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Improve Your Sales Profitability

5 Recent Examples Of Issues Impacting on “Profitability”

Over the last 2 months we have spoken with a number of companies who have all faced “profitability” issues. In working with them the following issues were identified as impacting on profits

  1. Response to a sales enquiry
  2. Complicated purchasing process
  3. Wasting money on ineffective marketing
  4. Poor / No management of existing customers
  5. Being a best kept secret

These issues are considered in more detail below

Improve Your Sales Profitability Blue Dolphin Business Development Ltd

1 Response to a sales enquiry

Low Profit Approach

  • No dedicated person internally to deal with sales enquiry
  • No response or acknowledgement when an e mail sales enquiry made
  • Complicated internal issues in costing and raising a proposal – leading to it taking 4 days to provide an initial response
  • No verbal communication

Improved Profit Approach

  • Automated response to initial contact acknowledging enquiry
  • Telephone contact within 15 minutes
  • Detailed added value information relating to enquiry provided within 24 hours
  • Follow up telephone call once information provided
  • Proposal provided within 48 hours
  • Follow up call once proposal submitted
  • Order gained (at desired level of profitability?)

2 Complicated Purchasing Process

Low Profit Approach

  • Lots of business jargon within initial communication “scored high on business bingo index”
  • Poor internal communication between departments (engineering design, purchasing, production, sales) in fact almost set up to be a sales prevention device
  • Complex bureaucratic internal processes – both time consuming and non value added

Improved Profit Approach

  • Very simple jargon free purchasing process – you could easily understand and progress whether you were new to the process or an industry expert
  • Highly coordinated team approach to sales (all prepared to talk to a customer if required )
  • No white knight mentality at all – the only thing that was important was dealing with the customer in a professional manner (and ultimately making a profitable sale)

3 Wasting Money On Ineffective Marketing

Examples of marketing wastage impacting on profits

Money spent marketing / promotional stuff is an investment that will ultimately help lead to profitable sales. If it doesn’t then it is simply a cost that will mean you need to generate additional sales to cover this cost.
Below are some examples of marketing wastage

Improve Your Sales Profitability Blue Dolphin Business Development Ltd
  • Google adwords campaign – incorrectly set up for geographic areas and negative keywords which led to over 75% of the spend being wasted
  • Attendance at an industry trade show – where 5 weeks after the event none of the prospects met at the show had been contacted
  • Committing to build a new website without actually knowing how well / badly the existing site was performing
  • Continuing to run an advert in a trade directory (cost over £500) when able to identify it had generated no enquiries
  • Sending an email campaign to a list of over 400 known contacts (had been previously stored on the companies internal ERP system) . Company didn’t feel it necessary to check the data and had a bounce rate of almost 45%
  • Company initiated a promotional campaign but didn’t set up the internal systems, processes and resources, which resulted in over 120 inbound phone calls being missed over a 5 day period

4 Poor / No Management Of Existing Customers

Low Profit Approach

  • Customer information stored in paper based system (invoices filed in number order)
  • New prospect information captured on post it / hand written notes
  • No set process for ongoing communication with customers / prospects
  • Difficult to prioritise or identify prospects / customers with greatest potential
  • Multiple spreadsheets, with multiple non coordinated duplicate information (in many cases not updated )

Improved Profit Approach

  • Very clear process for capturing information on prospects / customers
  • All information captured on a Customer Relationship Management system e.g Workbooks / Salesforce
  • Clear process for capturing customer information and proactively keeping in contact with them to
    • Maintain the customer relationship
    • Allow for up sell / cross sell opportunities
    • Ensure any changes within the customer / business are captured (change of people / change of requirements)

5. Being a best kept secret

Don’t be a best kept secret

If you are manufacturing a great product or delivering a fantastic service then its important (critical) that prospects / customers know about it.
The following are examples of how companies managed to avoid not getting found

  • Being invisible the web
  • Being reactive to “promotional” opportunities
  • Not having a promotional strategy or plan
Improve Your Sales Profitability Blue Dolphin Business Development Ltd

Being invisible on the web

Various research identifies that the web is responsible in 70% of buying decisions. Many companies fail to get found for obvious search terms that perfectly match the products or services they are selling. We have numerous examples of how we have achieved organic rankings for key search terms – where established companies have been unable to do this with their existing websites. For more information and to see case studies call Andrew Goode on 01733 361729 or email andrew@bdolphin.co.uk

Being reactive to “promotional” opportunities

Many companies respond to “advertising” opportunities by being targeted by publishing / media companies. This unfortunately means that promotional options are treated in isolation and are not co-ordinated or optimised. Ultimately this leads to activities that are both costly and  less likely to be effective.

Avoiding being proactive

Not having a promotional strategy or plan is a great way to avoid making / taking strategic actions to get found. Unfortunately many companies avoid being proactive simply through not assigning the time to strategic thinking. By not doing any marketing is a great way of avoiding extra work or profitable sales.

If you would like more information to improve your sales profitability and avoid making these 5 common mistakes or complete the form below. For more marketing information click here. 

To talk to a marketing expert please call Andrew Goode on 01733 361729 or click here

Being invisible on the web

Various research identifies that the web is responsible in 70% of buying decisions. Many companies fail to get found for obvious search terms that perfectly match the products or services they are selling. We have numerous examples of how we have achieved organic rankings for key search terms – where established companies have been unable to do this with their existing websites. For more information and to see case studies call Andrew Goode on 01733 361729 or email andrew@bdolphin.co.uk

Being reactive to “promotional” opportunities

Many companies respond to “advertising” opportunities by being targeted by publishing / media companies. This unfortunately means that promotional options are treated in isolation and are not co-ordinated or optimised. Ultimately this leads to activities that are both costly and  less likely to be effective.

Avoiding being proactive

Not having a promotional strategy or plan is a great way to avoid making / taking strategic actions to get found. Unfortunately many companies avoid being proactive simply through not assigning the time to strategic thinking. By not doing any marketing is a great way of avoiding extra work or profitable sales.

If you would like more information to improve your sales profitability and avoid making these 5 common mistakes please call Andrew Goode on 01733 361729 or complete the form below. For more marketing information click here

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