The idea of geometric business growth may seem overwhelming to you. There must be an endless list of ways to stimulate growth in your business, with no quick way to know which strategy will work best. However, that’s not necessarily the case. There are three fundamental steps you can take to promote the growth of your business, and it’s all a matter of simple mathematics.
Increase the Number of Buyers or Clients
Don’t skip over this one just because it seems to be the most obvious. There are many ways to acquire new clients. How many are you currently using? Make a list of every possible channel for your business to gain new clients (e.g. Social Media, SEO, Video Marketing, PPC, Yelp, etc.). Then look at your competition, the ones you know are doing well and you respect, and see what they are doing. If you have friends in your industry, ask them what’s working for them. Finally, prioritize your list and work on each tactic for a month or two, and then develop systems to keep the marketing tactic going. In one year, you should have at least six new channels driving new clients into your business!
Increase Transaction Value
An increase in transaction value means clients are purchasing larger quantities from your business. This is where utilizing your staff at full capacity comes in handy. Skilled staff that is knowledgeable in cross-selling and up-selling techniques can be instrumental in clients becoming interested in more products and services. Cross-selling provides an opportunity for happy customers to try out other options from your business, whereas up-selling gives them a choice between services that range in value and quality. Most clients will opt for the middle-ground option, a comfortable place between the cheapest and most expensive choices.
Increase the Frequency of Repurchasing from Established Clients
Returning clients are an invaluable component to a successful business. Not only would you like to retain your client base, but you want to see an increase in the frequency of purchases from them. Again, taking the time to optimize the skill level of your sales staff is imperative. Be personable and maintain the relationships with your clients where possible. Clients that feel appreciated are going to return the appreciation to your business, hopefully with increased purchases.
The Bottom Line
Here’s the math: If you have 1,000 clients that each make $100 purchases from you twice a year, then that results in a turnover of $200,000. An individual increase in clients or purchases may result in some business growth, but at a slower rate. On the other hand, if you aim to increase all three variables by 15%, which is a 52% overall increase, you would now have 1,520 clients purchasing $100 twice a year, resulting in an impressive turnaround of $304,000. Not too shabby for a mere 15% increase in geometric growth.
Simply by being more aware of the details related to each client in terms of the frequency and profit generated from each client purchase, you are on the path to increasing the growth of your business. The awareness of what is currently going on will allow you to zero in on the areas that are harboring growth potential. Not only is a 15% increase in turnover manageable, the vehicle to reach that number is right in front of you in the everyday details of your business activity.
We are Here for You
If you need help making this happen, contact us at Black Fin. We love to work with clients and see their businesses rise to the top of their competition. Let us know if we can help by filling out our contact form or calling our CEO, Gerrid Smith, today at 530-215-1159.