There are just seven ways to grow your business. The first five grow your sales and the last two reduce your costs. The seven ways are:
1. Increase customer retention
Delight your customers and clients. Do a great job and keep them happy – loyalty pays dividends (literally). It’s easier to retain existing clients than attract new ones.
2. Generate more leads
Gain more enquiries from people who are not yet customers with improved marketing strategies.
3. Increase your sales conversion rate
Get more of your prospects to buy from you by following up effectively and building rapport.
4. Increase transaction frequency
Engage your customers to buy from you more often.
5. Increase transaction value
Help your customers buy additional products or services or bigger volumes.
6. Reduce your variable costs
Increase your margin by improving efficiency to reduce the costs that go into your product.
7. Reduce overheads
Eliminate or better manage your fixed business costs.
Which of these do you need to focus on as a business owner?
You can always make improvements in each area, however, you’ll be most effective if you focus on one or two at a time.
For example, a manufacturer will likely want to focus on reducing variable costs first. It might become apparent that wastage of raw materials or inefficient use of time is impacting the profit margin of each sale.
Or, maybe a marketing agency would focus on encouraging existing clients to purchase more products and services, so spends more time training their team to identify wider customer needs and speak to them about selling those solutions.
Which of the above ways is the easiest and cheapest to implement?
Increasing customer retention. That’s why its top of the list. Simply looking after your clients and customers better is a fast track to growth.
“Good service leads to multiple sales. If you take good care of your customers, they will open doors you could never open by yourself.” – Jim Rohn