Are you a business owner searching for ways to enhance your company’s growth and succeed in the competitive market?
Jay Abraham, a respected business consultant, developed a method for the three most effective ways to expand any business. Understanding these methods and how to put them in place can revolutionize your brand both now and in the long term.
In this article, I’ll share with you each of Jay Abraham’s three key methods. Including tips on how to execute them so that you can take advantage of all that they have to offer!
Key Strategies for Business Growth
Increase Your Number of Clients: Convert More New Prospects into Paying Customers
For any business, having strategies in place to increase leads will lead to business growth. To increase your lead to customer ratio, you need to understand your target audience and develop an effective marketing plan.
Additionally, top-of-funnel tactics can be very helpful when trying to reach more people. Top-of-funnel tactics include content marketing, social media marketing, and paid ads to cold audiences. Additionally, you may reach out to the media for appearances and promotions. You can explore opportunities for partnerships or collaborations with influencers or other businesses. These strategies have the potential to expand clientele and bring new prospects.
The downside of this method? If you don’t have your backend systems set up to nurture your new customers, your front-end lead acquisition will not be effective.
Before investing in any ads for new leads, make sure your funnels are tested and functioning with a high conversion rate.
Increase the Average Transaction Value: Get Each Customer to Buy More at Each Purchase
Business growth, and success largely depends on increasing the average transaction value.
One key strategy to boost sales and get each customer to buy more at each purchase is to add upsells, bump offers, and cross sells. You can also include special discounts and loyalty rewards or free shipping.
When a customer goes to purchase one product or service, on checkout (or on the sales call), offer to add in additional products/services at a discount rate for a bundle. Provide an offer for similar products and services that may work together.
Of course, you also want to be providing excellent customer service –
eCommerce stores, you can offer live chat during the order process. Offering a wide selection of products can also entice shoppers, giving them a larger variety of items to choose from so they’ll buy more than what’s necessary, resulting in an increase in the average transaction value. Implementing the right key strategies for business growth will help maximize your store’s earning potential.
For business consultants, provide options for each proposal for your clients to pick and choose from. Make yourself available for questions as they are considering your options.
Offering a variety of options to your customers and providing them with excellent customer service throughout the ordering process will increase the average transaction value for each purchase.
For more information on strategies to increase the average transaction value, check out this blog by Motley Fool.
Increase the Frequency the Average Customer Buys From You: Get Each Customer to Buy More Often.
Did you know that studies show that a 5% increase in customer retention results in a profit increase of 25% to 95% AND retaining customers is seven times less expensive than obtaining new ones?
One key strategy for business growth is to increase the frequency with which the average client buys from you. That means getting each customer to purchase from you more often.
Studies show that customers who purchase more often become more loyal, allowing businesses to better harness market loyalty, build relationships, and ultimately achieve greater sales.
One way to do this is through targeted promotions and leveraging rewards programs that incentivize customers to buy more frequently. This can also be done through increased education about the products or services of your business so that customers better understand your value proposition.
Of course, you don’t want to forget about obtaining feedback through net promoter sequences and testimonials so that you can understand your customers and what works and what didn’t.
While these may not be easy strategies to implement, they can have lasting impacts on a business’s bottom line as long as they are used thoughtfully and consistently.
Where Do We Typically Focus?
Out of these three ways to grow a business,where do we typically focus?
In my experience, most people are always trying to acquire new leads (#1) when the real focus should start with working with your existing customers.
Once you have an established customer journey, then you can work to increase the leads coming into it. It’s so common for businesses to focus on new leads, but then not have a way to nurture them into increased and more frequent purchases.
The Easiest Way to Grow a Business
Business consultant Jay Abraham developed three ways to grow a business, they include:
- Increase the number of new leads becoming paid customers.
- Increase the average transaction value of each sale.
- Increase the frequency that each customer purchases from you.
You can use these methods to help boost your business’s overall sales and profits faster. It is important to remember that while a successful business should prioritize increasing its user base, it should also focus on strategies to raise its average transaction value and frequency of purchase.
Growing your business through multiple angles helps keep focused on long-term success.
So, now it’s time for you to ask yourself: what other ways have you tested or could you implement in order to grow your business?
Doing so has been proven as a valuable approach that rewards companies that are able to break out of their comfort zone and bring something fresh and innovative into the marketplace.
Make sure to get creative, research, network, and test out all kinds of different strategies – don’t be afraid to go big! When done properly, putting in those extra efforts can mean great things for the success of your company.