Are you looking to grow your business? Pathfinder Solutions suggests focusing on seven smart strategies. The first five increase your sales; the final two reduce costs and improve your margin and profitability. Which of the seven will you target first? Talk to us – and we’ll help you get on track.
Even though Googling “how to grow my business” might give you hundreds of thousands of results, there are just seven proven strategies. The first five grow your sales, and the last two reduce costs. And here they are:
1. Increase customer retention.
Deter your customers from defecting to the competition by keeping them happy and making them feel valued. It’s easier – and offers far greater ROI – to retain existing clients than attract new ones.
2. Increase leads generated.
Gain more enquiries from people who are not yet customers with improved marketing strategies.
3. Increase your sales conversion rate.
Boost the number of prospects who buy from you by following up effectively and building rapport.
4. Increase transaction frequency.
Engage with your customers in a meaningful way, so they buy from you more often.
5. Increase transaction value.
Help your customers buy additional products or services, or in larger volumes.
6. Reduce cost of sales.
Increase your margin by improving efficiency to reduce the costs that go into your product or service.
7. Reduce overheads.
Eliminate or better manage your fixed business costs.
If they were to look at that list, almost every single organisation would identify areas in which they could improve. But, before you leap in or, worse, feel overwhelmed by where on earth to start, take a breath and remember that it’s most effective to focus on just one or two at a time.
Which one/s could depend on the type of business you run. For example, a manufacturer will likely want to focus on reducing variable costs first. It might become apparent that wastage of raw materials or inefficient use of time is impacting the profit margin of each sale.
Or, maybe a retailer would begin by encouraging existing customers to come in more often, and devote more time training the sales team to cross-sell and upsell.
Take another look at those seven. Which of them would be the easiest and cheapest to implement?
Increasing customer retention! That’s why it’s top of the list! Taking better care of your existing customers is a fast track to growth.
As renowned American entrepreneur, author and motivational speaker, Jim Rohn said: “Good service leads to multiple sales. If you take good care of your customers, they will open doors you could never open by yourself.”
About Pathfinder Solutions
Pathfinder Solutions advisory team members have either owned or managed businesses, or are investors themselves, so we know first-hand the challenges you face in your world.
Sure we’re Accountants, but the best solutions in business come from focusing on more than just the numbers. Our real-world business experience delivers just that.