Here we grow
1st February 2018
“You grow or you die,” is the somewhat disturbing quote (attributed to an awful lot of people!!) but, in business, there is a truth in that. Even if you are not growing, your competitors will be – snipping off pieces of your market share until… well, we all know how that story ends!
So growth is key.
When it comes to growth most businesses consider one, two or three of the following drivers:
- To get more customers
- To convince their customers to spend more
- To encourage their customers to buy more often
These are all important, of course, but they don’t provide the whole picture for growth. In fact, there are seven key drivers for business growth.
Driver 1 – More customers
This is the most obvious way to grow though it is not always the most effective. Reaching out to new people, grabbing their attention, getting their engagement and finally securing that first purchase can sometimes cost you more than the revenue generated from the first sale. If you are seeking to get more customers, seek to do it in the most cost-effective way possible.
Driver 2 – Better conversion rates
When the focus solely on getting more customers, many businesses will know their conversion rate – in other words, of all the people who show a passing interest (leads), what percentage will actually buy something. To build more customers, therefore, means generating more leads. But (and it’s a big but), always remember to look at what happens to those leads once they make themselves known. There is an awful lot you can do to improve your conversation rate which, in the end, is going to grow your customers even more.
Driver 3 – Increased customer spend
New customers are great. But never forget the value in the customers you already have. It is by far the simplest way to increase sales. Your existing customers already know and trust you and you already know all about them – what they buy, what they need, what else you offer that might interest them…
Driver 4 – Improve buying frequency
It seems obvious but if your customer buys 10 widgets once a month, you will sell more than if they buy 10 widgets every 2 months. This driver isn’t hard but it is neglected. Are you able to see way that your customer can make use of widgets in more ways (so they need to come back more often?) or, if you offer a service, encourage them to come to you more often?
Driver 5 – Keep customers longer
Do you know why customers leave you? And, before you say “price” let me tell you that, statistically, less than a third will leave because they’ve found somewhere cheaper. A few relocate or no longer have a need for what you sell but the vast majority leave because they aren’t happy with the service they receive. Ask yourself - how happy are your customers?
Driver 6 – Charge more
Incorrect pricing is why so many businesses struggle. There is a fear around price increases because of the belief that higher prices means customers leaving in their droves. It isn’t true. Of course, some customers who are very price sensitive will shop around and leave you but, if you give good service and delight your customers, most will accept an increase – paying more for no increase in your cost.
Driver 7 – Systemise
Make business growth a habit by building systems around all of the other 6 drivers. From systematically asking for referrals to get new customers, to regularly marketing testing different price points, you can make growth automatic.
There’s a lot to do here and, while none of it is especially complicated I can probably guess what you are thinking: Where do I start? Which of these will help me most?
Honestly? It depends – but I’m currently offering free one to one meetings to help you start building your action plan. If you want to find out more about how that works, click on the link to sign up for my free online presentation to learn more.