell

3.    Bundling

The most famous cross-sell comes courtesy of McDonalds: “Would you like fries with that?” The next time you go to any fast food restaurant I’d be shocked if they didn’t try cross-sell or upsell techniques on you. Others you’ve probably heard countless times include “Would you like to make that into a combo?” (cross sell) and “Would you like to upsize your meal?” (upsell). But what’s the difference and how can you apply these to your business? Fact is that most small to medium sized businesses don’t have a system in place for upselling and cross selling their customers. When I say system, that means every single employee use the same approach with every single customer on every single transaction. Think about how many sales that you’re company is missing out on by not offering other complimentary products or bigger packages on every single sale.

Amazon reported that cross sell is responsible for 35% of their sales- and that was 2006 so you can imagine what that is worth to them today!

The definition of Upsell is suggesting that your customer buys a product which is higher in quality or quantity to their original purchase. This could be the more expensive model of the same product or service; or that they add a feature that would make it more expensive. With upsell you’re suggesting they pay more in exchange for a better product or service. Or simply- just buying more of it.

Some examples of this are:

•    Buying a 42” TV instead of a 40”

•    Upgrading from economy to business class for a flight

•    or even buying a second juicer at a deep discount to give as a gift

Cross Selling is when you suggest your customer buys additional products or services from a category that is different to the product or service they are purchasing but should be a good compliment to the original purchase.

For example:

•    Purchasing paper to go with a printer

•    Buying a hands free car kit to go with a mobile phone

•    Adding insurance or a warranty

The third strategy you should use to increase your the amount your customers spend is bundling. Product bundling is offering several products or services for sale as one combined package deal. Bundling is the combination of upselling and cross selling. The power behind bundling is that it triggers an intense motivation to buy the package because it is cheaper than buying each piece in the set individually. The best part is that there doesn’t need to be deep discount to motivate the customer on taking the bundle. Combo deals also make it very convenient for people to buy and convenience is a big motivator.

But before someone would be interested in your upsell, cross sell or package, you have to fully explain the benefits of having these other items. You can’t assume that the customer understands why they should get the insurance that you’re offering for example. You should educate the customer on how often spills happen or how often people tend to break the product and what the costs of these repairs will be if they don’t have insurance. This helps your customer completely understand the value of that warranty instead of just asking “Would you like the protection plan?”

So in order to get maximum results let’s discuss the most effective strategies.

Upsell works better when there’s a small difference in price between what you’re suggesting and the product they’re buying. For example “This model has a bigger screen, the technology is newer so the quality is better, and it’s only $100 more.” As a rule of thumb we found that up to 40% of the time you can upsell for up to 40% more than the initial purchase price. Each market, industry, product, service, and sales person is different so test to see what your numbers will be.

We have found that cross sell also follows the 40/40 rule- 40% of the time you can sell other products or services that complement the original purchase. The total of these products or services should be less than 40% of the main purchase. Cross sells not only increase the customer spend but this is an opportunity to offer things that have higher profit margins. One business model is to offer a deep discount on the main equipment to sell high margin supplemental supplies. You often find computer printers discounted to sell high margin toner. Gillette used this strategy offering a discount on the razors so they can profit on the blade refills. What supplemental services or products can you offer?

Now let’s discuss when to do what. Before increasing someone’s order you have to make sure there is an order in the first place. Upsells and cross sells only works once a person has made a decision to buy in their mind. Once they are sold on the purchase then and only then should you offer additional items. At the point which they decide to buy and they are checking out right before giving you the payment you can say “Would you like an additional juicer for only $40 to give as a gift?” But if a person hasn’t figured out that they need one. They definitely won’t need two regardless of the discount.

Once a person decides that they are making the purchase now it’s time to upsell and cross sell. But which do you do first? There are exceptions but the rule is upsell first then cross sell- then bundle. You deal with the main product first and maximize that sale before you recommend the supplemental products. You can’t start with a printer, then offer paper to go with it, and then now go backwards and ask if they want a bigger printer. The whole reason why cross selling works is because in the buyers mind they are already done with the main purchase and this is a little extra. If you put focus back on the main purchase then it’s not complete. At that point you’re actually risking losing the main purchase. So to recap:

1.    Help the customer find exactly what they’re looking for. Many times they have an idea in their mind. You can offer higher options but only to help the customer find what they’re looking for. Don’t make it too confusing trying to push higher too fast. Your main priority is to make a customer commit to any purchase. From that point you go higher.

