There are more than 3 ways to get clients.
But there are only 3 ways to grow your revenue and make more money.
This blog post will be focusing on the 3 ways to grow revenue, NOT all the different ways one can potentially grow their client base via sales, promotion, marketing and advertising.
The 3 ways are relatively simple:
Increase # of clients.
Increase Avg. $ per/ transaction
Increase purchase frequency
The most common way of increasing revenue has traditionally been to just get more clients.
But hold it,
If that's all you're doing in terms of increasing your revenue you are leaving a MASSIVE amount of potential profit on the table.
If you can increase the average transaction price AND figure out how to get your clients buying more often then you are going to see your revenue skyrocket.
Alright, let's break down the 3 ways to grow your business:
1. Increase clients
This one is pretty simple, so we're going to keep this brief.
ETHICALLY acquire more clients to increase your revenue.
What do I mean by Ethically?
You owe your clients a high level of service, placed their trust in you when they hired you, make sure you can service each client to high standards - don't let your quality of service drop because you took too many clients on. Hire more people if you can't handle your workload.
2. Increase Avg. $ per/ transaction
The second way is pretty amazing actually
"I can't just CHARGE MORE"
No one is expecting you to "Just Charge More" - However, you could provide a higher level value and in return for that value - charge more.
A perfect example of increasing the average dollar amount of the transaction is at the grocery store at checkout, hello candy bars.
You're already in the store - not just that,
YOU'RE ALREADY AT CHECKOUT!
You have everything you came here to get - BAM they hit you with the candy bars and squeeze a couple more dollars out of you.
There are tons of ways to do this after your client has bought something from you or while they are in the process of buying:
- Buying a car? How bout' that extra warranty?
- Going on Vacation? You can guarantee the agent will drop travel insurance on you
- Speedy lane oil change? We all know they're going to push some air filter on you
This strategy is used by businesses worldwide, but don't use it just to squeeze extra dollars out of your clients.
Find out what they TRULY NEED and it is your obligation to sell them that extra product or service. Build the transaction cost in a morally sound way. You would hate to break your arm in Mexico while ATVing on vacation and not have insurance, right? Of course, because it's ethical to sell travel insurance to people traveling.
Now on the other hand, if you are a car salesman and you're selling a little old lady the warranty on extra miles for her lease AFTER she told you she only drives occasionally, that's not ethical.
Don't do it. Period.
3. Increase frequency of purchase
Starbucks - you know it, you love it.
They have you buying every day of the week, on weekends, when you're happy and when you're sad.
How do they do it?
...Well technically, they use email reminders and a fantastic rewards system.
GOLD STARS - just like in kindergarden!
You get enough Gold Stars - you get a reward, incentivizing you to purchase more frequently.
Email campaigns are also SUPER effective at "reminding" your client about you.
A fantastic service that provides email marketing automation is Mailchimp
Alternatively, you can subscription-ize your service, examples of this:
- Dollar shave club
- Your cell phone company
- Your local Gym
- Magazines (If people still get those)
All these companies receive a monthly payment from you, in exchange you get their services.
It's a completely fair model (Excluding Canadian Cell Companies) for the consumer and the company.
The last example of this is similar to the Starbucks example, and you've probably seen local businesses doing it.
You know, buy 6 slices of pizza get the 7th free?
Rewarding a client for their loyalty to a brand, again an excellent way to increase purchase frequency.
Alright. That wraps up The 3 ways to grow a business.
Go out there and get your clients attention!
And don't forget to have a powerful day!
- Jack Heaton
Owner, Attention Exchange Media