BIG Sales Problem Number One is
‘Too few WOMBATs’
WOMBATs are new customers that have been replicated by your existing customers.
WOMBAT = Word Of Mouth Buy And Tell.
When one of your satisfied customers replicates another satisfied customer, that’s a WOMBAT. WOMBATs replicate other WOMBATs. These are, of course, the most profitable and prized customers of all.
WOMBATs are least costly to acquire. They are the least price-sensitive. They buy more and more often. They are more interested in new products and offers. They are most likely to do repeat business. And, they are the most likely to replicate themselves creating other WOMBATs.
If you are not getting new WOMBATs every day then that’s a real business hazard.
BIG Sales Problem Number Two is
‘Too Few REFERRALS’.
The second most profitable business comes from referrals. Because they are more likely to buy they are less costly to acquire. They are more likely to become WOMBATs.
Referrals have a high lifetime value to your business. They are higher quality customers. Referrals are more likely to want to do repeat business.
Not having a daily flow of healthy referrals is a business survival hazard.
BIG Sales Problem Number Three is
‘Too Few REPEATS’
Unhappy customers defect and do not give repeat business. They have short and less profitable relationships with your business. If salespeople are not servicing existing clients well they do not do repeat business. Losing a client doubles the acquisition cost and minimises profits and shareholder return.
Too few repeats also reduces the liklihood of referrals and WOMBATs.
BIG Sales Problem Number Four is
’Too low NPS Score’
The Net Promoter Score (NPS) is the current customer-relationship metric used by GE and other F500 and ASX100 companies.
The score is calculated by subtracting the percentage of detractors from the percentage of promoters.
On a 1-10 scale the NPS question is asked: How likely is it that you would recommend [brand] to a friend or colleague?
GE demonstrated their NPS commitment by mandating up to 20% of annual bonuses of senior executives would have an NPS connection.
How does your current NPS compare with your competitors? If the answer’s “not well” then that’s a BIG sales problem.