Your Sales Growth Formula
Your sales growth formula (also known as a sales targeting strategy), is one of the most important parts of your marketing and sales efforts.
The reason it’s so important is because it’s crucial to get your product in service in front of the right prospects and potential clients.
In this article we’ll look at what sales growth formula is, the types of targets to set up and keep track of, and how to find your ideal clients.
Your Sales Growth Formula
What Is A Sales Growth Formula?
A sales growth formula is the process used to find out who your ideal clients are, and the step by step process to reach them so that you can bring awareness to your product or service.
Depending on what you’re selling, there are many different ways in which you could potentially reach them (which we’ll cover shortly).
Your sales growth formula is important because it allows you to put together a system to get the right type of exposure for your business; in which you can then connect with prospects and win more sales.
How Do You Find Your Ideal Clients?
The first thing to do when you’re selling a product or service, is that you need to niche out what kind of people will benefit from it.
Thinking anyone will benefit from it, and that everyone is your potential customer is one of the quickest ways at failing at sales and business in general.
The reason being is you’re only going to have so much advertising budget, as well as limited time to reach people.
By trying to reach everybody, the chances of burning your advertising budget greatly increases, and you won’t correctly resonate with your one type of ideal client.
‘If you try to serve everybody – you’ll end of serving nobody.’
By creating a niche, it allows you to focus and hone in your efforts on serving one type of prospect, so your messaging and brand aligns and resonates with that person.
Secondly, it allows you to focus your time, effort and ad budget on getting more exposure within that niche.
The first exercise we recommend you doing, is who would ideally benefit from this product or service and secondly; who would pay for this product or service?
Many people may love what you’re selling; but if you fail to target people who would actually afford it, you’ll be no better than prospecting to people who don’t qualify.
Document Your Ideal Clients
Once you have an understanding of the types of people or businesses that will buy what you’re selling, the next part of your sales growth formula is to list them down.
Once you have clearly documented who they are, you’ll then need to work out where they hang out.
They may be on Facebook.
Perhaps the qualified decision maker may be on LinkedIn?
Once you understand where your potential clients are hanging out (online or otherwise), you can start putting together what kind of marketing campaign you use to create awareness of your brand.
What Kind Of Marketing Strategy Should You Use?
Depending on what you’re selling and what kind of client you’re trying to attract; you may need to use inbound marketing efforts, or perhaps outbound efforts in your sales growth formula.
Inbound marketing is a system that brings leads to you; by using a sales funnel and marketing system.
Outbound marketing is the step by step system of reaching out to your prospects directly, using either cold calling, email, or direct messaging efforts.
To learn more about these two types of prospecting methods, click the related article directly below.
Related article: Two Types of Sales Prospecting Methods For More Sales
Targets For Your Sales Growth Formula
An important step in your sales growth formula, is knowing the following information:
- How much profit do you make on each product?
- The number of ideal clients you need to speak with to get a meeting
- The number of meetings you need to attend, to win a sale
- What is the lifetime value of a client? How long do they keep buying?
To increase your ratio of winning sales for every person you meet, you’ll need up to date sales training; particularly on following a consistent sales process.
The lifetime value of a client is important to know, because this will inform you how much a customer is potentially worth.
If they buy from you once, it may be expensive acquiring that person and not profitable.
However, if they continue buying from you again and again – it gives you more room to budget your advertising spend to acquire a customer.
A lot of people and businesses think that if it’s more expensive to get a lead than your product or service is initially worth – then it’s not worth acquiring the client.
However – if a client keeps buying again and again, this can quickly mitigate the initial spend of time and money to acquire them.
That’s why lifetime value is so important – it lets you know how much you can actually spend to make a profit, and dives deeper rather than staying on the surface about your actual budget to get a new client.
This is a crucial ingredient in your sales growth formula, because most of your competitors won’t be thinking this way.
Once you understand the above metrics, you can put together your sales growth formula.
Sales Growth Formula Metrics
Depending on what you have come up with numbers and metrics wise; the following may apply to you.
- How many daily sales do you need?
- Your weekly sales target?
- Your monthly sales target
- The number of sales needed per quarter
- The number of sales per year to hit your goals
Final Thoughts On Our Sales Growth Formula
Your sales growth formula is crucial for your business to succeed, because if your potential clients don’t know you exist, you won’t remain in business.
You’re better off having less people to speak with who are qualified for your offer, versus speaking to many people who don’t qualify for your offer.
To recap your sales growth formula:
- Identify your ideal clients
- Find out where they’re hanging out
- Choose an inbound strategy, outbound strategy; or both
- Measure how long it takes to reach contact
- What is the lifetime value of a client?
- Set metrics on how many sales you need by time frame