5 Ways to Dramatically Increase Your Profit

TMH Business Coaching & Consulting

1. Capture Data on Leads & Clients (referral sources) 

Where did leads hear about your business? (Radio, Television, Facebook, Instagram, Phonebook, Referral, etc). Make sure your team knows this is the most VITAL marketing data and they MUST capture it, for every lead! When a lead becomes a client, make note of that, for our next calculations. 

Ask all leads and clients where they found out about your business and keep track in a simple chart like the example below:

How Did You Hear
About Us?

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Year Total

% of total

Google

5

12

0

9

16

8

12

7

9

16

8

12

114

12.87%

Facebook

10

11

3

4

7

12

9

10

11

3

9

15

104

11.74%

TV advertising

1

2

1

1

2

1

0

0

1

2

1

1

13

1.47%

Yellow pages

0

0

0

0

0

0

0

0

0

0

0

0

0

0.00%

Mailouts post office

2

1

3

2

1

3

2

1

1

2

3

1

22

2.48%

Instagram

1

0

3

5

1

0

2

6

1

3

2

1

25

2.82%

Twitter

0

0

2

1

3

1

2

1

5

0

2

1

18

2.03%

Signage

20

25

12

15

20

25

12

15

20

25

12

15

216

24.38%

Newspaper Ad

2

1

3

1

0

0

1

1

2

3

1

2

17

1.92%

Existing client referral

25

27

10

11

18

14

19

3

17

20

21

24

209

23.59%

Repeat Customer

10

9

17

12

8

16

10

9

17

12

8

14

142

16.03%

Radio

0

0

1

0

0

3

0

0

1

0

0

1

6

0.68%

Total

76

88

55

61

76

83

69

53

85

86

67

87

886

 

2. Measure and Improve These Key Marketing Numbers for each type of referral source:

  • Return on Investment (ROI) = income from spend ➗ spend

  • Cost Per Customer (CPC) = spend ➗ the number of customers who came from that spend

  • Cost Per Lead (CPL) = spend ➗ number of leads who came from spend

  • Conversion Rate = customers ➗ total leads
    (What percentage of leads became customers?)

3. Analyze and Improve These Numbers

  • Pricing: Look at the gross profit margins on products/ services to make sure they are not priced too low. Consider raising the price of products/ services, or decreasing the costs

  • Average Sale Per Customer: Upsell or cross-sell products or increase prices to increase your average sale.

  • Frequency of Purchase: Focus on getting current customers to shop more frequently, or develop a monthly recurring revenue model!

4. Measure and Improve Your Retention Rate

Measure and improve customer retention rate by:

  • Conducting surveys & implementing feedback

  • Hosting focus groups

  • Interviewing customers 

  • Reviewing internal processes to identify flaws

5. Turn points 1 – 4 into Key Performance Indicators (KPI’s) and watch the magic happen!!!

Turn the previous points, and other key numbers into KPIs for staff, and ensure you track them monthly: goal vs. actual.
Use your powerful coaching tools to get our team to help you hit those higher numbers, and in turn, make a much higher profit. 

Make sure you make a plan and put it in your calendar, to execute on these 5 points. If you’re already doing some version of them, make a plan to do them BETTER, because this is where the profit is!

 
If you feel you need some help increasing your profits, contact TMH Business Coaching and Consulting today for a confidential, free, no obligation consultation to propel you forward. Also, please feel free to add yourself to our weekly coaching tips email!

 

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