More market success through intelligent sales strategies

More market success through intelligent sales strategies

Entrepreneurial action without a strategy – isn’t that like rowing a ship but not knowing where to go? Companies that are on the road without a long-term and integrated corporate and sales strategy are navigating blindly through the fog. With these recommendations from our guest author Prof. Dr. Peter Winkelmann you build a long-term and intelligent sales strategy …

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Sales strategy and customer care – How to strengthen your customer base

Sales strategy and customer care - How to strengthen your customer base

“There are no longer any regular customers,” the owner of a traditional shop in downtown Landshut told me recently. And another specialty shop closes. This can happen to any company when markets change, their own products are no longer competitive, customers drop out or competitors constantly nibble at their own customer base. You should therefore cherish and care …

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Referral Marketing – Tips for Successful Customer Support

Referral Marketing - Tips for Successful Customer Support

Customers attract customers – this is probably the recognized most cost-effective form of advertising for your own company. Blessed are those who have friends who advertise for their suppliers or even act as salespeople. What sounds so simple has a number of pitfalls when it comes to implementation. With these tips you can take the step towards systematic …

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These 5 signs will tell you it’s time for a CRM change

These 5 signs will tell you it's time for a CRM change

It could be so nice: The CRM software bundles information centrally and transparently. She supports employees from all departments to always be up to date and to offer a positive customer experience. The processes are clearly regulated and everyone works hand in hand. That’s the theory. Unfortunately, the reality in many companies is very different. If all your attempts to …

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This is how good customer service works

This is how good customer service works

Good customer service strengthens the bond between customers and your products, services or brand. But what is good customer service and how can it be improved in the company? What is customer service? Customer service, customer service or often also called English customer service, means all services that a company provides to satisfy its customers. This includes …

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Digitization of the working world – How to use the crisis as an opportunity

Digitization of the working world - How to use the crisis as an opportunity

Virtual collaboration, the majority of employees working from home, digitization of the working world – what would have sounded like the New Work dream in 2019, this year presented many companies with major challenges overnight due to the Corona crisis. And not only everyday office life has changed: Consumer behavior is changing. Sales, marketing and service …

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How does good complaint management work?

How does good complaint management work?

“A company that is totally dedicated to service has only one concern about profits. They are embarrassingly large.” Even then, Henry Ford recognized the importance of good service quality. In many companies, however, there is still a lot of room for improvement when it comes to complaints management. Searching the website for a hotline number, waiting forever on hold, …

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Target group analysis – This is the best way to proceed

Target group analysis – This is the best way to proceed

In order to be successful in the market, your product or service must meet the needs and wishes of your customers. You also have to address the right target group with the right advertising measures. A target group analysis helps you to find the right target group, identify their needs and find the right approach for your …

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Sales controlling – key factor in sales

