
Increase sales. Practical advice from a business consultant

In addition, when I conduct projects related to the organization of the accounting system, with the implementation of CRMand other software products, I also come across these issues. In the process of working on the project, I constantly communicate with business owners, with managers, heads of sales departments. I get a lot of information about how different companies conduct sales, how different groups of goods are sold, what methods of sales organization are used in this or that case, which ideas lead to success, and which decisions turn out to be unsuccessful.
When I was faced with the problem of increasing sales, I realized that these issues are poorly covered on the Internet. There are no normal sales materials. On the network, you will find either fantasies on the topic: how to increase sales in 14 days, sales scripts and other similar information, or various books on marketing and pricing, but they are not relevant for small and medium-sized businesses (this will help you with a book about how to increase Coca-Cola sales?)
In this article I decided to talk about tools that lead to increased sales. My advice is practical and requires organizational rather than financial costs, which is very important when revenue falls.
I will speak, first of all, about improving the efficiency of working with an existing client base. Searching and attracting new customers, promoting the company on the Internet and offline will be the topic of a separate article.
Some of the solutions discussed below will work comprehensively, i.e. will not only increase sales, but also attract new customers. But still this will not be the main focus of the article. Here and now I will talk about increasing sales.
All the ideas and solutions that I will talk about have been tested in practice by my clients. Nevertheless, I recommend that you carefully treat this or that advice and implement it taking into account the realities of your business. Some solutions are intended only for manufacturers; others are suitable for almost everyone.
Add value to your product.
If your company is engaged in the production of any product, then one of the solutions that positively affects sales is to increase the value of the product. In many cases, to increase sales, you can change the appearance of the product, for example, its packaging. And, as a result, the value of the product will change in the eyes of buyers.
An example of the implementation of the solution
My client’s company was engaged in the production of cheap clothes, which were sold in markets and in cheap shops. As a result of the analysis, it turned out that China was the main competitor of this company. Consumers perceived the goods manufactured by the company as Chinese, and the price of the products was slightly higher.
It is clear that clothing created in Russia cannot compete in price with Chinese. Even the fact that the quality of the products was higher did not save in the current situation, since the nondescript appearance of the goods together with the relatively high price reduced the interest of buyers.
We conducted an analysis of the product and its perception by customers. Consulted with dealers and sellers. And they came to a rather risky decision: they changed the packaging to a better and more modern one.
What have we done:
- Changed the logo, fonts, design. They made it bright, stylish, attractive.
- Choose another material. Instead of cheap plastic bags, they used high-quality cardboard packaging.
- On the package posted maximum information about the product.
As a result, the product, in the perception of customers, “fell out” of its usual price category. Thanks to the packaging, it has become perceived by customers as more expensive and of high quality. At the same time, the first time the price was not raised at all, and the real cost price increased quite a bit.
Thus, the product “disappeared” in the perception of buyers from a niche filled with Chinese goods, and the real price did not increase much, since the cost of cardboard packaging in terms of unit of goods was very small. Of course, I had to tinker with the introduction of the new packaging; in production any changes are associated with certain difficulties. But this is a separate story.
But thanks to the new packaging, there was a transfer of goods from one value category to another in the perception of customers, which became a real “springboard” to increase sales.
Quality work with the order.
For some reason, many companies still neglect working with a customer’s order. Of course, certain actions are being taken. The manager accepts the order, processes it, issues an invoice, then shipment is made, etc. At the same time, most of the small and medium-sized businesses, and I recall that I work with these segments specifically, do not work on order.
The sales departments of companies are somewhat reminiscent of stalls: what is available is what they sell. And if the requested product is not on the balance, the manager does not even offer to place the desired position “on order”. Most often this happens because the system does not have the necessary tools, and the manager simply does not know how to place such an order.
It would seem that the solution lies on the surface. Do not refuse customers! Offer not only analogues, but also the design of the desired product “on order”. Those. Your customer orders everything he needs. And the manager accepts the order and notifies the buyer about the delivery time, taking into account the deadline for receiving the positions that are not on the balance. All companies that implemented this system received a noticeable increase in sales.
In this case, I'm not talking about online stores that operate without a warehouse at all, i.e. only on order, regardless of whether they report this fact to their customers or not. I am talking about companies that have their own warehouse, but at the same time they can order goods from the supplier.
