Would you like to double sales at your organization the easy way? When I help companies increase revenues, my clients always first focus on increasing the number of customers as the exclusive way to increase sales. The only way to double sales by increasing the number of customers is to double your customer-base. That is the hard way. Let me introduce you to the easy way with the 2X FormulaTM:
2X Sales = 1.26(Number of Customers) x 1.26(Average Sale Size) x 1.26(Frequency of Purchase)
This formula means that all you have to do is increase each area of your sales by 26%. Let’s break it down:
Increase Number of Customers by 26%: Let’s say that you have 100 customers today. All you need to do is increase the number of customers you have by 26, to 126 customers.
Increase the Average Sale Size by 26%: If your average transaction size today is $1,000, then you simply have to increase the average sale size to $1,260.
Increase the Frequency of Purchase by 26%: If your customers purchase on average one time per year, then you have to increase the frequency by 26%, which means your average customer purchases every 9.5 months.
If you can increase all three of those areas by 26%, you will double your sales. Here’s how the math looks:
(100 Customers) x (Average sale of $1,000) x (Purchase 1 time per year) = $100K in revenues
After applying the 2X FormulaTM:
(126 Customers) x (Average sale of $1,260) x (Purchase 1 time every 9.5 months) = $200K in revenues
This simple formula lays out for you the strategy to double your sales without breaking you and your sales team’s back. Don’t just focus on increasing the number of customers, increase the average sale size and the frequency of purchase as well. Then you don’t have to make drastic changes to any one area. Simply small tweaks.
Which of those three areas do you most have to increase in order to take your business to the next level? Please share below in the comments.
Marc Wayshak is author of the book Game Plan Selling and an expert on doubling sales.