Ask any business owner, executive, or entrepreneur how many ways there are to grow any business, and most of them will tell you that there are dozens, hundreds, or even thousands of ways.
You may be relieved to know that there are only three ways to grow any business, in any industry, with any product or service. Those three ways are to increase the number of new clients, get them to buy more, and buy more often.
I first learned this concept from master marketer, Jay Abraham, which Jay refers to as the “Three ways to grow a business model.” The beauty of this concept is that it can be applied to any business, in any industry, offering any type of product or service.
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 products of services. The downside of this method is that of the three ways to grow a business, this is the most expensive, the least profitable, and the most time consuming.
The more ways you make available for prospective and current clients to do business with you, the more likely people will buy your products or services.
You can use websites 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 which will allow you to build up your client base.
Here are a few things that you can do to your business to get more clients:
- Create systematized referral programs
- Build a network of strategic alliances and joint ventures to create joint marketing efforts and share the client acquisition cost
- Implement a search engine optimization (SEO) and a search engine marketing (SEM) strategy to leverage the power of the internet
- Offer special first time buyer discounts and incentives
- 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
- Offer free samples, trial memberships, and money back guarantees
- Give people additional bonuses when they make their first purchase
- 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 chances 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. Same thing applies to the internet.
Up-Selling, Cross-Selling, and Re-Selling
Whether you are buying a hamburger from McDonald’s, ordering a latte from Starbuck’s, or getting a book online from Amazon.com, you will be presented with a chance to add more to your order.
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 ask. Try it today in your own business. Every time one of your clients makes a purchase, ask them to buy a larger quantity, add-on an additional product or service, or to pre-buy in advance more of the items they just bought.
Ok…so besides asking, what else can you do to get your clients to buy more?
BRIBE THEM! Offer them incentives that reward them for making a larger 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 a purchase.
Here are a few things that you can do to your business to get your clients to buy more:
- Make a list of products and services that people buy before, during, or after purchasing your product or service and contact them about offering their products and services to your client base
- 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
- Bundle products and services into packages
- Offer bonuses when they purchase larger quantities
- Create pre-paid packages
- Offer tiered level service 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 answer…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 additional purchases.
Here are a few things that you can do to your business to get your clients to buy more often:
- Set up frequent buyer or reward programs for your clients
- Offer bonuses when they making purchases on a regular basis
- Create monthly membership program
- Make sure that you make offers to your clients on a consistent and regular basis
The Power of Exponential Growth
If using one of the three methods to grow your business can increase the profits of your business, what would happen if you worked on improving all three areas simultaneously, imagine what kind of explosive growth you can achieve.
Imagine that you have 1000 clients, spending on average of $50, two times a year. That’s $100,000 in revenue. If you got just a 10% increase in all three areas, that would turn into 1100 clients, spending on average of $55, 2.2 times a year into $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 products or services, get them to buy more, and get them to buy more often, you will be amazed at the amount of profits that your business can make and how quickly your business will grow.
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 on proactively implementing as many ways as you can in each area of business growth.
Copyright © 2006, Damian Petrini