The ‘Golden Goose’ In Your Business- Tips from Business Adviser
As a business adviser, I like to get out regularly to chat with local business owners about their level of success and to ask them what they see as the best way to grow profitability. It’s the best way to learn about new and innovative business strategy examples.
my rational brain says ‘yeah sure’ which is then promptly shut down by my emotional brain saying ‘quickly get some, I’m going to miss out’
The first reaction is to say that gaining new customers is the best way they can think to increase the value of sales.
While new customers are important for any business, your quickest and easiest way to increase the value of sales is in an asset that is sitting right under your nose.
This is the ‘golden goose’ found in each business and it is the customers you already serve.
Building an ongoing relationship with these people is some of the best marketing you can do and one of the easiest ways to generate additional sales.
Gaining a new customer and getting the first sale is just the first step, there are things you can do inside your business right now to;
- Increase the number of visits each customer makes
- Increase the amount each customer spends on each visit
It’s surprising how many owners don’t realize how powerful these business strategy examples are!
It’s not really a secret that it costs about 5 times more to win a new customer sale than it does to generate one from an existing customer. These are proven business strategy examples you have to think about.
Bazza The Butcher
There’s a local butcher near me who is a master at this, he’s been perfecting this for the last 40 years.
Most of his customers are locals in the area and he has to compete with the larger supermarket chains who can offer cheaper prices and greater convenience.
He can’t outspend the big supermarkets on marketing so his strategy is to treat his existing customers like royalty and turn them into raving fans.
This will generate maintain his customer numbers and over time provide a small increase through ‘word of mouth’ referrals. Business strategy examples like referrals should always be respected.
He knows through experience that the easiest way to increase sales is through existing loyal customers, not by trying to acquire new ones. He could have been a very successful business adviser!
As a business adviser I wonder ‘What’s the potential dollar impact?’
Let’s say I shop there every 2 weeks and spend $70 on mince, sausages and a few steaks making my average yearly spend around $1,820.
That means If I’m a customer for 10 years my lifetime value is $18,200.
Each time I go in there we have a bit of chitchat, he builds rapport and understands that he’s not just selling meat.
What he is selling is advice on how to prepare a great meal and create an experience for the family.
We get to talking about supermarkets and how the food contains preservatives, the best way to cook a lamb roast and the fact that he’s just finished preparing some high quality ‘butcher’s’ sausage rolls.
The sausage rolls usually ‘sell out fast’ he says, my rational brain says ‘yeah sure’ which is then promptly shut down by my emotional brain saying ‘quickly get some, I’m going to miss out’
Before I know it I’ve added a $15 pie, a $13 jar of natural low sugar pasta sauce and a $12 pack of high-quality sausage rolls. What an amazing salesman and business adviser!
I could have bought these along with my regular shopping at the supermarket but I paid more at his store because it’s good quality and I’ve now added $40 to my purchase every 2 weeks.
After a few visits, it becomes a habit and I’ll probably get these items regularly now so my average spend per 2-week visit is now $110.
My average yearly spend increases to around $2,860 and my lifetime value to him is now $28,600 or a 57% increase. A good business advisor will tell you how important these numbers are.
What a master!
Imagine the impact on the bottom line of your business if you repeated this process for your customers…
Note also how he doesn’t have to discount to get more business, that’s the fastest way to kill profitability lose to the competition.
A 3 Step Plan You Can Start Using Today
A successful business adviser’s 3 step plan. So let’s break down this simple approach into 3 steps so you can apply it to your business today;
- Understand the business you are in, you’re not just selling a product or service but providing a solution to a problem with a package of benefits that people will always pay more for.
- Focus on building rapport with your customers, treat them like royalty and they will do your marketing for you providing a source of new referrals.
- Understand the lifetime value of your customers and work to increase the average sale, provide new and high-quality products complementary to their essential purchases.
And all that for little or no marketing dollars spent, just some time invested to build personal relationships. Thank you for reading about my top business strategy examples!
© Copyright 2020 Reboot Business Strategies Pty Ltd.
P.S. Reboot is offering a full business reboot strategy and consultation to 5 qualified candidates in 2020.
This is a free offer (worth over 10K) to three business owners willing to take action towards their success and share that process with our community www.getrebootednow.com
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