Most SMEs have a million and one initiatives and tasks to do.
It is easy to get carried away with tactical ideas and initiatives. It can be harder to take a step back and look at what value the ideas will bring to the business.
But with limited resources and time, being able to prioritise based on what the impact will be to the business is really important.
A useful way is to start with a top-down view of your business by looking at the different levels of your sales funnel, for instance: visits; quotes; sales; returning customers.
This is a great way to identify where growth can come from, for instance: by increasing the number of visits or increasing conversion on the website.
Using data in your business tools from web analysis, call systems and customer databases, you can populate the numbers and performance metrics to get a clear picture of how your business is performing which can highlight gaps and opportunities to focus on.
By building simple scenario models you can start to quantify the initiatives. E.g. what would turnover be based on increasing basket size for 10% of your customers.
This approach will enable you to identify areas of improvement, to focus your objectives and to align your ideas and initiatives to impact.
Often the first hurdle is defining the layers in the funnel, next is to identify and access the data to populate the performance metrics.
Today’s Tip: Build a sales funnel to articulate a clear view of the stages a shopper goes through to become a regular customer.
Get in touch if you need help with creating your sales funnel or building scenario models.