Sales controlling is the heart of successful strategies, processes and measures in sales. Controlling allows you to plan and control sales development based on facts. It also supports the most efficient use of resources in sales and marketing. For this purpose, relevant key figures must be available and also correctly analyzed and interpreted. What is sales controlling? Sales controlling is part of corporate controlling and is responsible for monitoring, evaluating and controlling sales processes and activities. It checks how well the sales strategy has been implemented and sales targets have been met. Using the data from sales controlling, sales measures and strategies can be continuously optimized. What are the tasks of sales controlling? One of the most important tasks of sales controlling is the targeted control of sales. Controlling provides structured information in reports, evaluations and recommendations for the sales strategy as well as sales and marketing measures. The areas of responsibility of controlling can be strategic or operational. Basically, the tasks of a controller in sales depend on the industry, company and products. The 5 main tasks include: coordination, planning, information, control and management. Specifically, this can include, for example: Information acquisition and information evaluation Analyze sales strengths and weaknesses Market and competition analysis customer analysis planning and budgeting Analysis of the products and services offered Evaluation and optimization of sales processes, strategies, measures and channels risk management Strategic and operational sales controlling It is often divided into strategic and operational sales controlling. Strategic sales controlling identifies potential for success, plays a key role in setting goals and strategies in sales and ensures that goals are achieved. Operational controlling focuses on short and medium-term planning, control and coordination and is primarily concerned with the implementation of measures . Why sales controlling? Controlling in sales focuses on the collection and analysis of key figures, which you can use to measure the success of your sales strategy. Only if you collect the right data and measure and analyze key figures (KPIs) can you determine which sales strategies and measures are actually successful. In this way, you can continuously optimize them and ensure the success of your company. In addition, the efficiency of the sales process is checked in sales controlling and potential for optimization is also identified here. What are sales metrics? Key sales figures are primarily result-oriented Key Performance Indicators (KPIs), German core target values, which are taken into account in operational and strategic sales controlling. Important key figures are: Sales (e.g. sales, sales development) Contribution margin (e.g. product contribution margin, customer contribution margin) Customers (e.g. conversion rate, customer satisfaction, customer retention rate, customer lifetime value, customer churn rate) Conversion rate The conversion rate indicates what proportion of the leads in the sales process are raised to a further phase or ultimately become a buyer. Acquisition (e.g. number of customer contacts) Orders (e.g. order intake rate, average order value) Quality (e.g. complaint rate, cancellation rate) Controlling in sales often plays a greater role in companies than in other areas of the company. This is partly due to the fact that variable remuneration systems are used, especially in sales. This means that the results from controlling have a direct impact on the level of remuneration for the sales staff. Tools in sales controlling In addition to measuring key figures, there are various methods and instruments in sales controlling. benchmarking Benchmarking refers to the continuous comparison of a company, or the products or services, with its strongest competitor. What is important here is continuity, being able to constantly improve sales goals and activities. There are three types of benchmarking: shadow benchmarking A comparison is made without the respective competitor knowing anything about it. The disadvantage is that this also means that less information is available for comparison. Functional benchmarking With functional benchmarking, only certain areas, such as departments or work processes, are compared. Therefore, comparisons can be made with companies from other industries and best practices can be adopted. Internal benchmarking Comparisons within one's own company are called internal benchmarking. For example, different departments or locations can be compared. Customer value management In customer value management or customer value management, the value of individual customers or customer groups is calculated for the company's success. The segmentation of customers according to their potential helps to optimally allocate limited resources. For this purpose, it is helpful to carry out a customer evaluation , for example using an ABC analysis, and to determine the Customer Lifetime Value (CLV). Key Account Management The results from Customer Value Management can be used in Key Account Management. What are key accounts? Key accounts are customers who have an above-average value for the company's success. Key accounts have a special position in the sales strategy. You will receive exclusive support and additional services such as discounts. This is intended to increase customer satisfaction and loyalty. The aim is to turn the most valuable customers into regular customers. Sales controlling must check the profitability. Product Life Cycle Analysis A product life cycle analysis analyzes the development of sales, profit and sales of a product over the course of its life cycle. This allows you to create sales forecasts and align the sales strategy with the sales trend. GAP analysis The GAP analysis (German gap analysis) is a target/actual comparison between the planned and the actual KPIs and goals. The gap between planning and reality is called GAP. The analysis determines the strategic gap between the target planning and the best possible result, and the operational gap as the deviation of the real result from the optimal activity. Portfolio Analysis In a portfolio analysis, offered products are divided according to their phase in the life cycle and their market share. This results in product types that have to be treated differently. The most well-known form of portfolio analysis is the Boston Consulting Group's four-field matrix. This divides the products into four types: portfolio analysis Question Marks Question marks are products at the beginning of their life cycle. In order to develop them into a successful product, "Stars", constant investments are necessary. If the product cannot assert itself on the market, it becomes a “poor dog”. stars Stars are profitable products with a high and growing market share. Here, too, we continue to invest steadily in order to exploit the full potential and further increase market growth. cash cows Cash cows also have a high market share, but in contrast to stars, they have low market growth. These products generate the most sales, as only a small investment is required to ensure the product's success. Poor Dogs Poor dogs, shopkeepers so to speak, hardly bring any more cash flow for the company. They should be discarded as quickly as possible or optimized for a relaunch. Sales Reporting Reporting is the evaluation from sales controlling. All relevant key figures collected by controlling are evaluated and placed in the respective context. For example, the comparison to the previous month or year. Regular reporting plays a major role in sales. The results are not only used to optimize measures and strategies, but also to calculate sales commissions and bonuses. Sales controlling in CRM Effective sales controlling relies on accurate and comprehensive information and data. A customer relationship management system provides this information. However, CRM solutions not only offer extensive data, but are a tool for analysis and perform calculations in real time. E-Book Excel Reliable sales forecasts When it comes to sales forecasts, rely on facts and figures. Structured opportunity management in CRM makes sales opportunities more transparent for all employees and allows them to be tracked and evaluated efficiently. Targeted analyzes and a uniform database allow more reliable sales forecasts. In the CRM, you receive detailed evaluations of where further sales potential lies. Sales forecasts are calculated and created directly in the CRM system. Forecasts in the sales pipeline With the help of artificial intelligence, CRM solutions determine the potential customers with the highest order probability. This allows your employees to focus on the most important prospects, devote more time to customers with purchasing power and make optimal use of your sales resources. In addition, CRM solutions also display your sales funnel visually. You can see at a glance how many contacts, leads and customers are currently in which phase. You can also view the conversion rate. This indicates what percentage of the leads develop from the current to the next level. By controlling the conversion rate, you get insights into which phases in the sales process should be optimized. Information about prospects and customers Probably the first thing that many people think of when they think of a customer relationship management system is data on interests and customers. Who are your best customers? What percentage of your customers are repeat customers? Which customer groups are interested in which products? These are just a few examples of data that you can evaluate quickly and with just a few clicks in CRM. The CRM gives you a 360-degree view of your customers. Which key figures are interesting for sales controlling and should be evaluated in CRM depends on the company, products, industry and sales process. In order to receive the best possible support from a CRM, customizable standard platforms are best suited. This is also shown by the CRM study 2021. The big advantage here is that they already offer a good standard and can also be adapted to your sales process. This enables you to achieve the greatest possible efficiency in sales controlling. CONCLUSION: Conscientious sales controlling is a key factor for successful sales In sales, it is important to be able to react quickly to developments in order to keep customers or win new ones. Through continuous sales controlling, you can continuously optimize your sales strategy and measures. It is an important success factor in selling products and services. Professional CRM systems make controlling easier and make the relevant data available to each of your employees.

