This whole site was developed based on listening to episode 16 of the PreneurCast podcast and a lot of the content on this site is lifted from there (I hope they don't mind). I wanted to implement the 7 levers in my business so developed this in the hope it would also be useful for others.
To implement the 7 levers on your business you must know your numbers. These numbers relate to traffic, opt-ins, conversions, average sale value, average items per sale, average number of transactions per customer and your profit margins. To make this work you will need to know these numbers no matter how hard it is to see them. Once you have them, it will give you the ability to make better decisions about your business and better decide what to focus on to improve your business.
If you need help figuring out what numbers to look at and more importantly looking at those numbers in the right way, subscribe to the PreneurCast podcast and listen to episode 11.
Once you have your numbers, enter them in the fields on the 7 levers page and play around to see how changing just one of these by a relatively small percentage can make a big difference to your business.
This is the traffic that your business gets whether it is visitors to your website, customers to your retail store, people responding to a direct mail piece. It is the first level enquiry or first time traffic.
This is not just related to the online world. Online it could be someone who opts in to your newsletter but in the real world this could be someone who requests a quote or from a retail perspective it is someone who walks into your store to try on some clothes for example. Your opt-in rate determines the number of prospects you have. A prospect is someone who has come into your sales funnel and said yes, I want to be sold to.
Your conversion rate is the % of your prospects that turn into customers. This could be having a better proposal or having a standard sales process that you go through to convert a prospect or maybe an auto-responder sequence that take people through a sales process so then end up buying from you.
How much on average do customers spend when they purchase from you the very first time?
Rather than just selling one item can you work out a way to sell more than one item? What else can you sell them in an upsell process?
How many times do they buy off you in a certain period and can you make your customers come back and buy more regularly?
How can can you increase your margins? Simple ways to do this could be to increase your prices or reducing your costs.