We are in a time of strategic planning in which companies carry out projections of growth, income, costs and, above all, in which transcendental decisions are made for the future. However, unlike other occasions, this year the variable of “uncertainty” has been added, since, although there is speculation about the “exact” month in which everything will return to “normal”, given that large pharmaceutical companies have shown progress in the COVID-19 vaccine and even governments have published vaccination schedules, the truth is that everything can change unexpectedly.
In this sense, the best thing companies can do to plan is to take into account the numbers they can trust, that is, the numbers that depend completely from them, and design clear strategies around this.
Let's take an example as a basis to explain what we mean. Let's assume that the annual turnover of a company during the year 2020 was $1,000 and that said turnover has a component of 70% from current clients and 30% from unique projects.
In this case, the company would have to think that, for 2021, it has a hypothetically assured turnover of $700 and, if its growth goal were 20% over the 2020 billing, you should bill $1,200. This means you would have to come up with $500.
Now, how is that income achieved? At this point, there are two possible options:
- Acquire them through current clients, based on two actions:
- Retaining them
- Selling them more (upsell strategies)
- Acquire them through new clients, considering:
- Attract customers equal to the current ones with the same products and services
- Design other products and services to attract a new type of customer
Attracting new clients is and will be for all companies, the priority issue to be able to generate wealth, therefore, we must consider the following elements within the projections :
- The monetary objective (obviously the most important). With this number, calculations will be made to define an action plan.
- The average ticket. It is the data that will allow us to know how much value each sale we achieve will have and thereby calculate the sales we need to reach our goal.
- The closing percentage. It is important because it tells us how many businesses we close from the opportunities we generate (in the case of e-commerce, what percentage of people who come to the site make an online purchase).
- Cost per sale. This is a relevant point, since here we add the marketing efforts, the commissions in case it is a sale through a call center or a sales team and any other costs that are included to close a sale.
- Operational capacity. This information must be considered to know if our company has sufficient operational capacity to respond to requests for quotes, calls or anything that applies to the sales process. If we do not have sufficient operational capacity to attend to the number of monthly opportunities necessary to achieve the goals, it will be necessary to hire more resources and this leads us to modify our acquisition cost.
In addition to the previous points, it is important to take into account the temporalities of your product and service and be attentive to the needs of your users that the historical reality itself deciphers.
At Masclicks, we help our clients plan their strategies, considering each of the aforementioned metrics to develop strategies based on ROI.
Leave us your information!