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Casual Articles - The 3 1/2 Ways to Grow Any Business
As lifestyles became faster than ever, the only way for marketers to stay abreast with their clients is to catch up with their speeds -- thus, the birth of mobile ads and the vehicle wrapping industry.The trend is believed to have started with long-haul trucks in the mid-90s. Since these vehicles travel great distances, advertisers saw an opportunity to reach a wider audience by placing colorful vinyl ads on their bodies. And, because it prove
300 customers x $10/sale x 2 times/month x 6 months = $36,000**
Now I’ll keep the same formula but change one, or more, of the numbers with the amount of customers remaining constant.
1. 300 customers x $13/sale x 2 times/month x 6 months = $46,800 (23% increase)
2. 300 customers x $10/sale x 3 times/month x 6 months = $54,000 (34% increase)
3. 300 customers x $10/sale x 2 times/month x 8 months = $48,000 (25% increase)
4. 300 customers x $13/sale x 3 times/mon
Fire the PA – hire a VA!Is paperwork stopping you from growing your business? Do you wish you had a bit more time to spend on doing the things that got you excited in the first place? Building a business can turn into an exhausting treadmill if you aren't careful. The more business you do, the more administrative tasks you have; the more time you spend on administrative tasks, the less time you have to focus on generating new revenue.<
I won’t delve into these in great detail for two reasons… First of all, they are easy-to-grasp concepts, even for novices. Secondly, you’ll find these discussed ad infinitum in countless business textbooks and marketing websites. You should be ever mindful of them, however, as you develop your plan.
1. Getting New Customers: The reasons why businesses try to acquire new customers is obvious so I won’t insult you with further explanation. Still I will reiterate that the vast majority of America’s small businesses erroneously devote most of their time, money and energy here, and pay little attention to the other 2 ?!
2. Increasing the Average Transaction ($) Amount: Simply put, if your average transaction amount (one sale) is $10.00 you should be looking for ways to increase it. Do the math and add a dollar or two to every sale and see how much that adds to your bottom line in one year. For example, offer your customers complimentary supplements (add-ons) to your products…
3. Increasing the Average Number of Transactions per Customer: Let’s say your average customer purchases "something" from you twice a month… Now assume that you can provide them with services (e.g. free delivery), add-ons (expanded product line), up-sells, etc. that make them purchase more often… Again, do the math and you’ll be amazed at how quickly the numbers raise.
3.5. Decreasing Customer Churn: Okay, here’s where I differ with my colleagues… I think this one is related to number 3, but not the same. Simply put, churn refers to the number of customers who take their business elsewhere or leave for other reasons.
If your average customer remains your customer for six months, think of how your profits would rise if you kept them longer! This is where it really starts to get fun. Here’s illustration of how you can put numbers 2, 3, and 3.5 ONLY to work…
Example Assumptions:
1. I am a widget retailer
2. I have just finished a widely successful customer acquisition campaign and now have 300 new customers
3. I’ve done my research and, on average, each of my customers:
• Spends $10/sale
• Purchases twice per month
• Stays with my company 6 months
4. Given this scenario, my 300 new customers will purchase $36,000 worth of widgets during their ‘lifetime’ with my company…
300 customers x $10/sale x 2 times/month x 6 months = $36,000**
Now I’ll keep the same formula but change one, or more, of the numbers with the amount of customers remaining constant.
1. 300 customers x $13/sale x 2 times/month x 6 months = $46,800 (23% increase)
2. 300 customers x $10/sale x 3 times/month x 6 months = $54,000 (34% increase)
3. 300 customers x $10/sale x 2 times/month x 8 months = $48,000 (25% increase)
4. 300 customers x $13/sale x 3 times/mon
Sponsorship certainly conjures up an image of enormous market reach but at a mighty high price. Some of the biggest events in the world reach a market of many, many millions of people. But that's at a level where only major players are able to participate.If you are looking for effective sponsorship at a price you can afford to pay, there are numerous opportunities. For instance, take a music store selling CDs and DVDs. With so much mu
2. Increasing the Average Transaction ($) Amount: Simply put, if your average transaction amount (one sale) is $10.00 you should be looking for ways to increase it. Do the math and add a dollar or two to every sale and see how much that adds to your bottom line in one year. For example, offer your customers complimentary supplements (add-ons) to your products…
3. Increasing the Average Number of Transactions per Customer: Let’s say your average customer purchases "something" from you twice a month… Now assume that you can provide them with services (e.g. free delivery), add-ons (expanded product line), up-sells, etc. that make them purchase more often… Again, do the math and you’ll be amazed at how quickly the numbers raise.
3.5. Decreasing Customer Churn: Okay, here’s where I differ with my colleagues… I think this one is related to number 3, but not the same. Simply put, churn refers to the number of customers who take their business elsewhere or leave for other reasons.
If your average customer remains your customer for six months, think of how your profits would rise if you kept them longer! This is where it really starts to get fun. Here’s illustration of how you can put numbers 2, 3, and 3.5 ONLY to work…
Example Assumptions:
1. I am a widget retailer
2. I have just finished a widely successful customer acquisition campaign and now have 300 new customers
3. I’ve done my research and, on average, each of my customers:
• Spends $10/sale
• Purchases twice per month
• Stays with my company 6 months
4. Given this scenario, my 300 new customers will purchase $36,000 worth of widgets during their ‘lifetime’ with my company…
300 customers x $10/sale x 2 times/month x 6 months = $36,000**
Now I’ll keep the same formula but change one, or more, of the numbers with the amount of customers remaining constant.
