There are only three ways to increase sales, but one method is the most productive.
You can grow by adding customers, and must do so. But adding each new customer costs about 5 times what it takes to preserve a relationship and requires a significant investment of valuable time as well.You can increase your prices, and must strategically do so to sustain profitability. But seeking growth by generically increasing unit prices is challenging in our commoditized world, and more often results in lost customers.
The most productive process for consistently growing sales
is to increase the frequency of transactions or repeat orders with your customers. Focusing on this method generates opportunities to apply the other two tactics.Raising your customer order throughput is dependent on your ability to earn preference with them. To become preferred, you produce more quantifiable value for customers than they can get from some other supplier. Producing more value for them mandates that you learn their business versus “selling” them.
Why is earning preference productive?
- Because it eliminates the need to resell yourself with each proposal – you gain time to pursue new customers.
- Because you secure a stable source of ongoing business – your products/services are proven and approved.
- Because you win exposure to your customer’s unmet needs – leading to successful new products or services.
- Because your access to customer leadership is greater as partner versus vendor – you’re not commoditized.
What strategy do you use to increase sales?
How do you measure your sales productivity?
