4 Mistakes That Kill Sales
 By Stephen A. Lanvil

As a startup, you can’t afford to lose even one small sale. Every dollar of revenue is critically important.

Yet many novice business owners make simple mistakes that can kill sales, reduce revenue and slash profits.

Here are four mistakes you might be making—and actions you can take to solve the problem.

Mistake #1
Failing to follow up
Follow-up keeps customers engaged. It reminds clients why they chose to do business with you. It cements the long-term relationship between a seller (you) and a buyer (your customers).

Follow-up leads to repeat sales. And sales to returning customers are easier to make than sales to new customers.

So, if you’re not following up after a sale, you’re missing out on all of those benefits.

Following up doesn’t have to be complicated or time consuming.

You can make a phone call and ask clients if they’re completely satisfied with the product or service they purchased. You can drop a short letter in the mail thanking customers for doing business with your company. You can send an email that includes a discount coupon on the customer’s next purchase.

Mistake #2
Not asking for a referral, recommendation or review
It’s called word-of-mouth marketing. And it’s one of the best ways to boost your sales.

The problem is that many startup entrepreneurs simply don’t ask their satisfied customers to spread the good news. But, there are plenty of ways to get your clients to tell others about your business.

• Ask clients to post reviews of your products or services at online review websites such as Yelp.com and Kudzu.com.
• Ask customers to give you the names and contact information for two or three other people who could potentially use your products and services.
• Create a profile on LinkedIn. Generate a contact list. Ask your best contacts for a recommendation that you can post on your profile.
• Request a written testimonial from satisfied customers. Post those testimonials on your website. Reproduce them in your marketing materials. Use them in your sales letters.

Mistake #3
Not tracking the results of your marketing
The point of marketing is to boost sales.

Advertising can increase sales—sometimes. Making cold calls can result in sales—sometimes. Using Google AdWords can lead to sales—sometimes.

But unless you track your marketing activities, you’ll never know which ads or calls are producing results. And if you don’t know which marketing activities work best, how will you know where to spend your money to generate the most sales?

Find ways to track the results on all of your marketing activities. If you need help, get guidance from the small-business consultants at ProTalk.

As an AFS Member you have unlimited access to the ProTalk® consultants—and it’s included in the cost of your membership! The consultants are only a phone call or keystroke away. They can help you analyze your marketing strategy, develop tracking systems and more.

Mistake #4
Not testing new marketing ideas
Every day business owners find new, effective ways to market their small companies. As new activities become the accepted norm, old activities begin to become ineffective.

As social media has expanded and gained a marketing foothold, many small businesses have seen the effectiveness of their Yellow Pages ads decline.

As online advertising has exploded, some businesses have found their print advertising no longer pulls in sales.

Try new ideas. Use what works and watch your sales increase.


(Posted June 2011)

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