1. 300 customers x $13/sale x 2 times/month x 6 months = $46,800 (23% increase)
2. 300 customers x $10/sale x 3 times/month x 6 months = $54,000 (34% increase)
3. 300 customers x $10/sale x 2 times/month x 8 months = $48,000 (25% increase)
4. 300 customers x $13/sale x 3 times/mon
For each and every company, their customer service department is almost as important as the sales department. Yes, you can sell, but are the customers satisfied with the product? Customer Service representatives hold the difficult job of serving as a buffer between the company and the customers. They soothe angry customers, answer silly and hard questions, at the same time protecting and upholding company policy.All business organisatio
3. Increasing the Average Number of Transactions per Customer: Let’s say your average customer purchases "something" from you twice a month… Now assume that you can provide them with services (e.g. free delivery), add-ons (expanded product line), up-sells, etc. that make them purchase more often… Again, do the math and you’ll be amazed at how quickly the numbers raise.
3.5. Decreasing Customer Churn: Okay, here’s where I differ with my colleagues… I think this one is related to number 3, but not the same. Simply put, churn refers to the number of customers who take their business elsewhere or leave for other reasons.
If your average customer remains your customer for six months, think of how your profits would rise if you kept them longer! This is where it really starts to get fun. Here’s illustration of how you can put numbers 2, 3, and 3.5 ONLY to work…
Example Assumptions:
1. I am a widget retailer
2. I have just finished a widely successful customer acquisition campaign and now have 300 new customers
3. I’ve done my research and, on average, each of my customers:
• Spends $10/sale
• Purchases twice per month
• Stays with my company 6 months
4. Given this scenario, my 300 new customers will purchase $36,000 worth of widgets during their ‘lifetime’ with my company…
300 customers x $10/sale x 2 times/month x 6 months = $36,000**
Now I’ll keep the same formula but change one, or more, of the numbers with the amount of customers remaining constant.
1. 300 customers x $13/sale x 2 times/month x 6 months = $46,800 (23% increase)
2. 300 customers x $10/sale x 3 times/month x 6 months = $54,000 (34% increase)
3. 300 customers x $10/sale x 2 times/month x 8 months = $48,000 (25% increase)
4. 300 customers x $13/sale x 3 times/mon
China’s economic power has been on an increasing rise ever since China opened up it economy few decades ago. This move has allowed China to develop and progress tremendously. The growth of the China market is overwhelming to both the Chinese and the world around. Statistics showed that China has been enjoying a two-digit growth from 2003, and its economic growth rate in 2006 even reached 10.7%.However, China market does have its risky s
If your average customer remains your customer for six months, think of how your profits would rise if you kept them longer! This is where it really starts to get fun. Here’s illustration of how you can put numbers 2, 3, and 3.5 ONLY to work…
Example Assumptions:
1. I am a widget retailer
2. I have just finished a widely successful customer acquisition campaign and now have 300 new customers
3. I’ve done my research and, on average, each of my customers:
• Spends $10/sale
• Purchases twice per month
• Stays with my company 6 months
4. Given this scenario, my 300 new customers will purchase $36,000 worth of widgets during their ‘lifetime’ with my company…
300 customers x $10/sale x 2 times/month x 6 months = $36,000**
Now I’ll keep the same formula but change one, or more, of the numbers with the amount of customers remaining constant.
1. 300 customers x $13/sale x 2 times/month x 6 months = $46,800 (23% increase)
2. 300 customers x $10/sale x 3 times/month x 6 months = $54,000 (34% increase)
3. 300 customers x $10/sale x 2 times/month x 8 months = $48,000 (25% increase)
4. 300 customers x $13/sale x 3 times/mon
A few years ago, a Fortune 500 company struck gold with a marketing theme.It was simple, direct, and it created a competitive advantage. Ads that the company ran said:“We understand the importance of LISTENING.”I happened to be a consultant to the company at the peak of this campaign, and I knew it was committed to walking the walk, not just talking the talk. It mandated that employees take listening courses on company tim
300 customers x $10/sale x 2 times/month x 6 months = $36,000**
Now I’ll keep the same formula but change one, or more, of the numbers with the amount of customers remaining constant.
1. 300 customers x $13/sale x 2 times/month x 6 months = $46,800 (23% increase)
2. 300 customers x $10/sale x 3 times/month x 6 months = $54,000 (34% increase)
3. 300 customers x $10/sale x 2 times/month x 8 months = $48,000 (25% increase)
4. 300 customers x $13/sale x 3 times/month x 8 months = $96,000 (267% increase)
** Remember, this is gross, (sale price less materials and labor) not net profit.
This is a very simple, but powerful, model. It clearly illustrates how important it is to find ways to grow your business geometrically with the customers you already have. Even better, it is far less costly, and often more effective to implement these programs than ones designed to acquire new customers.
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