How do you go about making decisions in your business? Are your decisions driven by opinion or GUT?
I had a conversation with a prospect recently about the poor sales performance of their business over the last 18 months.
The conversation went something like this:
Marco: ‘What do you think is driving this drop in turnover’
Prospect: ‘Marketing, we need to invest in more marketing’
Marco: ‘What makes you think that?’
Prospect: ‘I just know’
I have never been a fan of ‘I just know’, so after a bit of digging and number crunching it turned out that the underlying issue driving his poor sales performance was that the conversion rate from quote to sale had dropped dramatically to less than 8%
If this prospect had decided to invest in more marketing they would have burned cash and not solved the real issue.
The decisions you make will define the success of your business. The best way to make great decisions is to evaluate and analyse the facts of each situation. This way you can save precious time and treat the cause not the symptom.
Keeping accurate and detailed records about your customers, sales process, financials, marketing performance and operational efficiency is vital to understand what is really going on.
‘Prescription without Diagnosis is Malpractice’
Do you have all the management information and appropriate levels of understanding needed to move your business forward?