In today’s business environment where customer numbers in many industry’s are stagnant or declining, a company needs to focus on implementing strategies throughout their whole business that enables them to gain more revenue from their existing clientele….

My background in the fashion industry at both wholesale and retail taught me very quickly the power of selling that one extra size, colour, style or label into a boutique or the matching top to go with the bottom to the consumer.

In fact, the art of “suggestive selling” was not a new concept to me when I started in the rag trade. Through the latter years of high school and during my early university life, I had the enjoyable experience of working at McDonald’s. This was the era where asking every customer “would you like fries with that” was just as important in the success of the company as the secret sauce on the Big Mac.

After finding life behind the grill and in front of a stinking hot french fry oil pit not so much to my liking in the early days of my Macca’s journey, I sweet talked a Manager into letting me serve customers on the front counter, and escape the heat of the kitchen, so to speak. After copping a razzing from every male burger flipper in the joint, it was here that I was not only taught to ensure if everyone would like fries, an apple pie or a packet of cookies with their order, but I was tested on it as well, through an aggressive secret shopper process McDonald’s had in place at the time.

By the time I had entered the rag trade, asking a customer subtly about their needs for those extra items was second nature. In fact, as I then went on to train many sales people at both wholesale and retail, this PLUS ONE sales philosophy became a part of my mantra.

The importance of the extra sales to a bottom line is unquestioned and based on a recent experience at McDonalds I am going to use this to highlight my case:-

Still being loyal to the McDonalds Corporation for the wonderful training and life skills they provided me, the need arose due to a late meeting, for me to pick up dinner on the way home. I went through the drive through and just ordered a Big Mac – no fries, no drink!!!

Now I know what you think I am about to say – They asked “would you like fries with that” or “would you like to put that into a meal” – But No, the young lady said to me, “Is  that all for today”. To make matters worse, when I went to the next window to pay for the meal, I heard her say exactly the same to the next customer.

So I quickly rushed home, as my analytical business mind needed to know what this was costing the company, having this staff member end the ordering process like she did – Sure I didn’t know the exact facts, but by assuming a few things, I knew I could get close enough and come up with an accurate number.

Given that this particular outlet was a 24 hour store, lets say that 1000 people went through the drive-thru each day (that is less than 42 people per hour). Lets also assume they each spent an average of $8.95 and that their role was to try and upsell a $2 item to as many people as possible.

These 1000 customers would bring revenue of $8950 for a day.

If the girl converted 70% of these customers (700) into the extra $2, that would not only add $1400 to the days takings but an extra $511,000 for the 365 day year, if they were able to maintain the very achievable rate of 70% all year.

If the girl converted only 50% of these customers (500) it would still add $1000 to the days takings and $365000 to the years figures.

If she converts 30% of the customers (300) it would add $600 to the takings and $219000 to the end years results.

However if she continued to kill the order with her own interpretation of the company standard, then it is also easy to calculate the damage she is causing, and directly costing the company, in both turnover and profit. I am sure you will agree, a horrifying amount of money.

I think that this particular example is a fantastic reminder to all managers that you can have the best processes in place, however, if they are not being used at the coal face in the desired manner, then even with your best intentions, your end goals will end up being lost dreams.

There are also a list of other major benefits to any company that has an effective PLUS ONE strategy in their business framework. You will generate a faster stock turn, your business numbers will be much greater (and more impressive to future investors) because you will be dividing the same expense base into a much higher revenue figure, and if you view it the way I see it, you will be able to offer your employees a generous bonus system based on the results, for in real terms you are paying them from money you never really had. This may sound confusing, however I have always used sales increases through monitored PLUS ONE strategies as my stimulus for the payment of any bonuses within my businesses. I found that it not only gave a greater focus to the initiative but the bonus amount was always drawn from the extra sales made, sales that were a direct result of their ability to implement the new concepts.

Every company, no matter what product or service they market, should have a structured “Plus One” strategy within their business that is not just dependent on their sales people. Any person within the organisation that has contact of any form with the client, can offer a “Plus One” option. It just comes down to the correct strategy, effective training, sincere execution and regular assessment to ensure that the process is being carried out in the form intended. Trust me the numbers never lie!!!

At Blurb Consulting we help companies generate, implement and measure PLUS ONE strategies within their business with outstanding results…For further information contact Ian Perkins on 0418194123 or ian@blurbconsulting.com.au