The Drivers of Business...What creates turnover? Sales? Customers?
Well if you breakdown how turnover is calculated you will find:
Turnover = # of customers x # of transactions per customer x $ spent per transaction.
So if you have 2000 customers each purcasing from you twice per year and spending $100 per sale you would have a turnover of $400,000 - not a bad business.
So what would happen if you were able to increase each area by 5% - just 5%.
Thats 2100 customers each purchasing 2.1 times and spending $105. Thats a $463,050 - an increase of 63,050 or 15.76%. So by increasing the business drivers by only 5% your turnover will grow by over 15%.
Ok so how do you actually grow those drivers..
Well most people focus on growing the # of customers by simply advertising... By often forget about the other drivers...
You can increase the number of transactions by putting in place a frequent buyers system like subway's stamp club..
You can increase the # of items purchsed by following McDonalds and simply asking 'would you like fries with that?'
You can increase the $ spent by again following McDonalds asking 'would you like to supersize that order?'