2.    Now that they are committed to making a purchase introduce them to a higher model or offer more of that product for a volume discount. This should be done as they are checking out for maximum effect. Volume discounts have a high ratio of success at the point where the customer’s credit card is in the sales person’s hand. Your goal is to make the offer attractive enough where it wouldn’t make sense not to do it.

3.    After you upsold the customer it is important that you make them realize that it wouldn’t be complete without the other items that complement the product. Remember as a kid when you got a brand new toy for Christmas but you couldn’t play with it because somebody forgot to get the batteries for it?! Focus on the experience that your customer was looking for making the initial purchase. What good is buying a beautiful 80 inch high definition flat screen TV if you’re not going to use HDMI cables to see the true picture? If your cross sell makes sense, people will buy.

4.    And finally..bundle packages. Now your customer is excited about the bigger tv, they’re buying the other products that will be a great supplement to the tv and for X amount of dollars they can get the whole shebang. This package should have more cross sells opportunities where they can get everything and it will be cheaper as a package. They can be excited about buying everything (remember people like to buy) and they can justify buying more items with the fact that they received a discount for doing so. Again, people buy on emotion and justify the purchase with logic.

If you follow these four steps on every single transaction you will dramatically increase the amount of money customers spend in your business and they will feel great about doing so.

MindStorm is New York’s #1 Boutique Strategy Consulting Firm. If you are interested in learning how you can dramatically increase sales by incorporating these principles in your sales process than call today and ask to speak to a business consultant.

For More Information about Sales Strategy Consultants Visit us now.

Source: Click Here

10 Practical Tips to Boost Sales Productivity

Effective salesmen are continually looking to advance their efficiency and enhance their selling endeavors. When we work with organizations and use our Sales strategy consultants approach we find the sales staff always asking us for some quick sales tips for them to use.  Here are 10 viable sales tips that can help you and your sales team boost profitability and have a fruitful selling year.

1. Compose shorter emails

Business experts get an average of 85 messages every day, and they spend more than 1/3 of work time reading, arranging, and answering emails.

We are all battling to clean up our inboxes, so chances are an occupied decision maker,  particularly one you don't have a standing association with, will skip over the short novella you messaged. On the off chance that you need to enhance engagement from your emails, and spare your time for more profitable activities, cut the cushion and get in the habit of composing short, cell phone sized messages.

Stick to a 5 sentence email position. Whether you are youthful or old, the fact is that the ideal length of an email message is five sentences. All you ought to do is clarify who you are, what you need, why you ought to get it, and when you require it by.

2. Get more intelligent about overseeing email

Guarantee that you have sufficient time to respond to an email before you open it and invest time reading it. On the off chance that you chose to respond later on, it will make you have to re-read the email, which is a wasteful utilization of your time.

Most messages are not pressing and needn't bother with a prompt reaction. Take a breath and hold up a moment before bouncing into the fray on group emails and non-earnest issues. You'll see that occasionally the most capable reaction is no reaction by any stretch of the imagination.

3. Shorten your meetings with prospects

Have a go at planning short, 15 moment meetings with prospects. This will help you have more beneficial and powerful meetings.

I'm a promoter of short "connect" gatherings. I have observed that sending messages with "connect" in the headline and a speedy appeal for such a meeting unbelievably fruitful. Between the headline and the timing, this methodology is amazingly non-forceful, non-threatening and hard to say no. Could you truly not spare 15 minutes on the telephone or in person?

4. Enhance your follow through

Simply on the grounds that you've got a foot in the door, doesn't mean you've brought the deal to a close. Keep up your determination and do all that you can to stay connected with the prospect post your starting meeting.

5. Put additional time in research

Put aside abundant time to research your purchaser before you connect with them. The most successive reason sales reps are outsold is that they didn't converse with the right individuals, so utilize the research phase to learn whether your lead is a decision maker.

Abstain from sending nonexclusive, mass-mail messages. Rather, utilize the numerous research tools accessible to discover significant data about your lead and craft more personal and applicable messages.  They are significantly more liable to catch the attention of the recipient.

6. Better qualify leads by finding out about your rivals

A well qualified lead will be prepared to purchase and will eventually make a buy either from you or from one of your rivals.
Ask the prospect who else is approaching them. In the event that the answer is "nobody," you might not have made a sufficient job of qualifying – they are most likely not prepared to purchase.

