They say that business is simple, but it is definitely not easy. I will explain only three ways in which businesses can grow. Without these three, be assured that your business exists only for a season
1. Recruit new clients.
This is the most difficult and most expensive option and the value your
business offers, the ability of your sales staff, your marketing
strategy and the extent to which the quality of your product/service
meets or exceeds that of the competition, are determining factors in the
arsenal of tools at your disposal in persuading consumers to buy from
your business. Recruiting a new client cost about 5 times as much as
keeping existing clients, and as so, requires hardworking.
2. Sell more to existing clients.
Learn to follow an aggressive price strategy. In other words, package a
service/product at special discounted prices – you do not need to
recruit new clients. Make sure the existing customers develop the habit
of just having to buy anything you have, in bulk, because of quality,
price, after sales
services (customer support), guarantees, and product positioning among
others. Information about changes or improvements in the
products/services should be readily available for customers, and must
not be misleading
3. Sell to existing clients more often.
Consider a loyalty card or a discount strategy for frequent purchases,
customers are enticed by very small tokens of appreciation for their
loyalty. Do not sell to or serve a customer and sit on your laurels.
Keeping following up on the customer to ensure they are satisfied and
require more of your products. A customer might as well feel honoured
just to be remembered. Give them special offers, special treatments, and
special respect
.
In
order to make informed decisions with regards to a suitable strategy,
especially to sell more to existing clients, the following dimensions
for business growth must be taken into consideration. The underlying
assumption is that reliable client and management information is
available.
• The size of the existing client base.
• Average spending per client.
• Frequency of spending.
•
Doing a sensitivity analysis – What would the business' turnover be if
there is for example an increase of 5, 10, 15, 20 or 50% in client
spending?
• Consider proposals to increase the transaction value. (Ways of "up-selling".)
• Consider proposals to increase the frequency of purchases.
There
are many side-line activities that can be considered to increase a
business' turnover and profit. However, these three tools/activities
form the basis for further consideration. Watch out for our future posts
on Business Growth.
For
more information, email: admin@myexcel.online or chat with us
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We just love business.
Wednesday, April 8, 2015
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