When it comes to your business knowing your numbers is what is going to give you control over your business. It can show where to concentrate your efforts (ie. where the money is), and it can show you where not to waste those efforts.
Knowing your numbers is at the heart of any sales training. And sales is the heart of any business.
If you need to make 4 sales per week and your closing rate is 20%, then you know you need to talk to 20 people to make those 4 sales. That’s 4 people a day. There’s your goal – and your plan is based on how to get those 4 phone calls a day. All businesses come down to that principle in the end. You might do better one week than another – you might work to improve your close rate – but at least you will have a target to aim for.
So getting those phone calls is where the funnel comes in – and a funnel is everything about the numbers – because it is about getting people who don’t know you to a sale. As the diagram above illustrates, only 3% of prospects are ready to but right now, and only another 7% are open to the possibility. That’s 1 in 10. The rest need careful nurturing over time.
There are 4 stages to the funnel – Awareness > Capture > Nurture > Sale
Awareness – very often in an online business that means Facebook ads (but can include content marketing, social media, messaging campaigns, etc) .
Capture – is the freebie you get them to sign up for in exchange for their email address. This is where the marketing truly begins.
Nurture – the email drip campaign that educates and nurtures people towards >
The Sale – either via a phone call or ecommerce click
Using the 80/20 rule you can estimate how many calls you can generate in our analogy above – so –
1000 people see your Facebook Ad (Awareness)
20% sign up = 200 (Capture)
20% are nurtured towards a sale = 40 people buy the VIP Day
20% who come to the VIP Day go on to by the Annual Coaching Program = 8
Knowing these numbers gives you the power and direction. It is no longer guesswork. It becomes predictable. You know that if you pay $XX in Facebooks ads you will get 1000 views = 200 signup = 40 VIP sales = 8 Program sales.
This is a good benchmark – but in order to know what YOUR numbers are you need to actually run some promotions to find out. Do you get more than 20% – do you get less? What income is generated when compared to the costs of getting those sales?
Test it – track the results – see what can be improved to get better results next time. See what doesn’t work and that you can drop. You don’t start off with this knowledge. It is only through trying things out that you find out what works and what doesn’t. But when you find out those numbrs you re golden, because then you know that if you spend $XX you will get $XXX in return. It is predictable.
Facebook ads are a good analogy. You don’t just throw a lot of money at an ad you think is going to work. You try 4 different ads, test them all with a little money, see which one delivers, and only then do you put the big money into the winning ad.
It is exactly the same with your funnel and your sales process.
The ultimate goal in any business is to have a predictable income, and you can only do that by knowing your numbers. Why do so many people abandon their business and go back to a job? Predictability. With a wage you know how much is coming in – each and every week. But you can do that in your business as well – eventually.
Of course, circumstances change. What worked last year might not work this year. But if you are tracking your numbers you will see precisely where there is a problem – sometimes even down to a particular email. Knowing there is a problem allows you to take action to fix it before any lasting damage is done, and improv the process towards predictability.
If your goal is to make $100K then how many customers is that – per year – per month – per week? Where are those customers going to come from? How much does it cost to acquire a customer? What is the average lifetime value of that customer?
Knowledge is power. Knowing your numbers puts you in control of your business. You won’t know when you start out, but going into each promotion with numbers in mind will allow you to build on each new funnel you try, building on what works, discarding what doesn’t. Knowing where you are in terms of the goal you are trying to reach.
Knowing your numbers will set you free!
New Year’s is a bit like Christmas for Entrepreneurs. The old year is ending and a new year is starting full of possibilities. It is easy to set “all the goals” for your business. When I get into “kid in the candy store” planning mode… I like to rewatch this video from Jay Abraham about the only three ways you can grow your business.
In the video, Jay Abraham outlines the following three keys levers for business growth. They are the key to the funnels we build for our clients in Active Campaign.
Increase the number of clients, convert more new prospects into paying customers.
This is where most people focus their efforts though lead magnets, Facebook ads, and webinars. Unfortunately, this is also the most expensive part of the sales funnel and the riskiest. Yes, you need to be bringing people into your funnel, but you are leaving money on the table by not paying attention to the other two growth levers.
Increase the average transaction, get each client to buy more at each purchase.
Upsells can significantly increase your bottom line. Instead of just offering a class, you can offer extras ranging from checklists and trackers to bonus time with you. You can also increase your profits by strategically raising your prices.
We’ve helped several clients to increase their product launch profits both by adding purchases earlier in the funnel with inexpensive paid webinars and at the end of the funnel with strategic upsells.
Increase the frequency that the average client buys from you, get each customer to buy from you more often.
One of the easiest ways to make money in your business is to offer your customers additional opportunities to buy. For example, we had a client who sold olive oil. We added an email sequence that was sent to customers 2 months after their purchase (about when most people re-order) offering a discount on a new bottle. This sequence was very successful in increasing sales.
Would you like to see how this could work in your business? Contact us to schedule a brainstorming session today.
Lately, I’ve been talking to community members, potential clients and others who are firmly in the “the more eyeballs the merrier camp”. The idea is that if you can get your message in front of as many people as possible then someone is bound to purchase. This used to be true – especially when the number of media outlets were limited and it was impossible to really target down your audience too much.
