3 Reasons from a digital perspective on why businesses fail.
1. Failure to spend your marketing budget wisely.
Where do you spend your marketing budget?
The money you spend to generate sales needs to be spent wisely. Where are you spending your marketing budget.
Stop spending your marketing budget on old traditional forms of advertising that don’t produce measurable results. Companies keep investing or should I say wasting money on flyer drops, newspaper adverts, magazine half, full or double page adverts only to never find out how many people are actually reading their adverts. On top of that it is ridiculously expensive.
Just imagine for a moment how many people you could have visit your Website to view full information on your product / service for a fraction of the cost that you would have spent on traditional advertising. If only you had rather just spent one tenth of that wasted money on Google Adwords Pay Per Click advertising. You could have had dozens or even hundreds of potential clients visit your website per day for a fraction of the cost ! Your results would be measurable and your website if setup correctly with a call to action would lead to new hot sales enquires.
Most of your customers spend half their day on Google, Facebook and other online platforms. That is where you should be advertising because that is where your customers are “hanging out”. According to a recent article, 77 percent of people take the time to read product reviews before they make any purchases online.
What do you spend money on to bring in sales each month
What are your running costs & how much of it is spent on a sales employee?
2. Money Wasted On Under-performing Sales Staff
How much do you spend in time, training, desk space, office space rental, IT & other equipment on 1 sales employee? What is your return on your investment and when will you realize that return? Probably only from month 3! This means you are going to be spending roughly 3 months worth of salary and other overheads on getting the person into a position to begin bringing in sales leads.
The average sales staff salary is around R18,000.00 p/m. Imagine that money spent elsewhere, like on your daily Google Adwords budget. That money split over 30 days per month on average is R600 per day that you could allocate towards Google Ads which is were most of your target market are spending their time looking for you in the first place.
Since you have wasted 3 months plus 2-3 months finding the right person, you can safely multiply that R600 per day by 3. Imagine how much traffic you could send to your website if you spend even half that R900 on Google Adwords. Do you think that would bring in sales leads?
3. Lead Response
Make sure you have a well oiled back end sales process.
Once your leads do come start to come in, what do you do with them and how soon do you do it?
Most people will search for 3 quotes before choosing what to buy and who to buy it from. If you do not reply to your requests for quotation, if you do not answer your phone when it rings, if you do not respond to your e-mails requesting a call back immediately, you can consider the sale lost to one of your competition who did respond immediately.
Make sure you do the following:
- Setup your website and your inbound e-mail address with a friendly auto responder.
- Phone the lead immediately. Not in half an hour or the next day or next week but immediately! People like that!
- Reply with a follow up e-mail confirming what was discussed.
- Get them that quote as quickly as you can. They may be asking 3 other companies for quotes. If you get in first you are 50% sure to get that deal if the price is right and you have the right product / brand they are looking for.
- Follow up within 24 hours if they did receive the quote and if they need any further information or if they would like to do business with you.