Ask any business owner, executive, or entrepreneur how many ways there are to grow a business and most of them will tell you that they are dozen, hundreds, or even thousands of ways.
You may be relieved to know that there is only three way to grow any business in any industry with any product or service.
Those three ways are to increase the number of new clients, to get them to buy more and to get them to buy more often.
INCREASING THE NUMBER OF NEW CLIENTS
The one area that every business spends time on is increasing the number of new clients that can use their product or service.
The downside of this method is that of the three ways to grow business, this is the most expensive, the least profitable and the most time-consuming.
The more ways you can make available for a prospective and current client to do business with you, the more likely people will buy your product or services.
You can use a website to capture prospective client information, build email distribution lists and encourage people to make contact with your company to learn more about your product or service. All of these will allow you to build up your client base.
Well I got a few things that you can do to your business to get more clients:
1. Create a systematized referral programs.
2. Build a network of strategic alliance and joint ventures to create joint marketing efforts and share the client acquisition cost.
3. Implement a search engine optimization (SEO) and a search engine marketing (SEM) strategy to leverage the power of the internet.
4. Offer special first-time buyer discount and incentives, and offer people additional bonuses when they make their first purchase.
5. Offer free samples, trial memberships, and money back guarantees.
6. Identify what types of companies exist that are already marketing to your ideal prospect and offer to do a revenue share with those companies for any of their clients that purchase from you.
7. Offer free informational reports on what to look for when buying your product or service.
INCREASING THE SIZE OF EACH CLIENT TRANSACTION
Just step inside any fast food restaurant and chance are that you will hear the clerk behind the counter ask you if you would like to super-size, up-size, or jumbo-size your order at the time of purchase. The same thing applies to the internet.
Up-Selling, Cross-Selling, and Re-Selling
The amazing thing about the process of up-selling, cross-selling or re-selling is that it is not hard to do; all you need to do is to ask. Try it today in your own business. Every time one of your clients makes a purchase, ask them to buy a larger quantity and on an additional product or service, or pre-buy in advance more of the item they just bought.
Okay so besides asking, what else can you do to get your client to buy more?
Bribe them! Offer them an incentive that rewards them for making a large purchase, adding on additional products or services, or signing up for future purchases in advance.
The best time to ask someone to buy something is immediately after they make a commitment to purchase.
Here are a few things that you can do to your business to get your clients to buy more.
1. Make a list of products and services that people buy before, during, or after purchasing your product or services and contact them about offering their products and services to your client base.
2. Create a list of every product and service that your business offers and then make a matrix of all of the possible cross-selling opportunities that can be offered with every purchase.
3. Bundle products and services into packages.
4. Offer bonuses when customers purchase larger quantities.
5. Create pre-paid packages.
6. Offer tiered-level services or warranty packages (e.g. gold, silver, bronze. Etc)
INCREASING THE FREQUENCY OF EACH CLIENT TRANSACTION
The third way to grow your business is to increase the frequency of purchase transactions by getting your clients to buy more often. For example, if your clients typically buy from you once every six months, how can you get them to buy four times a year, or once a month?
The answers simply give them more reasons as to why they should.
Offer incentives that encourage your clients to come back to your store or contact your business on a more frequent basis. Look at the success of frequent buyer programs that reward people for making an additional purchase.
Here are a few things that you can do to get your clients to buy more often:
1. Step up frequent buyer or reward programs for your clients.
2. Offer bonuses when they purchase on a regular basis.
3 .Create monthly membership program
4. Make sure that you make offer to your clients on a consistent and regular basis.
THE POWER OF EXPONENTIAL GROWTH
If you are using one of the three methods to grow your business can increase the profits of your business, imagine what kind of explosive growth you could achieve if you worked on improving all three areas simultaneously!
Imagine that you have 1000 clients spending on average of $50 two times a year. That’s $100,000 in revenue. If you increased just 10 percent in all three areas that would turn into 1,100 clients spending on average of $55,22 times a year which makes $133,100 in revenue.
Do you see the power of exponential growth? Instead of a 10% increase in revenue, you end up with over a 33% increase in revenue!
Once you start to spend time proactively focusing on and implementing strategies that increase the number of new clients that use your product or services gets them to buy more and get to buy more often you will be amazed at the number of profits that your business can make and how quickly your business will grow.
Take these action items and use them.
1. BE PROACTIVE
spend a few days making a list of all of the possible ways that you might be able to use to increase your number of new clients, increase the size of each client transaction, and how you could increase the frequency of transactions.
2. ADD MORE VALUE
Focus on how you add more value to each of your product or service offering to your clients and prospects.
3. UP-SELL AND CROSS-SELL OPPORTUNITIES
Identify other products and services that you can bundle with add or offer to every single person that does business with you. Always ask everyone to buy more often and let the law of number work in favor, If only three of every ten people said yes to an up-sell or cross-sell opportunity, how much revenue and profits could your business gain?
4. CREATE A SYSTEMATIZED REFERRAL PROGRAM
If you don’t already have a systematized referral program in place in your business, invest the time to create an online a process that you can use to consistently request referrals from your clients perspective, vendors, business associate, joint ventures or anyone else that might be able to refer people to your company.
5. CALCULATE THE LIFE TIME VALUE OF YOUR CLIENTS
Invest some time to calculate what the lifetime value of your clients is so you know exactly how much money you can afford to invest in acquiring new clients.
6. TEST AND MEASURE:
Always test and measure every aspect of your marketing and business growth efforts. Only through testing and measuring will you truly be able to know what is working well and thus should do more of and what is not working you should do less of.
7. THINK GEOMETRICALLY
Don’t let a day, week, month, or year go by without proactively focusing on increasing each of the three areas of growing your business method more strategies, tactics, and methods that you can consistently add to your marketing and business growth efforts.
The most important thing to remember about these methods is that they will never do you or your business any good at all if you never take any action to proactively implement as many items as you can in each area of business growth.
Leave a comment below please so let me know how I can help you more because your growth is important to me.