Case study: How to increase your revenue by 150%
Market conditions remain tough but practices can increase profits by managing their clients better, argues Robert Craven in this case study of a real firm which recently upped its sales by 150%.
As people feel the full bite of the recession, the quest to survive puts more pressure on the need to find more and better clients. One key problem, poor sales performance, is simply more visible in difficult trading conditions.
Continued...
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Interesting numbers
Interesting numbers - apart from the 17% increase in the number of leads and a 10% increase in conversations from leads, the big drivers are the 48% increase in proposals from conversations and 32% increase in sales from proposals which is all down to how the lead is handled. But, it could also be down to being more agressive on price and being explicit about this in the conversation!
Ignoring the extra 50 leads and assuming a 25% net profit, £2,000 average fee and 7 years for average client retention - I calculate this firm has received and will continue to receive £150,000 in lifetime value per quarter from this work!
However, there are still some big gaps with 47% off conversations not going to a proposal and 47% of proposals being lost. It would seem some additional training on sales and crafting proposals would be a good place for the firm to re-invest some of the value.
By the way Robert, was your fee linked to vaule or was it based on X hours/days training?
This type of business analysis is what accountants can do really well to help their clients and add value to their service. It only takes a few minutes and accounts don't need to know how to improve performance, only to help clients see what the opportunity is.
If anyone is interested I'll put together a spreadsheet which you can use with clients. Imagine how clients would feel if you could play a role in improving their business by £150k a quarter and what this would mean for you? Email me at bob@portfoliomarketing.co.uk
Bob
www.portfoliomarketing.co.uk