Business growth can be achieved in just seven ways. Making changes isn’t easy, but if you plan, take action, and hold yourself accountable, it’ll pay off. By focusing on these 7 ways; where the first five increase sales and the last two reduce expenses you will see your business grow.
The seven ways are:
1. Increase customer loyalty
Keeping your customers happy will prevent them from defecting to your competitors. Maintaining customer loyalty is easier than attracting new customers.
2. Generate more leads
Using improved marketing strategies, you can increase inquiries from people who are not yet customers.
3. Increase your sales conversion rate
Potential customers will be more likely to buy from you if you follow up effectively and build rapport with them.
4. Increase transaction frequency
Promote your products and services to your existing customers so they will buy from you more often.
5. Increase transaction value
Implement strategies to get your customers to buy additional products, services or bigger volumes.
6. Reduce cost of sales
Look to reduce your variable cost of sales and improve efficiency to increase your margins.
7. Reduce overheads
Make your business more cost-effective by eliminating or managing fixed costs.
Is there one of these you should focus on as a business owner? All businesses can find improvements in each of these areas but it is best to focus on one or two at a time.
An example would be to look to reduce variable costs. Depending on your business, this might mean eliminating wastage of raw materials or inefficient use of time which impacts on the profit margin of each sale.
Or, maybe a retailer would focus on encouraging existing customers to come in more often and spend more time training the sales team to cross sell and upsell so that the transaction frequency and value increase.
Which of the above ways is the easiest and cheapest to implement?
Increasing customer loyalty. That's why it’s top of the list. Simply looking after your existing customers better is a fast track to growth.
Each of the 7 ways to grow your business contains a number of strategies that you can implement in your business. If you want to find out which strategies are best for your business, book a complimentary call with the team at Thrive CA to discuss how we can help you.
“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