Grow Your Business by a Minimum of 33.3%

We sent out 4 proposals this week to business owners who want to grow their companies.

So while it was on the top of my mind I thought I’d share a quick lesson with you guys.

Hope it helps get the wheels in your brain spinning.

Let’s start with simple math to show you how to grow your business by a minimum of 33.3%.

Let’s say you have 1,000 customers.

Your Average Order Value is $100 per sale.

And your clients buy from you 1 time per year.

Which means your company makes $100,000 per year.

Not bad. But not where we want to be either.

Let’s see how we can increase that by a minimum of 33.3%.

Step #1: Increase Your Client Base by a (minimum) of 10%

How? 

Implementing (or optimizing) a Website Pop Up + Welcome Flow

Websites alone convert people into customers or clients at a very low rate. That’s why when they go to your website we want to give them something of value in exchange for their email. From there you create a series of automated welcome emails for new subscribers that introduce them to your brand and guide them towards their first purchase.

Using our example from above, by capturing these new leads with a pop-up on your website homepage and converting them into customers, you can add at least 100 more customers to your base, totaling 1,100 customers.

Projected Impact to your Business: A 10% increase in your customer base adds an additional 100 customers. Which brings our new customer count to 1,100.

Step #2: Increase Your Average Order Value by a (minimum) of 10%

How?

1. raise your prices by 10%, that simple

   and/or

2. increase your customers average order value by upselling them products/ services that compliment their original purchases… specifically: Implement a Post-Purchase Upsell Sequence

   Post-Purchase Upsell Sequence: After a customer's initial purchase, send automated emails suggesting higher-value products or complementary items. This strategy encourages customers to spend more per transaction.

Projected Impact to your Business: Using our example from the beginning, our new Average Order Value is $110 (up from $100).

Step #3: Increase Your Customers Frequency of Purchase (and/or referral rate)

Said another way, get them to buy from you more often.

How?

1. Implement a Win-Back Sequence

2. Implement referral request

3. Implement a “Subscription Tier Upgrade” sequence

Target past customers with emails encouraging them to repurchase or return after a period of inactivity. Highlight new products, special offers, or updates to your service. If your product is refillable let them know it’s time to replenish their inventory.

Projected Impact: Increase the purchase frequency from once to 1.1 times per year (obviously someone can’t buy from you 1.1 times; but if we managed to get 10% of people to rebuy then it would average to a new purchase frequency of 1.1).

Adding It All Up (Total Projected Growth):

Here’s the formula: Increase Your # of Clients by 10% + Increase the Average Order Value by 10% + Increase Repurchase or Referal by 10% = You Grow Your Business by 33.3%.

With these strategies, you are able to grow your business from $100,000 to $133,100

But that’s not even the best part.

What do you think happens to your profit? Will your profit only be 33.3%?

No!

Since you’re already covering most of your overhead already a large portion of this goes straight towards your bottom line profit!

So let me ask.

Do you believe there are potential avenues to increase your current product or service's customer base by 10%?

Do you think you could find any way to get 10% more for your current product or service even WITHOUT much enhancement? What if you did enhance your product/service or add another complimentary offering for up-selling and cross-selling opportunities? 

Finally, what about if you worked at really serving your customer and all their needs even after their initial purchase focusing on the entire lifetime and journey of your customer, could you get them to buy 10% more often? Or have them refer you only 10% more often?

That’s 33% growth.

Simple right?

Now imagine if we aimed bigger.

Let’s use the same example but instead of only 10% increases, let’s say we got more aggressive and saw more substantial growth across the board.

We can even be patient and say it took us 6 months to a full year.

Let’s run the numbers.

This time around we increased the amount of customers from 1,000 by 33%, which would be 330 more customers.

New number of clients = 1,330.

Next we increase the Average Order Value by 25%. So now instead of $100, each customer would spend $125 their first time shopping with you.

Lastly, we increase the repurchase rate or referral rate for your customers by 100% so now your clients buy from you 2 times per year (instead of only 1 - simple right?)

Your $100,000 business is now a $332,500 business (or 232.5% growth).

Do you think you could do this for your business in a year?

Take the formula above and plug your numbers in to see what’s possible.

Play around with the numbers a bit. Do it now. Get out a pen and paper or write it out in a notes app.

• How many clients do you currently have?

• What’s your average value per sale?

• How often do your customers repurchase per year?

• What’s the revenue of your business?

• What are your profit margins?

You HAVE to know these numbers. If you don’t go find out ASAP, but for now estimate the numbers just so you can get a feel for what is possible in your business with the right strategies and tactics

Memorize This Formula:

Increase Your # of Clients by 10% + Increase the Average Order Value by 10% + Increase Repurchase or Referal by 10% = You Grow Your Business by 33.3%.

That’s it for now.

Thanks for reading!

If you enjoyed it, all I ask is you take 20 seconds to forward this to someone you think would also enjoy it.

Cheers!

-Hunter