Setting Sales Goals for an Online Business
One thing I’ve realized lately is how important it is to not sit back and “wait” for sales to happen on a new eCommerce website. No, you don’t have to be a jerk like the picture below explains 🙂 but you do have to go out there and make things happen.
I run one website that sells clogging shoes and dance bags. One of the initial ways I made sales was to start contacting people I already knew that may be interested in what I was selling. Yes, I had to take a few big steps out of my comfort zone at first; however, as I talked to friends and family, they were willing to give me good feedback and even criticism which helped my site make progress.
Some of that feedback was positive. I used this feedback as the start of a “testimonials” section. Am I positive that it had a direct effect on sales? No. I do know that many large companies use feedback and reviews to give their products and services more credibility.
I’ve been thinking a lot lately about goals and how this ties in to sales online. I heard that Monday, January 21st is known as “Blue Monday” because people realize they probably aren’t going to keep their infamous “New Years Resolutions”. Three weeks have come and gone, they realize they’ve fallen in to the same patterns as always – they decide to give up and quit.
Why does this happen? Were they not serious when they set these goals in the first place? Were they not committed? Did they not want to succeed or overcome a bad habit? Of course they were serious; of course they were committed (at least at first); obviously they wanted to succeed or cut the bad habits. But, in my opinion, their goals were probably based on “outcomes” and not individual “performance”.
I would say that my greatest “discovery” to date as an entrepreneur has been a better understanding of how to set and accomplish goals. When it comes to sales, some things are obviously out of our control. I really wish I could just turn on a magic button and all of a sudden the money would flow in to my merchant account on a consistent basis. However, this doesn’t happen as often as I’d like. Why, Why, Why? I’ve actually heard a few clients ask this very question: “Why the hell am I not making sales?” My simple response, “What have you done TODAY to make a sale?”
So my advice is this: as you think about your goals, what you want to accomplish with your online business, or with anything, ask yourself the question – “How much control do I have of that outcome?” If you can honestly say you have COMPLETE control, this is the type of goal you go after. Here’s a ficticious example:
Goal: Make $60,000 this year with my online business.
Let’s break it down:
- To make $60,000 this year, assuming we are starting today, Tuesday, February 19th, means we have 10 and 1/2 months.
- $60K / 10.5 = $5715 per month.
- $5715 / 4 weeks = $1430 per week.
- $1430 / 7 days = $205/day.
By doing this break down I can actually see what it’s going to take on a day to day basis if I want to achieve this financial goal of $60,000 by Dec. 31, 2008.Now I have to ask myself that important question: How much control do I have of that outcome – to make $205 per day?” Some might say this is debateable but think about it, can I actually MAKE a visitor to my website buy the products I am offering on a specific day? From my experience, the answer to that is NO. However, there are things I can do every day that will improve the likelihood of this happening. What are they? Phone calls, emails, weekly or daily promotions, testing different wording strategies, client feedback and referral systems, offline marketing, joint ventures – the list can go on and on. But look at this list – “How much control do I have of [these] outcomes?” All the control!
I can set a goal to make X amount of phone calls today, send Y amount of emails to my database. Then, after doing these things, I can monitor my progress. Maybe today I called 20 people and 5 of them purchased for an average of $50. That means 25% of my contacts purchased something and I made about $250 today. If I contact 50 people tomorrow I have a chance to sell to 12.5 people for about $625 in sales. The numbers won’t always be perfect every day, but keep track of your progress (what was working, what didn’t seem to work), and then duplicate your successes more and more and more!
I’ve rambled long enough today. These strategies will pay off with your businesses. As the cliche states: “Practice makes perfect!” Now start practicing!