7. Be more beneficial when working from home

Here are three incredible tips that can help you stay centered and beneficial while working from home:
Separate the region assigned for working from where you unwind.

Stick to a work plan as though you were in the workplace.

Make it simple for your team to get a hold of you while you are at home.

8. Upgrade and utilize your marketing collateral

Numerous organizations have awesome marketing collateral, however their sales reps never figured out how to utilize it. Marketing materials are there to help you sell, so get in the habit of offering them to your prospects.

On the off chance that you don't have or don't care for your marketing collateral, work with your sales manager and your marketing team to create or overhaul it. Intend to deliver materials that are short, basic and simple to share over email.

9. Turn into a disciplined time manager

A most straightforward and intense idea around time management is Covey's four quadrants. Watch the accompanying 3 moment video to perceive how the four quadrant model can help you capitalize on your selling time.

10. Clean up your CRM

Your CRM framework is a significant resource that can serve you well in your selling endeavors. That is unless the information that lives there is obsolete and erroneous. Spend an hour or so every month to make sure to verify your CRM information is up to date.  It will spare you time in the long run.

Speak to a business consultant for more ideas on how to increase your organizations productivity! MindStorm or 1-844-646-3786

Article Source:- Click here

Three Ways to Grow Your Business- Fast!

It’s been said many times that you’re either growing or dying- and that saying can be applied to your business as well. Business growth is vital to every organization but the reality is that this is the area in which most companies struggle. Hiring a business consultant through companies like MindStorm, can set you on the fast track to growth.

This article,along with more in this series, is dedicated to helping you achieve that growth. And just like everything that we do here at MindStorm, we will be focusing on strategies that get maximum results in the shortest period of time.

In this article we will discuss three ways to grow your business- immediately. There are many variations of these 3 ways so in future articles we’ll discuss each one in greater detail and give specific examples on how to apply them.

First let’s look at the 3 ways to grow your company:

1) Get more customers
2) Get customers to make larger purchases or more units
3) Get customers to make purchase more often

We’ll use a simple example to demonstrate the formula. It doesn’t make a difference if your company revenues are $100M or $100k, just input your own numbers into the formula.

Let’s say your business has 100 customers and the average dollar amount a customer spends every time they buy from you is $1,000. Some will spend $2500, some might spend $350 but the average dollar amount per transaction let’s assume is $1,000. Let’s also assume that your customers come an average of once per year. So the formula below would look like:

# of Customers  XAvg transaction X Frequency of purchase=$100,000 Annual Revenue

Based on these figures your company would generate $100k a year in revenue. The goal is to increase each of these 3 impact areas so that even a small change can mean a large gain in revenue.

For example, let’s say that you increased your client base by only 10%.

•# of customers: 110
•Dollar amount of average sale: $1,100
•# of times customers purchase per year: 1.1

110 X$1,100  X  1.1= $133,100 Annual Revenue

A 10% increase in each area can equate to more than a 33% growth in your revenues! Let’s look at what a 25% increase can do…

# of customers: 125
# Dollar amount of average sale: $1,250
# of times customers purchase per year: 1.25

125 X$1,250  X  1.25 = $195,312.50 Annual Revenue (95%+ Growth!)

Increasing each impact area by 25% equals to almost a double in your company revenues. Imagine if you are using your real revenues and we were talking about $3 million or $30 million. The outcome is the same. Now, if you think that a 25% increase in these areas are hard to achieve, in future articles our Business Consultants New York are going to give you strategies that have resulted in triple digit returns in each of these areas! Stay tuned…

Ps.. In the meantime, write down every way that you can think of to:

1.Get new customers
2.Get customers to increase the money they spend with you
3.Get customers to make purchases more frequently

MindStorm Strategic Consulting is a New York City based Business Consulting firm which helps organizations achieve rapid growth. MindStorm’s business consultants focus on 4 Key Performance Areas: Strategy, Innovation, Marketing, and Sales. If you’re interested in learning how you can help your organization get more clients, increase sales, and grow profits, call MindStorm and ask to speak to one of our business consultants at 1-844-MINDSTORM(844-646-3687)

Article Source:- Click Here

How to Define Your Sales Process Stages

A training program, called Professional Selling Skills, took a consultative way to deal with sales. The methodology was new then.

The class trained us on all things identified with the "sales cycle" and related stages. Things like qualifying prospects, characterizing needs, comprehension of buying patterns, overcoming objections, presentations, creating listening skills, setting up value added quantification in relationship to ROI, successful follow up ... and the sky is the limit from there. 

