Key Turnover Drivers
Every business can grow profits and improve stability by focusing on the Key Turnover Drivers. These FIVE key factors, when used as part of your integrated approach to marketing, can produce a significant uplift in results on your bottom line.
Here’s a quick snapshot of how they work:
1. Get More Customers – everyone knows that simply attracting more customers to your business is a surefire way of increasing turnover and profits. However, the big myth is that this is the only focus for your marketing activity, not so. This represents just one part of a bigger plan. It is a good place to start though, and with good training on the fundamental principles of marketing you can learn how to increase these results.
2. Get Customers to Buy More – every good sales person has been taught the value of up-selling and cross-selling. This is the ability to invite the customer to buy more at point of sale. This could be selling a parallel product or service, which is related (or not). You should also always have an up-sell ready to offer and be able to demonstrate the additional value to the customer.
3. Get Customers to Buy More Often – you’re working hard to produce a result in your marketing, you want to get more (prospective) customers to seek you out and buy your products/services. However, the key driver here is to find a way to ensure that customer comes back and buys from you again, and again. You could just have a product/service that the customer is only likely to buy from you once. In which case, create or identify an secondary reason for them to come back to you, time and time again.
These three main Turnover Drivers can be summed up in one very simple way…
“Get More Customers, To Buy More, More Often”
The remaining two Turnover Drivers focus on the Profitability of your product or service:
4. Increase Profitability – there’s a very simple way of doing this; increase the price! You may think that this is impossible and it may be true that your customers have become price-sensitive. In some industries that is very much the case. So the first rule is DO NOT SELL ON PRICE. Customers do not buy on PRICE they buy on perceived VALUE. So how can you increase the value of your product/service and so increase the price you charge?
5. Reduce Waste – this is the final of the five Key Turnover Drivers. However this one is an anomaly because it is the only one of the Turnover Drivers that cannot be grown exponentially. There is a finite limit to reducing waste, where as your marketing can be scaled up. Cutting out waste is a fast way to control profit. Are you paying too much for your raw material, labour costs, energy, packaging, banking, accountancy, business insurance, etc. All of these are a drain on your profits, reduce these and your business WILL make more money.
Now, here’s the best part. If you take just the first three Turnover Drivers and increase each by a factor of 10%, which is very achievable for most businesses, the compound effect of this is to create 33.1% on your bottom line.
If you want to know how to apply this and see the actual results, you can use the PUSH Turnover Driver Calculator we’ve created. This is a simple Calculator driven by Excel and shows you the results you can generate when you focus on the Key Turnover Drivers.
If you want to learn more about this powerful principle (and others) then seriously consider attending The PUSH Academy Foundation Course on Marketing, where you’ll learn about the practical mechanics of good marketing and business.
We’d like you to take a look at this and see how Turnover Drivers can be applied in your business. So we invite you to access your free copy of this highly useful tool. All we ask is that you subscribe to The PUSH Academy. We will send you an email (no more than once a week) on other useful and highly valuable marketing tips and of course, you can unsubscribe at any time. We fully respect and protect your data and your details will never be shared with any other party.
Please Note: this Application is the Copyright of The PUSH Academy and is not to be redistributed, shared or adapted.
To download our Turnover Driver Calculator simply fill out the form below and you will be e-mailed the password:-
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This Turnover Driver Calculator was designed and supplied by ‘The Spreadsheet Man’, Michael Holness; a high-recommended supplier for all Excel needs! Visit www.thespreadsheetcompany.co.uk