- How much should you have in cash reserves? In standard
I was running into the grocery store to “pick up a few things.” I bypassed the carts and picked up a hand basket and headed in, armed with my small list of 5 items.
Fifteen minutes later, my “few things” turned into an overflowing basket that weighed 30 pounds.
As I stood in the aisle trying to figure out how to put just one more thing in my basket and, dreading the long walk to the front of the store, I grumbled to myself, “forget it.” I put the item back on the shelf and went to go check out.
It was a missed revenue opportunity for the store.
As I walked to the checkout it dawned on me, how much revenue did they miss because of the inconvenience of not having available carts throughout the store? I thought about how many people do the same thing– go in for a few things then stop buying because they can’t fit anything else in their basket.
It got me thinking–do businesses inadvertently put constraints on the amount that can be sold clients? Are there missed revenue opportunities that we haven’t thought about?
What constraints do we put on our businesses? Here are some things to consider about your sales and sales process to identify missed revenue opportunities:
- How easy do you make it for your clients to buy from you? Is it an arduous process? Are your services complex and therefore require your clients to be educated before they buy? If so, do you keep them engaged through the whole education process or do you lose them?
- Are your sales people responsive? Do your proposals clearly outline the benefits of working with you?
- Are you limited by your own internal capacity? Do you have a bench of resources available to you should the client be interested in expanding the services offered?
- How easy is it for new prospects to reach you? Does your web contact form work? Have you tested it recently?
- Are you pre-emptively seeking out what clients may need? Do you only offer them “baskets” and not have “carts” accessible should they need/want to buy more?
- Operationally, what are your constraints? Do you have processes in-house that limit the amount of revenue you can get from a client? Do you only review contracts annually? Do you only offer a limited amount of services or do you have resources you can refer or pull in to expand your offerings?
- Do you coach your staff to look for additional opportunities or are they putting their head down and only focusing on what you’ve told them to do?
The list can go on… but it’s important to stop and take an objective look at how you may be limiting your own revenue due to the constraints you inadvertently put in place. Are you only offering your clients baskets when, in fact, they need a cart?