Q: I’m selling lots of products, but my sales are declining. Where should I concentrate my efforts?

A: There are four ways to increase your sales:

1. Increase the number of customers
2. Increase the frequency of transactions
3. Increase the average transaction value
4. Improve operating processes for better efficiencies

Do you know how many customers you have, how frequently they buy from you on average, and what the average transaction value is of those sales? If not, you need to pull together your records.

Once you know where you stand, you can evaluate the situation to determine where you should direct your focus. You may decide that you need to redouble your efforts to increase your customer base… or you may discover that the best way to increase your sales is to look for new ways to generate more frequent or more higher value purchases from your existing customer base, perhaps by enhancing or expanding certain products and services.