I’ll keep this simple, there are three ways to grow a business, no more, no less. Growing a business might sound complicated but really, thee are only three ways to grow a business. I learned about business growth when I took the ‘Customer Value Optimisation’ certification from Digital Marketer.
Way 1: Increase the value of the average order per customer
If you adopted this as your strategy to grow your business you will need to identify ways to add more value to what you sell so you can increase your prices.
You need to really think about your use of up-sells and cross-sells to increase the average order value from your customer.
This is the most cost effective way of growing your business. You already have your customer, they are about to buy, you just need to make sure you are maximising your opportunity to sell.
When I create a Growth Opportunity Report, this is the first place I look for opportunities for growth.
Way 2: Increase the number of transactions per customer
If you adopt this as your growth strategy you need to think about how you get your offers in front of your ideal customer on a regular basis. This is where email marketing and a retargeting ad strategy are highly valuable.
This is the next cost effective way of growing your business. It is not as cost effective as the previous way because you need to put time and effort into getting your offers in front of your customers again. But because they are already customers, (and classed as a warm audience) they are easy to convert into buyers again so they don’t need as much ‘selling’ to.
When I create a Growth Opportunity Report, this is the second place I look for opportunities for growth.
Way 3: Increase the number of customers you have
Finding new customers to sell to is the most expensive way to grow your business. There is always a cost associated with driving new traffic to your website so if you are not doing everything you can to turn that traffic into leads and then sales, then your customer acquisition costs are going to be high.
The more new traffic you can convert into leads and sales means your customer acquisition costs will be much lower. Lower acquisition costs means more profits. Profits you can use for your salary or to reinvest back in to your business. Perhaps on more traffic.
When I create a Growth Opportunity Report, this is the third place I look for opportunities for growth. I assess the lead generation capabilities of a website or e-commerce site. Since lead generation can be expensive business, it’s an important part of a business to optimise.
So, over to you. What is going to be your strategy for growth?
If you want a plan to optimise your website, funnel or e-commerce store for growth then click here to read more about The Growth Opportunity Report.