If you can envision it, organizations didn't have websites then. They had handouts. Email existed, yet it could just be sent on restrictive systems.

Our lead generation comprised of a printed version D&B list, a ripe creative energy, and the capacity to compose a coherent and persuading letter, which would be followed up with a call to the decision maker. Cold calling at its finest.

Things being what they are, why am I letting you know this? And what does that need to do with distinguishing sales stages? 

A ton has changed from that point forward ... all things considered, technologically at any rate. It's much less demanding now to figure out what you need to know about a prospect or a customer. The phrasing may have changed, yet the fundamental standards of the selling procedure haven't changed all that much.

While each business is distinctive, most take after a progression with practically identical sales stages. I consider it a business improvement continuum with the deciding result being revenue generation. Furthermore, it’s valid for new business acquisition and additionally development of existing business.

The run of the mill sales process in the most simplistic of terms makes a go at something like this:

•Do target audience research
•Create awareness and produce leads
•Make contact, mastermind a meeting, and/or conduct a presentation
•Present a proposal and win the business
•Repeat

It all boils down to two things: establishing credibility and building trust. Once those two things have been determinedly dug in, income gets generated. Providing, obviously, you remember one vital thing - it’s about the client or prospect. What they want and when they want it. Here at MindStorm we are one of the top boutique consulting firms in New York that specializes in the best sales practices. The key is making sure your selling endeavors are in a state of harmony with their purchasing signals and stages.

Like most things shortsighted, there's a huge amount of interrelated, supporting segments connected with those two fundamentals all together for the deciding result to happen. Furthermore, it is from those fundamentals and supporting components from which my sales procedure stages developed.

Here they are.

Stage 1: Qualification

This is the place things like qualitative, quantitative, demographic, and psychographicas well as a bucket load of other exploration is examined to pick up knowledge into prospect conduct and buying patterns. It's the place prospect identification, affirmation, and lead generation comes in. Inbound marketing, social networking, and content marketing endeavors help produce qualified leads, incredibly decrease cold calling, and shorten the sales cycle significantly.

 Stage 2: Preparation

This sales procedure stage incorporates a mixture of different sales abilities, for example, meeting planning, creating interest, anticipating and overcoming protests, presenting, consulting, crowd engagement techniques, closing gestures, follow up; and the sky is the limit from there.

Furthermore, preparation isn't only a one-time thing - it’songoing. A portion of the other preparation components incorporate comprehension the competitive landscape and difficulties faced by your prospects, affirming that your products and services will address those difficulties and do it in a savvy, needs-based way, and establishing quantifiable value. On the off chance that you can't do these things, you're not really prepared.

Stage 3: Presentation

Expecting you've done all your homework in the initial two phases of the procedure, you may be sufficiently lucky to book a meeting. The stage taking after the meeting and/or presentation will be dictated by how well you have nailed down the former two stages and how well you perform your demo (and yes, it is an execution). So you better hear what you're saying and practice it to the point that you could do it in your sleep while as yet appearing to be "spontaneous." It's a work of art. It's likewise a vital piece of building believability and setting up trust.

Stage 4: Realization

Once you've made it past the initial three stages effectively, you may have earned the chance to present a proposal. This is the place you’re settled upon customer needs-based examination and benefits need to be clearly laid out and justified. On the off chance that they are not, don’t even bother submitting a proposal.

Stage 5: Performance

Truly, this business procedure stage is about commitment. In case you're sufficiently fortunate to be granted the business (and a considerable measure of times, diligent work and arrangement aside, deals boils down to timing and luckiness), it turns into your commitment to make certain you'll deliver on what you proposed, and what the customer consented to.

Stage 6: Communication

A fundamental piece of the procedure is keeping both inside and outside contacts included and tuned in. Utilize your CRM system - that is what it’s for. But most importantly, verify you keep the customer updated and do it all the time. In the event that you did well, let them know. In the event that you experienced an issue, let them know about it and clarify how it was amended. They'll respect you in both occurrences.

Stage 7: Continuation

This is a frequently disregarded and underutilized phase of the procedure - despite containing hidden income generating opportunities. How would I know? Because I've witnessed it happen and not happen.

Numerous years have gone since I sat gazing at that D&B printout, and it took me a while to characterize, comprehend, and completely admire the stages in my sales process. You have to make sense of yours taking into account your sales style and training experience.