What is the problem of introducing such a work scheme? It lies in the fact that companies do not know how to technically implement it. Now I will give an example of how such a scheme was implemented by my client engaged in the wholesale of ceramic tiles.
All products are divided into two groups:
- The first is goods in their own warehouse, i.e. those products that you yourself ordered from your main supplier.
- The second is “alien” goods, i.e. those that can be quickly ordered from another supplier or competitor. This attribute “Alien” was filled in the product card to indicate products ordered from competitors. Also in the product card was indicated the supplier (competitor) from whom the product was purchased.
In this company, which sells imported goods with a long delivery time (from the time of the order to receipt of the warehouse takes about two months or more), a special system was developed when, upon receipt of the customer’s order, if the warehouse does not have its own goods, and until the next delivery another month, the manager can find out if a competitor has this product and order it. The manager includes this product (Foreign product) in the customer’s order with the designation For order (To security), and when the customer’s order is placed in the system, the order / orders are automatically created for the supplier / suppliers (information about suppliers is taken from the product’s card).
As a result, the client receives all the assortment he needs and continues to work actively with your company. He will not go to the competitor in search of the position he needs, because you have everything that he needs.
This approach significantly increases sales, and in many cases, profit grows insignificantly, because you buy goods in small quantities, possibly even from competitors, and therefore you sell some items with almost no margin. What is the point?
You get customer loyalty. Your customer does not leave, draws up an application from you, buys other goods along with a non-profitable “foreign” position. And you will notice an increase in profits from such a work scheme based on the results of a month, quarter, or any other reporting period. By increasing customer loyalty, sales and profits will increase markedly.
Sale of related (additional) services.
Many companies only sell products without any additional services. But often it is a service that helps customers make a choice in your favor.
For example, among my clients was a company specializing in the sale of cable products. At some point in time, they decided to introduce an additional service - cable laying. Those. In addition to the delivery available to all, they began to offer cable cutting on the spot, as well as its installation at the customer. As a result, not only profit increased due to the payment of an additional service, but also the volume of sales of goods.
What is the reason for such sales growth? Some customers of such products consider it a big plus to be able to order everything in one place: both the product and the service. They do not want to waste time searching for performers and cannot install (lay) the cable they need on their own. Those. in this case, customers reason as private buyers: “if I bought a sofa, I need to immediately assemble it, albeit for an additional fee.”
For some reason, many companies neglect this opportunity to increase customer loyalty, the attractiveness of products for new customers, as well as profit margins. In fact, selling services is a great way to increase sales. Do not forget about him.
Make the terms of cooperation softer.
Many companies work with their customers on very harsh conditions. Especially often this is committed by those who have been working in the market for a long time, often since the 90s, working with imported goods, with products that have no analogues in the market, and so on.
For example, I had a client who sold imported professional cosmetics for beauty salons, despite the fact that one can of money can cost from 17 euros or more, and in order for the dealer to get a 5% discount, it was necessary to complete a purchase volume of 2500 euros, and to get a 20% discount - 7500 euros. In addition, dealers committed themselves to buying and distributing magazines that no one needed. There were other requirements, often inconvenient and unfriendly to customers.
What has been done to increase sales in this company?
The company has reduced the threshold for receiving discounts. They did not make a one-time total discount or promotion, they made milder conditions than not only ensured sales growth, but also customer loyalty.
Those. to increase sales, you can simply soften the terms of cooperation. This is very important for your customers. The market is constantly evolving, competition is growing in all areas. Even if you trade in something exclusive and special, some analogues will appear on the market sooner or later.
For example, the client mentioned above sells goods for professionals in the beauty industry. The final consumer of its products was and remains private masters and beauty salons. On the one hand, professionals get used to the quality and features of a particular brand. On the other hand, if the price becomes too high or an analogue appears that will buy more profitably, they can reconsider their preferences.
Typically, customers who do not want to soften the terms of cooperation, bring the following arguments:
- We sell the best goods, we are the best and will work with us on any conditions.
- When conditions are softened, we may lose margin, as a result, profit will decrease.
But! It is better to lose 10 kopecks at a discount, but to earn 2 rubles, than not to lose these 10 kopecks, but also not to earn anything.
Synergy.
