Did you know that about 67% of businesses plan to expand every year? It takes considerable effort to successfully scale a business. In the beginning, you have to be the operations manager, deal with sales and marketing, understand taxes and corporate compliance issues, and more. It eventually takes a toll on you.
The good news is if you clear your mind and look at things in perspective, you can grow your business in three simple ways. These include acquiring new customers, increasing the average transaction value, and increasing the customer’s purchase frequency.
Here’s how to make your business grow:
1. Getting New Customers
Customer acquisition is a crucial aspect of business, regardless of size and age. It allows your business to make money to pay employees, meet operating costs, and reinvest in growth. It also allows you to show evidence of traction to influencers, investors, and other relevant parties.
But how do you get new customers?
Getting new clients often starts with marketing to the right people. However, there are more creative ways to approach the problem and get results. For starters, customers are more likely to engage with you if you offer value and education rather than try to sell them something.
For example, this blog post on “what size water softener” can draw more customers for a water filter company than a catalog that simply lists products and prices.
Other creative ways to grow your business include crafting a unique business personality, hosting virtual events, building a social media presence, leveraging word of mouth, and being clear on the problems you solve.
2. Increasing the Average Transaction Value
Increasing the average transaction value comes in handy when you don’t have enough capital for customer acquisition or don’t want to risk buyer resistance for raising prices.
It involves getting your existing customers to spend more on your business. Because you don’t have to expand your customer base, increasing the average transaction value allows you to generate more revenue with lower overhead costs.
The first step will be calculating the current average transaction value. You’ll use it as a baseline for measuring the performance of your efforts. Use the formula below:
Amount of Sales / Number of Customers = Average Transaction Value in a Given Week, Month, or Year.
With your baseline in mind, you can get to work and implement strategies for increasing the average transaction value. Flash sales, promotions, quantity or bulk discounts, bigger ticket items, and asking for addons at the point of sale are some of the ways you can get your customers to spend more.
3. Increasing the Frequency of Purchase
The last piece of the puzzle is getting your customers to come back and buy more from your business more often. When it comes down to it, increasing purchase frequency is about investing in customer relationships.
Understanding your customer’s existing habits is crucial to the success of your efforts. Emails that include “Special Limited Offer” or reminders to renew their subscription can encourage them to make purchases earlier than they planned.
Other strategies to help you increase purchase frequency include bounce-back offers, loyalty programs, retargeting ads, and capitalizing on special days.
Grow Your Business in 3 Easy Ways
It will take a while for your efforts to materialize. You just have to be patient and not let obstacles get in your way. Don’t be afraid to refine your approach as your business grows and evolves. To learn more about how to grow your business, read our latest business blog posts.