At that point, advertising was REALLY expensive… because we were paying for many. many eyeballs we didn’t need to attract.
I remember running a radio ad campaign to recruit people to join a local government business growth program. Because the local TV station covered three states, we ended up paying for thousands of people to see our ads who never would be opening a business through our program. It was nearly impossible for small businesses to compete because they couldn’t afford to get in front of enough people to make enough sales to grow.
Social media has changed all of that. You can now target the smallest possible slice of ideal clients for you. Small businesses (and even solopreneurs) can 100% compete with large companies, they just need to be very clear on who that ideal client is.
And, in my experience, this is the part that people tend to skip. It is very tempting to jump straight into setting up that lead magnet and running those ads. The problem is that untargeted ads are expensive and ineffective.
You really need to create a Buyer Persona. I could go on and on about how having a clear sense of who your ideal customer is will help your business. But, I won’t. Sharon Woodcock did a great job of doing that in a great post on the 8 Reasons Why You Need A Buyer Persona.
1. Determine motivators: goals, fears, desires, values, and needs
2. Know what their needs are at each stage of the customer journey
3. Create an effective marketing strategy that feels authentic to you
4. Get better and more qualified leads, who are a great fit for you
5. Communicate in language that connects, resonates and converts
6. Differentiate yourself from your competitors, and stand out in a crowded market
7. Create products and services that fulfill your ideal audience’s needs
8. Create content and stories that align with the customer journey(Check out her post for how to get started on diving into your dream clients)
Have you created your ideal buyer persona? Who are they? Share them in our Solo Biz Hacker Facebook group 🙂
Q: How do you narrow down and target your ideal client when you love people and can see yourself serving in a lot of niches within your industry? (Holly – ESL Teacher)
From Wally Barr
Niche should be selected based on need and value. It will allow you to realize maximum results. Your service provides a value. That value is different to different people. Where is the most value (monetary) located? A lawyer or a physician that is not getting clients because of a language barrier will out a higher value on your service. The value of a lost client is higher to them. This is just an example. These high-value clients can also be niched with services. For the physician example, writing instructions or follow up care would be much needed. To expand this idea, a class instructing the staff in basic language needs would be a niche.
From Meg Manke, Culture & Leadership Strategist, Senior Partner at Rose Group International
I just found the coolest podcasting tool … it is ? love at first sight.
I had a podcast a few years back… we went to number one on New and Notable for iTunes… it was fun – but a TON of work…
Besides lining up guests, making sure they had a good mic set up, promoting the podcast, etc. – there was all the set up (getting your feed to work, recording your episode, posting it to iTunes, Pocket Cast, etc. )
It was a TON of work – and eventually, even though we were getting 1000 downloads a week – we decided it wasn’t worth it to continue.
And, when we decided to cancel our podcast hosting service which was costing us a lot of money, they didn’t have a way to give us the feed, so the podcast ended up being taken off of iTunes.
Recently tho, I found a free smartphone app called anchor.fm which completely simplifies the process.
✔ It takes about 15 minutes to set up your show… they take care of setting up all your feeds to iTunes, etc.
Once you are all set up, you just record by talking into your phone (the sound quality is awesome). Push done – you can add a background track and publish. The podcast magically goes where it needs to.
✔You can even interview guests through the app, have people leave messages, etc.
And… it is all free. Such a timesaver.
I’m using it for a quick 4 day per week podcast with a 2-minute business tip – here’s a link if you want to see what that looks like – https://anchor.fm/meredith-eisenberg
Let me know if you decide to do a podcast – I would love to listen 🙂
Recently, I asked a few of my mentors what would be their first step if their business dried up and they had to start again from scratch.
They ALL said that step one would be to start building their email list. That’s because no matter how the rules change in social media – your email list belongs to you. Even though there are many new ways to get in touch with customers including text messages, Facebook chat bots, etc. Email is still going to bring your sales over time.
It is never too soon to start building your list. Any work you put in now will be paid back many fold in the future.
That’s why I’ve developed this checklist so you can be sure you have all the right pieces in place.
Here’s what you need to get started:
An Enticing Lead Magnet
This could be an ebook, video, app, e-course or anything else that has the following characteristics:
A Compelling Opt In or Lead Page
Even though your lead magnet is free, people aren’t going to knock down your door to claim it unless you build its value. That’s why you need to create a lead page that persuades people to fill in your opt-in form.
Keep these tips in mind:
We really like Thrive Themes for lead pages.
A Reputable Autoresponder
Nowdays, it is fairly easy to find an autoresponder that will work for you without spending much money at first. Our two recommendations are Mailerlite (which is has everything you need to get started and is free up to 1,000 subscribers) and Active Campaign (which has more features than Mailerlite and is a good next step).
An Initial Autoresponder Sequence
Generally, this multipart sequence should promote your tripwire product. A tripwire is a very valuable yet inexpensive product. Keep these tips in mind:
A Commitment to Maintaining Your List
It does you no good to go through all these steps if you don’t intend to email
your list regularly. So, commit to emailing them on at least a weekly basis, and you’ll see your list profits grow!