The 3 fundamentals of business growth and what you need to consider.
Coming to you from the cosey red chair in my office with another industry hot topic, business growth.
You may have heard there are a million ways to grow your business BUT it's all LIES! There are only 3 ways you can grow your business as here they are: 1. Attract more clients 2. Increase average client transaction value 3. Increase the frequency a client purchases That’s it - Simple. I’m not one for all the fluffy talk. I like to keep it straightforward and to the point.
Now I'm not going to leave you high and dry, let's dive a little deeper into what that actually looks like for your business and the considerations you can make today.
Attract More Clients
This one is pretty obvious isn’t it - If you want to grow your business you need to find more people to buy your product/service. So it's time to look at your marketing plan!
What platforms are performing well right now - how can you capitalise on this?
Can you create some paid Ads or increase organic engagement?
Can you run a competition or a challenge to increase awareness?
Can you get current clients to share your product/service and tag you?
Can you double down on content on your top-performing platform?
What platforms are underperforming right now - how can you adapt and evolve
Are your ideal clients on these platforms or are you wasting valuable marketing efforts?
Can you get creative and shake things up (short-form video is the future)
Is it time to let the platform go and try something new
Can you increase your marketing efforts and/or spends
How can you diversify to reach a new audience?
Mastered Social Media - why not consider more traditional methods of marketing?
Have you thought outside the box - or literally in the box (postcards inside subscription boxes)?
Final thoughts - when it comes to attracting new clients you need to get creative, there is a lot of noise in the industry and you need to cut through it to be heard. If you have a team it's time to brainstorm, It helps if you have completed your buyer personas so you know your ideal client inside out!
Increase average Client transaction
I would argue this is the easiest one of all. They're already about to purchase from you, you've done the hard work - all we're looking to do is increase that transaction value. Here's a few things you could do:
Buy X or more and get X% off
Buy X and get the cheapest free
Buy X and save X
Promo additional products with a quick buy option
Create time-sensitive limited offers at the checkout stage
On product pages tag complimentary product/services
Offer a selection of 'things you might like' at the bottom of the page
Have pop-ups at the ready to offer low-ticket items or discounts
Offer payment plans
Create a free trial period
Abandoned Cart emails (with discount to encourage)
The Shipping Secret
A well-known industry secret for the product-based industry. Look at your current average customer spend - let's say it's £45 so, you offer free shipping for all orders over £50. This encourages the customer to spend more - 9/10 they will spend more than £5! For good business, you either swallow the shipping costs or adjust the product cost to factor in shipping.
Final thoughts - when it comes to increasing the average transaction value don't overthink it. Keep it simple and it will happen naturally, think just how many times you've purchased more because of one of the reasons I've mentioned above! (I'm guilty of the shipping one all the time).
Increase the frequency a client purchases
This one isn't as easy as the rest, especially if your product or service is a one-time purchase. But that doesn't mean it's impossible, we just have to get a little creative!
Can you turn your product/service into a subscription box or membership
Can you create special offers for repeat purchasing
Do you have a loyalty program
Can you create a complimentary product/service
Can you offer ongoing maintenance if your service-based
Offer an above and beyond experience
Offer a referral program by which they receive 'credits' to spend with you (you get new and repeat custom)
Final thoughts - when looking to increase the frequency of a client's transactions you need to think carefully about your business model, spend some time gaining some client feedback, let them tell you what they need so you can look for opportunities and gaps within your product suite. I would always start with your client experience because if you nail that you're on to a winner!
There you have it. The 3 ways to grow your business and the things you can do today to make a difference.
If you liked this post don't forget to share it on your socials or send it to a business friend and help them grow too.
If you'd like to learn more about how I can support you through these changes head over to my Services Page