There are a few general ways you can increase your sales. You can increase your number of customers, your average sale size, or your frequency of purchase rates for existing customers. One of the biggest mistakes salespeople make is attempting to double their sales by trying to double any one of those three markers. This is extremely difficult to do, and it’s an unrealistic goal.
My 2X Formula grows each of these markers by just 26%. Let me show you what I mean. Here are the three components of the 2X Formula:
1.26(average sale size)
1.26(frequency of purchase)
By increasing your number of customers, average sale size, and frequency of purchase by 26% each, you’ll double your overall sales. This is a much more attainable goal than doubling any one measure. Here’s the formula:
1.26(customers) x 1.26(average sale size) x 1.26(frequency of purchase) = 2X total increase in sales
There you have it: The exact formula to double your sales while working less than you do now. Check out the video below to learn more about this game-changing formula.
The 2X Formula at Work
As an example, let’s look at my client Denise. Denise runs a marketing business with around 1,000 customers. Her average sale is $1,000, and her average customer makes one purchase from her a year. We can multiply those three measures together to determine her annual revenue:
1,000 x $1,000 x 1 = $1 million dollars
Denise does $1 million dollars in revenue each year. Remember, these aren’t her profits. She’s getting by, but she could certainly be doing better. Now, Denise could try doubling her sales by doubling her customers to 2,000, doubling her average sale to $2,000, or doubling her frequency of purchase to twice per year -- but that would be a lot of work. Instead, let’s see what happens when she uses the 2X formula:
1.26(1,000) x 1.26(1,000) x 1.26(1)
When she increases each of these measures by 26%, we find that she needs to grow to 1,260 customers, $1,260 in average sales size, and a frequency of purchase of 1.26. This last number translates to one purchase every 9.5 months. Together, Denise and I put some packages and programs in place to encourage those more frequent purchases, and we used some of my other techniques to grow her customer base and average sale size. Now, let’s do the math:
1.26(1000) x 1.26(1000) x 1.26(1)
1260 x 1260 x 1.26 = $2,000,367
Denise’s new revenues are $2,000,367 -- that’s more than double. And she did it by making a simple 26% increase to just three different numbers.
Instead of getting overwhelmed by doubling any one measure of your sales success, focus on increasing your customers, purchasing frequency, and average sale size by just 26%. This is a very attainable goal and, when you do it, you’ll double your sales without working any harder.