Synergy is the summarizing effect of the interaction of two or more factors, characterized in that their action significantly exceeds the effect of each individual component in the form of their simple sum. Wikipedia
What is a synergistic effect from a business point of view and what do I mean when I speak of synergy?
Many companies that work simultaneously with several areas, for example, sell goods and services that are in no way related to each other or weakly related, completely divide these areas up to the creation of different sites and different legal entities for each direction. Also, the sales departments do not interact with each other, which is a noticeable minus. What can be done in this case? Combine different directions under one brand.
Again, I give an example of a company whose activities are associated with beauty salons. This example is very convenient and illustrative, and therefore I often use it. This company has direct beauty salons, a training department, and a wholesale department for hair care products. And they all work independently of each other.
Yes, they work under one brand, but in fact they are not united: they have different unrelated sites, the culture or business process of transmitting information about the company as a whole and its divisions is not developed. It’s almost impossible to find out that there is training in the company to the client of the salon, just as the wholesale buyer will be able to find out about the salon and its services only by chance.
What have I done for this company?
The first and simplest is that all three units are combined into one site. Those. the person who visited the site sees all three areas of the company’s activities. This increases solidity, level of trust, and also informs people about certain additional opportunities of the company.
If, for example, a wizard visits a site in search of a product, then in addition to the assortment, he learns that you can always get training in working with these tools, and also evaluate their effectiveness by visiting a beauty salon. Similarly, the combination of directions has a positive effect in other cases.
Moreover, such a combination increases the level of trust in the company as a whole, as people see that the company is large, solid, engaged in several areas, etc. Also, experts from different directions began to recommend each other. Thus, a synergistic effect manifested itself, i.e. joint work of different directions has led to increased efficiency in each of them.
Start selling through the site.
Until now, many wholesalers and manufacturers of goods do not use their sites for direct sales. As a result, a part of potential customers is lost.
Even if you beautifully presented all of your products on the site, but there is no price next to the product, a person who finds you through search engines or clicks on an advertising link is likely to leave without a purchase or call. There is a rule: a product without a price is not a product. As long as a person does not see the figure of value, he can think anything. And not everyone agrees to call or send requests, especially since there are competitor sites with prices and convenient order buttons located nearby (in a search engine on adjacent lines).
Now I’m not talking about sales to the final consumer, the need for an online store is obvious there, I’m talking about selling in the B2B sector, where representatives of the commercial sector are looking for materials and products for their own business, and therefore they mostly look at the websites of manufacturers, dealers, regional representatives, etc. d.
What do they write on such sites? “Call us during business hours”, “Send a request for a price list”. But after all, a visitor may be on the site after hours or on a day off. Not all leave an application with a request, and not always. In general, many people, in the absence of price, subconsciously begin to suspect that they can be deceived here, and therefore try not to leave any contact information. Or they suspect that the price is not shown on the site due to the fact that it is too high. In any case, potential buyers leave the site without a purchase or application. And therefore - show your prices!
Often the question arises: if we are distributors, we start selling products through the website to the customers of our own dealers, will this interfere with the business?
No, it will not. First, you, as distributors, can set a single price. The main thing is that it should not be lower than that of your dealers. And secondly, you can add a page with a list of your dealers so that the client can decide whether to buy from you and wait for delivery from another city or select a supplier in your region.
Such a decision will even help increase sales. For example, if a buyer from Murmansk visits your site, in any case he will not order the goods from you in Moscow, this product will have to wait too long and delivery will cost a lot. Moreover, if he finds on your site the dealer’s contacts in his region, then the sale will take place, even at the dealer, who, in turn, will order more goods from you.
If you inform your partners in a timely manner that you put prices on the website, and also inform them in a timely manner of any changes in the pricing policy, this will not harm their business in any way. And if you invite your partners to post their data on your website, they will gratefully provide all the necessary information.
Do not forget that your customers and partners are, most often, small regional companies that are poorly represented on the Internet. And your site, most likely, occupies a leading position in search results, since you are a distributor. So, such an interaction will benefit both you and your partners.
Put prices on the site, develop your project, by brand name, it should be among the first in search results. Make sales through the site. And lay out the contacts of your partners. As a result, the number of sales will increase significantly, buyers will find your site and order goods either from you or from your dealers.