The names you provide for the stages may be diverse. Be that as it may, more than likely, the strides and supporting components will be comparative.

Keeping in mind I may not recognize what your particular stages are, I do know this: Once you comprehend and do the things important to build up credibility and procure trust, you'll expand the chances of accomplishing your essential objective - producing revenue.

For more sales strategy consulting, speak to a MindStorm Sales Training NYC at 1-844-MINDSTORM (1-844-646-3786).

Article SOurce:-  Click here

Strategic Way to Increase Purchase Frequency

MindStorm is New York’s favorite corporate strategy consulting firm specializing in rapid growth. We created a series of articles to help business owners skyrocket profits. In previous articles we discussed the MindStorm growth formula. The information below should be added to the tools and strategies you have to dramatically grow your business. Enjoy!

We know that there are only three main ways to grow your business and everything else is just an extension of those three ways. The most difficult and most expensive out of the three is to get more customers- yet this is where most people focus their efforts. In the last article we discussed 2 powerful ways to increase the frequency of your customer’s purchases. Those methods were the most common approaches and yet very effective. Today we will discuss some of the more creative ways to increase the frequency your customers make purchases…

1.    Automatic Refills / Shipments- This is a very powerful and yet easy strategy to implement. Your customers benefit from having your products. Running out can be a real inconvenience at times. At the point of sale let your customers know that you will put them on a automatic refill plan in which they can cancel or freeze at any time. Now they no longer will run out of your product and you don’t have to hope they re-order. This one simple step can double or triple your current orders.

2.    Purchase full year up front- Sales force.com drastically reduced the amount of customers they had leaving them by simply changing from a month-to-month service to a prepaid annual service. This dramatically increases cash flow by getting all the money up front and by doing this you increase every customer’s purchase frequency to at least 12 (months). For the customers that they potentially lose because they do not want to pay for (or cannot afford to pay for) the whole year- well through “special managers approval” they can do quarterly payments.

3.    5 Month Delivery- A organic food company pitched me on the benefits of purchasing foods from them. They promised a higher quality of meats, lower prices, and they’ll even replace any steaks that my dog eats or that would fall on the floor. They only sell it in 5 month supplies to save on the monthly delivery. They justified this by saying “this allows us to keep our costs lower so we can give you the absolute best pricing”. Either way.. I had 5 months of food delivered to me. They also split the cost of a chest freezer to be able to facilitate this type of sale. I would have cancelled this service after the first month but now they got me to buy 5X’s that amount by structuring the sale this way.

4.    Educate customers- Take the time to educate your clients on why they should use your services more often. Do not leave it up to them to know. Give recommendations on exactly how often and provide actual research on how using your product/service more often can be healthier for you, more hygienic, or how it would improve the quality of the customer’s life.

5.    Reminder System- Works great for hair salons, dentists, and other businesses that take care of the things that we tend to forget. For example, people will actually appreciate a note in the mail that says “Just a reminder—it’s been three months since your last car service. You really should come back within two weeks. Florists or gift service companies can use the idea too. By getting a list of their customers’ family’s birthdays, they can make lots more sales. Every time a special occasion occurs, they can call and say “I notice it’s your mom’s birthday. Would you like me to send her a $45 bouquet?”

6.    Accept Trade-ins- If your product is regularly updated and improved, it’s worth accepting trade-ins on the old models. You can sell the trade-in models at a top margin and make a great profit.

7.    Offer Credit (or Increase Credit Line)- This will allow your customers to make purchases today that they might not have been able to make because of cash flow restraints.

8.    Regularly phone your customers- You can call just to keep in touch or ask how their experience with your company has been. While on the phone be sure to let them know about any new product lines that they might be interested in or any promotions that are happening.

9.    Create a drawing, offer an exciting prize- All new purchase receive from X catalog receive an entry in our drawing. Make the prize rare, exciting, and make sure the customer knows that they have a reasonable chance of winning. This will get people saying that eventually they’ll have to buy the product anyway, why not stock up now to potentially win a prize.

10.    Labels and Stickers- Especially good when you service a particular piece of equipment, such as the customer’s boiler, sprinkler system, or computer. Just put a sticker on it which says, Problems? 24 Hour Service.

MindStorm is a New York based Corporate strategy consulting firm specializing in helping companies achieve rapid growth. We have over 60 different creative ways to increase purchase frequency from customers. If you’d like more ideas feel free to speak with a business consultant- free of charge. We would love to give you strategies specific to your business.

Source : Click Here