SALES PLATFORM & Sales Activity Planning
Not everyone who responds to your advertising, or who you approach, will buy your product or service. Therefore in order to achieve your sales forecast you need to plan how much you need to do, where and how
In order to do this you need to work out each activity and the ratios associated with them to develop a Sales Activity Plan
Imagine that you sell and install burglar alarms at an average price of £500 and you have developed an annual Sales Forecast of £25,000
Therefore you need to achieve 50 sales per year
Therefore you need 2 x 2 x 3 responses to make 1 sale = 12 responses required to your advertisement/sale and you need to make 50 sales per year
Therefore you are looking for 50 x 12 = 600 responses per year to achieve the sales forecast.
This is approx. 12 responses per week!!
You now need to decide what promotion / advertising etc. you are going to put in place to achieve the response. There are 50 examples of possible promotional media in the section on 50 Ideas to Promote your Business.
Typical Response to Advertising / Promotion
Very often when we place an advertisement in the paper, or drop a flyer through the door, or send a sales letter to someone, we hope for a huge response - the typical response is 1-2%. This is because, unless there is an immediate need or want for your service or product, the customers reaction is usually:
"I haven't seen them before"
The second response to the advertisement can be even lower - because you satisfied those with the immediate need, or want, the first time. At this point many people become frustrated and are convinced they are advertising in the wrong place, to the wrong people, at the wrong time ... so we do not renew the advertisement after the third insertion. The response from prospective customers is
"I knew they wouldn't last"
Pointers to effective Advertising & Promotion
Little but often
Use available resources & knowledge wisely
Consider everything in context
Think the way your customer thinks
Consider format and shape when designing
Decide what it is that you want to achieve
Remember, the lower the commitment you are asking the prospective customer for, the greater the response will be.
For example, as the Home Security Sales person in the top example, if you were to ask them to send £500.00 and you would call and fit a Security System, the response would probably be Nil. If you were to ask them to send a £50.00 deposit you may get a better response.
If, however you were to ask them to telephone for a Free book on home security, the response would be greater and, at the end of the day, what do you want to do ... Find out who is interested in Home Security and in the market for a Security System. So you have to have them contact you - unless you take to door knocking.