Another common concern: dealers will be opposed to you showing prices, as buyers on your site, after viewing prices, may themselves express a desire to become a dealer.
What can be said here? These concerns are dealers' concerns. For you, such interest from new potential partners is only a plus. Any business should grow and develop. And the potential threat that you can change the dealer in a particular region will stimulate your dealers to work better, develop more actively, sell more. The dealer will not go to another supplier, even if you have a buyer, and he has a competitor in his own region. And your business should grow.
Volume discounts.
Many companies assign discounts on a particular order, announce various promotions, but very rarely use discounts on the volume of products. Or they set a very high, one might say, unattainable threshold for obtaining such a discount.
Most likely, you yourself know this marketing law: with each unit of production purchased, the desire to buy from a client decreases.
Accordingly, the more he has already bought, the less desire he has to buy more. And the volume discount helps to overcome this psychological factor.
And here again objections arise: due to discounts, a part of the profit from the sale of goods is lost.
I remind you: in a falling market, the loss of a small part of the profit from the sale of a unit of goods is not the biggest loss. It is much worse if this product ceases to be sold at all or its sales are reduced.
And the volume discount encourages the buyer to order more. As a result, you completely compensate for the loss of profit due to lower prices due to increased sales and get a loyal customer, which from the point of view of business development is much more important than momentary profit.
Competent move - hire a "star".
Today, sales managers are in great demand. The number of vacancies in this specialty is huge. Moreover, very often businessmen offer their future managers a very low salary and more than a modest percentage of sales. Who will they be able to hire on such terms? How successfully will this specialist work?
In the conditions of a falling market, when the ability to sell is valued incredibly high, companies tend to save on sales managers.
Here is a paradox. And the reason for this paradox is banal greed. But do you understand that momentary greed does not bring anyone to good?
It should be understood that in most successful companies, a significant part of sales rests on one or two specialists who know everything about the goods, are able to find a common language with any client, and are able to sell at the "star" level. But these specialists are also much more expensive than an ordinary sales manager.
Do not skimp, hire such a "star" in your sales team. Believe me, the quality and volume of sales handsomely pay off all your costs for the purchase of the "star". Do not rely on a large number of cheap and weak sellers. It’s better to spend the same money on one really cool manager.
Yes, the "star" will have to pay a lot more. Yes, you will have to practice checking its level. Yes, there is always a risk of running into a swindler. But all these costs and difficulties will fully pay off when a real “star” appears in your sales department.
If you study the work of companies that have a strong sales department, then in almost every case you will see one or two cool “star” level specialists in this department. These “stars” can always tell colleagues a successful solution, they pull the rest along, help and train along the way. As a result, the entire sales team works much more efficiently.
As Elon Musk said: “Quantity never makes up for talent, and two people who don’t know something are no better than the same one.”
Therefore, you should not buy a lot of cheap employees, look for talent!
Accepting money through cards, online wallets, etc.
Oddly enough, but such an obvious plus as expanding the list of payment methods overlooks the majority of businessmen. I would like to remind all businessmen: we live in the 21st century, and cash payment together with bank or postal transfer are far from the most popular payment methods.
Today, Internet wallets, credit and debit cards are actively used in all areas, and in some cases even mobile phone accounts act as a source of funds. And the more payment methods available to your customers, the higher the likelihood that the purchase will take place.
Often, when refusing to connect to payment via the Internet, an argument sounds: “Why should I lose money (3-4%) when withdrawing funds?”
It's simple: in cases where a person for one reason or another cannot pay your bill within the specified time period, does not consider it possible to spend time and effort searching for a payment method convenient for you or does not want to pay for the goods in cash, the sale will not take place at all. And then you will lose not 3-4%, but all the possible profit from the sale.
For example, when placing an order through the website or by telephone, some customers seek to pay immediately, just to be sure that the goods are reserved and will be delivered on time. And if you can’t offer him a suitable payment method, the customer can go to your competitors.
One more example. Small companies often do not have terminals for payment by bank cards or card accounts for direct transfers from card to card. They work, as they did many years ago: they issue invoices that can be paid at the bank, or offer to pay for goods in cash.
I personally observed the work of one of these companies in the process. And what I noticed: some of the buyers came to them with credit cards. They were all sent to an ATM located nearby. But not all returned. The reason was that when withdrawing funds, these customers lost 2% of the amount. Their discount did not exceed 5%. And payment in cash implied the absence of documents. As a result, the discount no longer looked so attractive, and buyers went away to look for a better solution.
