Driving revenue is one of the pillars to a successful business. One of the main tools used by business owners is their marketing and sales model, the better an owner understands what it takes to drive the revenue needed to operate the business they want they can then work on improving the model.
An example is a typical CTi Dealership which works on the following model:
For every six leads generated by their advertising…
They will have four appointments to meet with the homeowner…
They will sell one of these four appointments on average.
As you can see, once you understand the basics you can work on improving things such as:
How can we generate those six leads for less money in advertising or
How can we generate more appointments from the leads we are currently getting or
How can we generate more sales from the appointments we are going on.
As you can see there are numerous ways to look at this model and find ways to improve it. Better marketing and sales leads to higher revenue generation and better profitability and is one of the key factors in being a successful business owner.