The goal of any successful business is to grow. To many entrepreneurs, this simply means sales. Often this leads to pouring more money into advertising campaigns. But growing a quality lasting business is more than just drawing new customers to your service or products.
It also includes evaluating existing products, maybe adding or changing inventory, engaging existing customers and effectively using your greatest assets – your employees.
Developing A Strategy For Successful Goals
Start with strategy as you begin the process. Focus your time and energy evaluating where you are, where you want to be and paths you can take to get there. Make lists of everything; assets, customers, employees. If you create a vision of where you want the company to grow you can envision a path from there back to where you are now, developing goals and a direction to achieve your planned target. Consider existing inventory and sales, the return rate of customers you now have and the people who have worked to bring your business to where your current position. You should always focus on targeting new consumers and thus, developing a customer-centric strategy is vital. Here are 27 unexpected tips to attract new accounting customers which contain points which apply to all sorts of businesses. Pick the ones that you can probably use for your business genre and add them up to your goals.
Valuing Your Greatest Assets: Employees
Assuming you have a goal to develop a well-oiled, efficient company with satisfied customers who are happy to refer you to others while reaching higher sales goals, the best place to begin the journey to growth is with your current employees. They are a treasure trove of information you can’t get anywhere else. They often know more about the company’s customers, products and daily operations than you. Engage them. Make them part of the process. Give them a sense of ownership in the company and they will have a stake in the business success.
Turn your employee relationship building/brainstorming session into a company game show. Use a version of Jeopardy, The Feud or other games to grow company loyalty while gathering information to use to benefit company growth. You will discover what rewards or incentives will make them want to work harder, how to increase efficiency, how they feel about existing products, ideas for new products, customer feedback and suggestions to reach current customers and bring in new customers. Check out team bonding sites for game show ideas or contact the professionals who can provide you with such services and help you to conduct such events.
Employees deserve to be fairly compensated. They will be loyal and great assets to your business if they believe they are really appreciated. Involve them in company success and reward them appropriately. Offer them extra benefits, raises, time off, bonuses or other incentives as you reach specific targets together. Ask them. They will be happy to let you know what they most desire. Your success becomes your success.
Refreshing Product Inventory
Often in business products need to be refreshed. There may be certain products that are blockbusters and others that barely move. Sales records, inventory records and employees will give you the stats you need. One greeting card company added new cards each year. They sat all the employees down at the big conference table showing everyone the preliminary artwork for new design ideas. Three stacks were created; blockbuster, okay and doubtful. Employees also commented on colours and new product ideas. Management followed employee recommendations and seldom had a poor selling product.
A review of sales records and returns will show which existing products should remain in inventory and which should be abandoned. When you looking to upgrade or add new products consider asking your workers. They deal with customers and hear recommendations, ideas and concerns. They are familiar with the products and will have a good idea of inventory products that will be profitable and beneficial to the business overall appeal.
Customer Acquisition Costs And Growing Revenue from Current Customers
Customer acquisition costs are determined by the total marketing budget divided by the number of new customers acquired. For example, spending $1000 on advertising to obtain 100 new customers means your new customer acquisition costs if $10. How effective this is will be determined by average sales per customer. If the average sale is $20 and your product cost is $5 then that leaves you $5 per sale to cover overhead. It is not cheap to obtain new customers. Statistically, internet travel companies have a $7 average customer acquisition fees, retail stores $10 while financial investment firms spend an average of $175 per customer. Did you know that 65% of loyal customers will return if you market to them?
You reduce or eliminate acquisition costs by marketing to and retaining existing customers. According to statistics from Invesp it costs 5 times as much to marketing to new customers than existing customers, yet 44% of companies focus on new customer acquisition compare to 18% who focus on retention. Your current customers know your business, have experienced your products and services and are more likely to purchase again from you. They are also 3 times as likely to purchase more. Market to them and consider offering incentives for greater sales. Studies show that when incentives are offered to returning customer as part of a customer retention campaign up to 80% of total sales can be generated from returning customers.
When marketing to new customers considers running small advertising campaigns. Statistics of costs can offer suggestions for changes in non-performing efforts, reduce costs and increase the effectiveness of the overall marketing efforts. Improving past marketing programs reduces customer acquisition costs and leads to stellar growth. The keep is to state small and be willing to make changes.
Consider offering customer incentives as part of acquisition efforts. Choose a few desirable leader products offered at great prices with little profit. New prospects don’t know you yet and the loss-leader approach to marketing can earn you a customer for life. Provide a quality product, stellar customer service and directed retention efforts and your customer acquisition will earn you far more than first realized. When you build customer relations you are 60% more likely to continue to do business again.
As you can see. Company growth goes far beyond making a few new sales. It is a process involving improving product selection, engaging employees, valuing existing customers and directing targeted advertising to draw new customers.