Accept as many forms of payment as possible! Your customers should be comfortable. Remember: it is better to lose 2 rubles on cashing 100 rubles than not to receive any profit at all. Yes, you will not lose anything, but you won’t earn.
Conversion increase.
In this case, the conversion is the conversion of your visitors in the office, store or website into customers, i.e. to the people who made the order and made the payment. And if you have a question about increasing sales, then you also need to increase conversion.
Have you ever wondered why many people show interest in your company, read information on the site, ask questions in the office or in the store and leave without buying?
But in addition to the objective reasons for this behavior, there are also your mistakes and shortcomings. For example, the lack of prices on the site. I already talked about this above. There are other errors that negatively affect the transformation of the visitor into a buyer.
I had a client who collected a record number of such errors on his website:
- He had as many as 7 phone numbers on his site. And not one of them was multi-channel. Therefore, all of them could be busy at one time or another. As a result, some potential customers left simply because they could not get through.
- Some of the goods did not have a final price. Those. the price of the commodity item was indicated, but it was constantly changing, and the website wrote: "due to the fluctuation of the euro, this price may not be relevant, call and specify the price of the goods." From my point of view, there is nothing worse than telling the client that we are selling to you inexplicably, what is unclear for what money, and let us call you back better. To increase sales, it is very important to sell at the price that was first announced to the client. Otherwise, the level of trust in you will fall catastrophically, and after it sales.
- A large period of processing the application. In some cases, it may take up to 2 weeks from the call to the answer to the client - when and how much he will receive the ordered goods! Naturally, during this time some customers were also lost.
What have I done to increase the conversion for this client?
The first step was to introduce electronic document management. Now, when an application was received from the site, it immediately entered the general base, a responsible manager was appointed for it, who was obliged to work with this application in a short time.
I also improved the quality of interaction between employees. There were many points here, I had to change a lot, in fact, the entire structure of the company has undergone changes to one degree or another. I also put things in order on the site, helped mend errors and make it easier for customers to access information.
As a result of the transformations, the number of requests from the site, as well as, more importantly, the number of purchases that have taken place, has increased many times with the same number of visitors to the web resource.
I recommend that you analyze and determine the points where your client’s failure can occur: a “falling off phone”, poorly speaking managers, an uncomfortable or uninformative website, high prices or harsh conditions for cooperation. Carefully work through these points, think over a loyalty program - and then the conversion will certainly increase.
Use all channels of interaction with customers.
Quite often, companies use only part of the possible channels to interact with customers and to search for new customers. For example, some work only through the site, others operate ads in Yandex.Direct and nothing more, still others work at exhibitions, and others use SMS mailing. In fact, they, like a drunken man in an old and well-known joke, are looking not where they lost, but where it is light, i.e. use only those methods that once showed a good result.
Use all the channels that are available to you. Tell your customers that you are running a particular promotion, reduced prices, new products have appeared and about everything that you consider important. Use all methods at once for this. Let it be news on the site, email and SMS mailing, leaflets and letters on paper, ads on the Internet, meetings, seminars, phone calls, etc. Do not neglect any of the possible channels of information. Thus, you will be able to reach the maximum audience.
Take orders online.
When I talk about the need to take orders online, I mean the B2B business segment. Until now, many companies have ignored the ability to receive orders over the Internet. In the best case, some forms are used in Excel and email. And most often all orders are taken over the phone.
The arguments of those who refuse to work online are quite the same type: “they don’t understand, they don’t want to study, we just spend time”, etc.
In fact, today Russia ranks 6th in terms of accessibility and prevalence of broadband Internet in the world. Most of your customers now have very good internet. And the ability to use online order forms is also very well developed. Therefore, do not underestimate your customers. Those of them who do not like the option of an online application themselves will talk about it and will always be able to traditionally continue to dictate orders by phone. And the rest will be able to leave a request online, at a convenient time, calmly and thoughtfully. At the same time, processing applications from your managers will take a minimum of time, which will allow more time and energy to devote to new customers.
