Excellent Business Tips How To Grow Your Business When a business has been setup, the next stage is for it grow. Clients are the backbone of the business, the increase or decrease in number clients and the change in clients spending on your business impacts directly on the business. There are 3 ways that customers’ activities affect the growth, and of course the decline, of the business: 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 and the expectations of the clients, are determining factors in the arsenal of tools at your disposal in persuading consumers to buy from your business. A new products also means the need for new clients and as so it requires extensive marketing, advertising, and communication with the clients. Once the new product is on the market, and the market demands the products, the business is set to grow. A new product may include the extension of the product cycle, which is comparable to product re-invention when it is facing decline 2. Sell more to existing clients. Follow an aggressive pricing strategy. In other words, package a service/product at special discounted prices – you do not need to recruit new clients, they will recruit them for you, or they will simply want to get everything from you. Honour them even with the smallest token of appreciation, it motivates the customer immensely. Check on them how your previous services to them is affecting their business, they will know you are nor only after selling a product/service but after ensuring their met needs are addressed. When a customer is followed up to ensure satisfaction, they will not only come for more services but they will also be ready to pay more to maintain the standard 3. Sell to existing clients more often. Consider a loyalty card or a discount strategy for frequent purchases. Repeat some of the tips on the step number 2. You must not relax after serving a client or selling a product, you must look at the next product or find out when you should repeat a similar transaction. Keep your clients up to date with new products/services, price changes, discounts, promotions, and above all, information of how they can get the best out of the current products/services. Include tips on how to use the products so they quickly come and buy more, in that way they remain loyal even in the stiffest of competition. 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. (Value Added Services/Products) • 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, the 3 tools or actions above form the basis for further consideration. In my next post, I will talk about calculating the value of customers by their spending. wp.me/p4dJwJ-jQf
Posted on: Tue, 13 Jan 2015 20:25:00 +0000
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