The secret formula for sales growth

It appears that what every entrepreneur aims for is an increase in sales. Boosting sales figures is widely seen as the key to increased profitability but beware – the two don't necessarily go hand in hand! Time and again, sales figures, if driven upwards in isolation, have failed to deliver the desired result, namely an increase in profit.

How then do you increase profits? You get more customers, right? Wrong! To take a narrow view by examining just one facet of business, namely how to increase the number of customers is a poor strategy. It is also the most difficult to implement effectively.

How else can you do it? I have isolated the undermentioned five factors that have the potential to make a positive contribution to your bottom-line.

Five factors that have the potential to make a positive contribution to your bottom-line 1. Leads
The quantity refers to the quantity of people you, or your staff, talk to in an effort to make a sale. Leads can be people who contact you in response to a marketing campaign or perhaps your sales force has established contract with them.

2. Conversion ratio
This is the quantity of leads you generate multiplied by conversion ratio is equal to number of clients you have.

3. The frequency of repurchase
This figure tells you how often someone who has bought from you ones has bought again. (If, for example, an individual buys groceries from a store seven times per annum, the purchase frequency would be seven)

4. The average transaction value
This refers to the average Rand amount that people spend every time they transact with you, to calculate the average transaction value, you divide the total annual turnover the business achieves over a year by the number of individual transactions the business has done over the same year.

The number of clients your business has multiplied by the frequency of repurchases they have made multiplied by the average value of each transaction equals the annual turnover of the business.

5. Margin

To sell goods or services without making a profit on such transactions would be pointless. The percentage mark-up on goods sold constitutes the gross margin.

This is very good valuable information. I think these stuff are the basis for each company.

In my opinion the the secret formula for sales growth includes following steps-:

1.Decide what you want.
2.Determine what your customer wants.
3.Results: By giving them what they want and need,you get more of what you want.