Moreover, the ability to work online increases the loyalty of your customers. They will see your leftovers and the entire list of your products. They will be able to order more, view the complete list of products. While when ordering by phone a lot depends on the manager, on his knowledge of the assortment, on whether he will be able to offer the goods the client needs. And when ordering online, the client himself sees everything that you can offer him, sees prices, the cost of the order. Do not deprive your customers of such a convenient tool, check in practice: the introduction of an online order often increases the average bill.
Be always available.
Your availability at any given time is an important factor in increasing sales. I had clients whose phone was periodically unavailable, who did not always respond promptly by email, in some cases even the site was turned off for a while.
Your availability is a guarantee that you will not miss a single order. Let you not have missed calls on your phone and unanswered letters from customers in your inbox.
Another important point: correctly sort the mail! For example, my client had only one mailbox, to which all mail came without exception. The post was managed by a secretary. And she just did not understand anything in the assortment of goods, applications could lie in the box for several days without an answer.
After I studied the situation, we transferred access to the mail to the head of the sales department and turned off spam filters. On the one hand, the amount of spam in the mail has increased slightly. On the other hand, the sales department can always recognize a letter from a customer or potential partner, they will quickly respond to it. And disabling the spam filter ensures that no important email appears in the Spam folder.
Another client, whom I already cited as an example, indicated 7 phone numbers on the site. It looked something like this:
Wholesale Department:
Tel .: +7 (495) xxx-xx-xx
Tel .: +7 (495) xxx-xx-01/02/03/04/05
mob. +7 (495) xxx-xx-xx (works on Saturdays)
All these numbers are the working numbers of managers who constantly serve wholesale customers, that is, at some point in time, all numbers may be busy. Yes, and which of us will dial all 7 numbers without calling two, maximum three numbers?
Be always available and be sure to properly configure your mail, phone and other options for customers to access you! Do not miss anything important.
Remove the insider.
Today, many companies exist at the expense of another, larger company, in which the insider works. Those. an employee works in the sales department who regularly “merges” orders and clients of another company. This usually happens unnoticed, an insider can be very difficult to catch, even harder to blame.
For example, his reaction to a customer’s call may be: “At the moment, unfortunately, we don’t have the product you need, but you can contact this company, they are our partners, and they definitely have everything.”
Another option, the insider calls a deliberately high price, or simply reports that this product is not on the balance, despite the fact that it is available. At the same time, the manager has contact details of the customer: his mobile phone, which is displayed on the screen, other information received during this call or earlier.
All this information is transmitted to a competitor who calls the client and offers him exactly what he needs, while he is always ready to offer cooperation conditions more attractive than your company. Naturally, the customer makes a purchase where they called him and offered the necessary goods at a bargain price. As a result, you invested in promotion, worked with a client, spent time and energy, and a competitor gets profit.
How to calculate the insider?
- The easiest method is to ask friends you trust to call the number unknown to your employees and make a test order. Each manager will have to call. And determine after which of your calls your competitors called you back.
- If you are recording telephone calls, listen to the recordings of conversations of different employees. But as a rule, when recording telephone conversations, the insider acts very carefully.
- Protect your database. Carefully distribute customer data among your managers and restrict their access to information that they will not need in their work.
It is possible that there is no insider in your company, and your sales problems are in a completely different area. On the one hand, it’s not worthwhile to organize massive and regular checks with the tenacity of a paranoid. So you will only push previously loyal employees to dismiss and, possibly, to insider. But you should not lose your vigilance.
Conclusion
In conclusion, I would like to say what can not be done in any case: you can not arrange sales of goods. What is beneficial in the retail sector is seen as a weakness in the B2B sector.
The retail customer needs to consume now, because any promotions and sales attract his favorable attention. And the wholesale buyer is looking forward to the long term. And stability is more important to this client than the momentary benefit. Upon learning that you are selling goods or giving inadequate discounts, the client concludes that your company is “drowning” and will soon leave the market, so long-term cooperation with it will not work.
It turns out the opposite situation: you want to sell more at the expense of discounts and attract new customers, and as a result, on the contrary, scare away your regular customers who bring you the main income. Reporting a total price cut is seen as throwing a white flag.
In this article, I have listed, of course, far from all ways to increase sales. Here I chose the most common and simplest ones that do not require special expenses. These methods are organizational rather than financial. Therefore, they can be implemented in the conditions of the financial crisis and falling sales.
