If you want to grow your business, there are 5 ways to do it. They are:
- Increase the transaction value of your existing clients. In other words, sell them more products or services each time they buy from you.
- Increase the frequency of your clients purchasing. Instead of them buying from you 4 times a year, allow them to buy from you once a month.
- Attract more clients.
- Increase your prices or fees.
- Retain more clients (also known as attrition management.)
Marketing is more than just attracting new clients
Most small business owners focus on number 3 and number 4. They are always looking for new clients and ways to increase their fees, unaware that they can massively increase their revenues and profits, from their existing client base.
In working with my clients, I have helped some develop their existing client base to the point where they have increased profits by over 700%, without them having to win a single new client.
For example, you can develop additional products and services, which compliment what you already offer. This allows you to bring greater utility to your clients and as a result, additional revenue streams to your business too. It’s quicker and easier to sell additional products or services to existing clients, than to people who don’t know you. It’s usually more profitable too, as the lead-in time is shorter and the potential for non-payment almost nil, as you already know their payment history.
Increasing the purchase cycle
Business owners often limit their revenues and profits, by sticking to needless purchasing cycles.
For example, I recall a DIY company that made the massive majority of it’s sales from a bi-annual catalogue. They had always done things that way and were used to having 2 busy months each year, which sustained the business. By simply turning that catalogue into a quarterly publication, they were able to almost double their sales.
Client retention and acquisition
Another benefit of building your service, so that it’s of greater value and of greater utility, is that you will encourage clients to stay with you for longer. This helps take care of point 5 on the above list; client retention. When clients are getting a better, more inclusive service from you, it makes it harder for a competitor to win their custom. Similarly, the increased value and utility of your service, will make it more attractive when you market it, which will help you attract more new clients too.
Yes, it makes perfect sense to attract new clients and look for ways to offer a better service, so you can charge stronger prices or fees. But never underestimate the potential for huge windfall revenues, when you focus on delivering excellence and increased utility to your existing client base.
IMPORTANT: If you want to make more sales, boost your profits and grow an amazing business, this will help you!