Everyone could do with a little more turnover right? Especially right now as we all battle against a soft market.
The idea behind increasing turnover is pretty straightforward; you can sell more stuff, and/ or you can sell stuff for a higher price.
This sounds simple enough, but as you know, selling more stuff and selling at a higher price is much easier said than done.
In order to sell more, and sell it at a premium price, you really need to understand the foundations that support turnover. And make sure these foundations are right in your business.
When you boil it right down, turnover is based entirely on awareness and relevance. . .
Your target market need to be aware that you exist. And you need to be relevant to them.
Let’s take a look at these foundations in a bit more detail. And you can learn more about increasing awareness and relevance by downloading my step by step guide at the end of this post.
Getting your head around awareness is pretty straightforward. If people aren’t aware of you, they’re not going to dine with you. –After all, you can’t sell a secret.
Not only do they need to be aware that your business exists, they also need to be aware of what your offer is.
While they don’t necessarily need to know everything about your business, they do need to know a little about your product. In other words what you’re selling, your price and your format.
They’ll also need some sort of understanding of your brand. Who you are, what you stand for, and the service, food style and experience they can expect from your business.
Once a potential customer is aware of you, almost immediately they will make an assessment as to whether or not your product and brand is relevant to them.
For some people your offer won’t be relevant, and that’s fine, you can’t be everything to everyone.
But, you do need to make sure your offering is relevant to your target market.
I like to call this ‘product – market fit’
I’m often called on to help businesses which are suffering from poor turnover. In virtually every instance, the poor turnover is caused by a gap between the product offering and what the market actually wants.
In most cases through the gap isn’t caused a complete mismatch with the market. More often than not it’s just a case of a few elements not working, which once corrected can really turn the business around.
How Does Awareness and Relevance Drive Turnover?
With strong awareness and an offering that is relevant to your market, you have the foundations upon which to build a strong brand. And a strong brand will allow you to build loyalty, build more awareness and allow you to charge a premium.
In other words, it allows you to increase your pricing, and sell to more people.
You can read more about building your brand here.
In Summary . . .
Turnover, or a lack there of, is directly linked to awareness of your business and it’s relevance, or fit, with the target market.
Quite simply if you maximise these two things, you can maximise your turnover, and invariably your profitability too.
To better understand the foundations that support turnover, and learn about how you can increase your awareness and relevance, download my free step by step guide.