Not sure what business development (BD) and marketing are?
Not sure how they can help?
Think they're synonymous with advertising?
Business development (BD) and marketing are not creative efforts. Rather, they are business disciplines that optimise the profit margin for each product/service mix or per market segmentation.
Measuring profit as a function of revenue and expense fails to identify the key elements that drive these business-critical measures. Plenty Systems' staff concentrate on the five key elements of profit:
The total revenue (also known as turnover or gross sales) is derived from four of these key elements—the number of leads, the conversion rate, the average sales amount and the average number of transactions per customer.
Similarly, since the number of customers is equal to the number of leads multiplied by the conversion rate, our staff never focus on “increasing customer numbers”. Rather, we concentrate on increasing the number of leads and then improving the conversion rate—i.e., the two primary elements that actually determine the customer numbers.
Traditional accounting methods fail to measure these five essential elements. We don’t!
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