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.
Stop your customers from defecting to the competition by keeping them happy. It’s easier to retain existing clients than attract new ones.
2. Increase leads generated.
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 to buy additional products or services or bigger volumes from you.
6. Reduce cost of sales.
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 the seven ways should you focus on as a business owner? There are improvements to be made on all of them. However, it can be an effective strategy to focus on just one or two at a time. Consider which of the seven ways are most relevant and will therefore have the biggest impact on your business.
For example, you may be a manufacturer and have a tonne of product orders. You may want to focus on reducing your variable costs first. You might discover that wastage of raw materials or inefficient use of time is impacting the profit margin of each sale.
Or, maybe you’re in retail. You might focus on putting systems in place that encourage existing customers to come into your store more often. In addition, you might spend more time training your in store team to cross sell and upsell better. You might even analyse the average sale value of each team member.
Here’s a good question – which of the above ways is the easiest and cheapest to implement?
Number one – increase customer retention. That’s why its top of the list. Simply looking after your 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
This information does not constitute financial or legal advice and is for general information purposes only. Please contact DLA Partners for specific advice relating to your particular circumstances.