Consider this: your firm just released a new product that is expected to be a game-changer for your industry. It's not only innovative, but it also meets an immediate need that your clients have.
But how can you tell how well your product is doing? Looking at income alone isn't sufficient — you need sales volume to get a complete picture.
Here, we'll go over the fundamentals of sales volume, why it's important, and 12 methods for increasing it.
Sales Volume: What is it?
Sales volume is the total number of items sold by your firm during a certain reporting period.
Sales volume by itself does not tell you how much money your firm generates through product sales.
However, understanding your sales volume can help you figure out what items are and aren't selling, which is useful information for company growth.
Sales quantity has the potential to make a huge difference in your company's success — and it may also have a beneficial impact on operations.
Best Way to Calculate the Sales Volume
As I previously stated, sales quantity isn't related to the company's financial value derived from sales. It's only a statistic that indicates how many units your firm was able to shift during a specific time period.
For example, if you work for a supplement firm that sells 1,000 units of multivitamins each quarter, your company's sales volume is 1,000.
You can use the same calculation to determine how much more you're making since it's based on a percentage of sales.
However, if your firm sells 1,250 units of multivitamins during Q3, reporting an increase in sales volume by 25% is appropriate.
Continuing with this scenario, if your company's total sales volume for all items in Q2 was 5,000 units, then multivitamin sales would account for 20% of the whole since multivitamins make up 1,000 out of the aggregate 5,000 purchases.
During Q3, if your firm generated 4,500 total units across product lines and sales were slightly lower, multivitamins would account for 28% of the total sales volume.
This data is significant since it demonstrates that potential customers are interested in buying your multivitamins even when other product sales fall — which might assist you to plan future actions.
You can assess sales volume in a variety of ways, including by-product components or complete cases of goods. The time period can also differ, and it is measured on a weekly, monthly, quarterly, or annual basis.
12 Ways to Increase Sales Volume
1. Understand the key features and distinctions of your products.
You can increase sales volume by increasing the number of units that you sell of your goods.
To do this, you must have a solid understanding of your product's important features and unique selling points.
Consider the following questions:
- What makes your product unique from the competition, and why should a customer choose yours rather than others that provide comparable services?
- What would you say if you only had 60 seconds to persuade someone to buy your product? What features would you emphasize?
Let the answers to those questions influence how you describe your product to potential clients.
2. Always keep your customer's best interests in mind.
The most common question I get from potential sellers is, "What's in it for me?"
When someone is considering making a purchase, the most pressing issue on their mind is what they'll get out of it.
Above, we examined why it's essential to understand the product's essential qualities and differentiators.
After that, consider methods to communicate these properties to the customer so they can see how their lives will be improved or time saved.
Customers ultimately desire products that will save them time or improve their quality of life in some manner.
You may make a more compelling argument to the client as to why they need to buy your goods if you present them from this perspective.
3. Verify that your prospects are qualified.
Are you sure you're marketing to the appropriate prospects in the first place?
If your sales volume slides or appears sluggish, it might be an indication that you need to renew parts of your sales process - and making sure you're selling to the appropriate people is a good place to start.
When qualifying prospects, you should target those who are most likely to buy your product and are best suited for it.
It's possible that attempting to push for the sale from the wrong folks might be a frustrating experience that will harm your sales efforts.
4. Identify your customers' main problem
When attempting to close a deal, the goal is always to connect your clients with goods that can help them solve an issue.
However, in order to be successful at it, you must first know what problem your client is facing.
You can compare their problems and why your product is the ideal solution after understanding those pain spots.
5. Collaborate closely with your marketing team.
You can increase sales volume by collaborating with your marketing team.
It's also critical to keep your sales pipeline aligned with your marketing team in order to ensure the appropriate leads are in it.
If you have particular sales volume goals, be sure they're shared with your marketing team.
Your marketing team can produce content and relevant content to help you achieve your objectives if they know what items you want to promote and why.
6. Concentrate on increasing sales velocity.
As the adage goes, time is money. I cringe every time I hear it. However, in sales, this saying is true.
Sales velocity is a measure of how quickly you can move prospects through your sales pipeline in order to make money.
You may reach more consumers faster if your sales velocity rises.
7. Reassign your sales regions.
If your sales force relies on territory management as part of its plan, you may wish to consider how your regions are assigned.
Reallocating your most successful sellers to markets or accounts with the greatest sales potential can help your company grow.
8. Motivate and incentivize your salespeople.
Providing monetary incentives to salespeople can motivate them to sell more products, depending on your company's compensation plan.
If you don't have the ability to change your pay package right now, consider other methods to improve sales rep morale, such as establishing a sales volume leaderboard and rewarding top performers through friendly rivalry.
9. Create rewards for your customers.
While we're on the subject of incentives, it's worth considering how to incentivize your consumers.
Your current clients may be a great source to increase sales volume, whether you provide discounts for customers who buy multiple goods at once or reward customers who refer other buyers with affiliate commission or other perks.
10. Focus on the most valuable buyers.
Prioritization is critical when it comes to generating sales. Examine how you and your reps spend their time.
Is the top account, which is more likely to buy in greater amounts or on a recurring basis, being given attention?
Keep efforts to convert and retain them at the top of your team's priority list.
11. Recognize barriers and risks.
Sales volume allows you to identify your gaps and minimize potential risks, as well as modify your approach as needed.
Assume you're trying to decide how to divide your budget and see a recurring pattern of insufficient sales in a certain region or demographic.
In that case, you may utilize the data to alter your sales strategy. You can decrease the number of risks your company is exposed to by determining what isn't working.
12. Make sure you set standards and expectations.
Tracking sales volume, especially for younger companies, and measuring it on a monthly or yearly basis can help establish a new benchmark for your sales approach.
Tracking and identifying averages on a monthly to annual basis may help your team know what metrics should be set as standards to improve and exceed.
Having those numbers at your fingertips may encourage all of your salespeople to give their best effort.
Understanding how your products are performing might give important information that can lead to additional sales.
Now that we've gone over how to increase sales volume, start monitoring these indicators to assess the health of your company right now.