KNOWING YOUR PERCENTAGES
In the world of business, knowing your percentages is an important part of growing a profitable company.
Percentages factor in every marketing effort and consequently, have to be a part of the planning process. A few examples:
- If you send out 100 invitations to prospects that expressed an interest in your product/service, to attend a meeting, what percentage of those 100 will show up?
- If 40 of those invited attend the meeting, what percentage of them will buy?
How many telephone calls do you have to make to get an appointment? People wrongly assume that if people follow you on LinkedIn, or Facebook, or another social media outlet, that they want to meet with you and hear your story. Of those that agree to meet, how many will buy? How many follow up calls should you make before you quit calling?
If you send out 1,000 flyers on your business, how many will respond and how many will actually become customers? If you advertise on social media, or in radio or a newspapers, etc., what is your reach and what percentage will reach out for more information and then what percentage of those will actually become customers?
At some point in time, every small business owner has to face the realities of having to reaching out and find new customers. Knowing the percentages of each marketing outlet, as it pertains to your specific product/service will allow you to know where to spend your time and money.
Some questions to think about;
- Is your product/service profitable enough that you only need to find a small number of customers every month?
- Do you need a large volume of customers every month in order to survive?
- Do you know the cost of acquiring a new customer using various types of marketing outlets? In other words, each marketing effort has to be tracked as to the results.
Don’t keep doing the same thing and expecting different results. Do your homework, track each and every marketing effort and know the cost of new customer acquisition.
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