How to Increase Cash Flow
Not making enough sales? Do you ever wonder how you can increase your cash flow to your business?
There are 3 basic sales strategies to increase YOUR sales through strategic planning and customer service. Whether you are selling homes or hamburgers there are opportunities to increase sales and gain a loyal customer base by using these strategies in your business plan.
1) Increase Your Cash Flow By Increasing Your Number of Individual Sales
The first way to increase your cash flow is to increase the number of individual sales. Companies that sell products or services that are only needed every few years or once in a lifetime, like a new home, car, or wedding ring have to concentrate all their business activities on increasing the number of sales, because once a person has purchased one of these items, he or she is not going to be a customer in that market again for a long time.
If doubling your profitability requires that you double the number of sales of your product or service, then this becomes the central focus of your marketing, advertising, and strategic planning.
2) Make Larger Sales to Each Customer
The second way to increase your cash flow is by making larger sales to each customer. Once the customer has decided to buy from you, you must think of ways to increase the size of the sale and therefore the profitability and cash flow.
The good news is that, through customer service, once the customer has reached the point of liking you and trusting you enough to buy from you, he or she will be open to suggestions for increasing the size of his or her purchase.
Sometimes you can up-sell the customer to a more expensive item. On other occasions, you can cross-sell the customer by offering additional products or services that go along with the product or service that he or she has purchased. Use strategic planning to decide how to get your customer to buy more.
Take Care of Your Existing Customers
Because acquiring customers can be so expensive, you can give deep discounts and bonuses to get the customer to buy something else before they leave. You can cut the price on additional items by 10 percent, 25 percent, or even 50 percent to capture the add-on sale. The extra cash flow you earn is money that you would not have if you let the customer depart.
Learn how to become a better salesperson through better customer service by downloading my FREE sales report “Everyone is a Salesperson.”
3) Get Your Customers to Buy More Frequently
The third way to increase cash flow is by getting the customer to buy more frequently. If you sell a product or service that is used and consumed regularly, such as food, business services, automobile maintenance, barber and beauty services, or office stationery supplies, the key to business growth and extra cash flow is to capture more of the customer’s business.
Use strategic planning to aim for “depth of wallet” rather than for breadth of market. It is much easier to sell to a satisfied customer than it is to advertise, promote, and sell to a new customer. So, once you have created the customer, you must move heaven and earth to ensure that this customer buys from you again and again.
Ways To Add Value
Often, all that is necessary to increase the frequency of purchase is to add something extra that costs you nothing but that customers buying from you perceive as being of high value. You can follow up with a thank you note or a telephone call. You can offer the customers a special status with your company that gives them discounts or better customer service whenever they call or visit. What you can do to attract repeat business is limited only by your imagination.
You can increase the frequency at which they buy from you by offering another product or service, something that your customers purchase on a regular basis from someone else. Once you have captured the customer, you should direct all customer service efforts to sell the customer as many different products and services as you can, consistent with your business model, strategic planning and your area of specialization.
Take Action and Increase Your Cash Flow!
By using these marketing techniques in your field, you will be able to increase your cash flow, retain customers and gain many new ones.
Learn more about increasing your sales with my “High Performance Selling” program. I hoped you enjoyed my blog about using strategic planning and customer service to increase your profits.
If you enjoyed what you read, please leave a comment below and share this article with your friends.
About Brian Tracy — Brian is recognized as the top sales training and personal success authority in the world today. He has authored more than 60 books and has produced more than 500 audio and video learning programs on sales, management, business success and personal development, including worldwide bestseller The Psychology of Achievement. Brian's goal is to help you achieve your personal and business goals faster and easier than you ever imagined. You can follow him on Google+, Twitter, Facebook, Pinterest, Linkedin and Youtube.