Sales controlling is the heart of successful strategies, processes and measures in sales. Controlling allows you to plan and control sales development based on facts. It also supports the most efficient use of resources in sales and marketing. For this purpose, relevant key figures must be available and also correctly analyzed and interpreted. What is sales controlling? Sales …

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What is upselling?

Generating more sales is probably firmly anchored in every corporate strategy. In order to achieve this goal, companies need well thought-out marketing and sales measures. With upselling and cross-selling as sales strategies, you can increase profits with your existing customers. What is upselling? And what do you have to consider? What is upselling? Upselling describes a sales strategy in which the customer is convinced to buy a higher quality product. As a result, the customer spends more money than planned and the retailer generates higher sales. An example of this is the offer of various mobile phone contracts. If a customer is interested in contract S, for example, he is offered a contract M which, for example, contains more data volume and is more expensive. What is the difference between up and cross selling? While upselling tries to sell a better, more expensive product, cross-selling focuses on selling additional products that match the main product. To stay with the cell phone contract example: With cross-selling , cell phone insurance is offered in addition to the contract, for example, or a suitable case for the selected model is also offered when a new smartphone is purchased. In practice, the two sales methods are often combined. The dealer offers the customer both higher-priced and additional products. What is down selling? If one speaks of cross-selling and upselling, one speaks less often of down-selling or a down-sell. What is meant by this is the active recommendation of a cheaper product. The retailer advises the customer to downsell a cheaper offer instead of the intended product. The aim here is to find exactly the product for the customer that meets his requirements. If a cheaper product better suits the needs of the customer, then you should recommend it to them. Even if you may initially make less profit as a result, you will strengthen the bond and trust you have with your customers in the long term. Why upsell? Acquiring new customers is not easy these days and often expensive. With a well thought-out upselling strategy, you can increase sales with your existing customers. Customers who have already bought from you are already positive about your brand and your products. As a result, you are more easily persuaded to buy a more expensive product or service. Used correctly, upselling increases the average purchase value and increases profitability. What are the benefits of upselling? Increase Sales Higher priced products usually have higher margins, so upselling can also increase your profits. Exploit customer potential to the full Existing customers who are already convinced of your products are more easily persuaded to buy higher-priced products. Savings when acquiring new customers With upselling, you are not dependent on winning new customers, but increase sales with your existing customers. Increase in customer satisfaction With upselling you create a win-win situation. Your customer feels well advised and enjoys the high-quality product, while you generate more sales. What are the risks of upselling? Upselling carries the risk of appearing too intrusive to the customer and ultimately angering him. If the customer does not feel well advised or understood, it can happen that he breaks off the purchase process completely. Another risk is the budget. If the new offer significantly exceeds the customer's available budget, this can also be a reason for the customer to abandon the purchase. Upselling should therefore be used with caution. The focus of the consultation should always be the customer and his needs. If the higher-priced offer can be well argued and has a comprehensible added value, the chances of making more profit are good. Tips for successful upselling To avoid taking unnecessary risks when upselling, there are a few things to keep in mind: 1. Maintain customer relationship Before you begin, you should make sure your customers feel positive about you. The satisfaction of your customers is crucial for a successful upselling. 2. Respond to customer needs You know your customers best. Use this knowledge to get good advice. Respond to the wishes and needs of your customers. Show you products that fit your needs and offer choices. 3. Stay factual and friendly Don't be too pushy. Convince with your competence and objectively argue the advantages of the higher-priced product. If you react too emotionally or act too aggressively, this can scare off your customers. 4. Give suitable product recommendations Use your customer data for product recommendations. If you have saved your customer data in a CRM system, you can access relevant data centrally and view possible upselling and cross-selling potential directly in the system. CRM Newsletters 5. Choose a well thought-out sales strategy Is cross-selling or upselling more profitable? Before you decide on a sales method, calculate which is more effective in the specific application. 6. Eliminate concerns Take your customers' doubts seriously and take steps to reduce them. A free trial period or a money-back guarantee can be advantageous here, for example. Conclusion: Increase sales with upselling Upselling is a valuable sales strategy that can help you generate more sales from your existing customers. Used correctly, it brings added value to both your customers and your business. Use tools such as a CRM system to uncover unused cross-selling and upselling potential and to offer your customers the best possible advice. This will also increase your customer satisfaction in the long term.

Generating more sales is probably firmly anchored in every corporate strategy. In order to achieve this goal, companies need well thought-out marketing and sales measures. With upselling and cross-selling as sales strategies, you can increase profits with your existing customers. What is upselling? And what do you have to consider? What is upselling? Upselling describes a sales strategy in …

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