10 Tactics to Profit Acceleration
As a business owner I know that in this day & age that you’re busier than ever – revenue and profits are critical to the survival of your business but you lack the time & resources to take your business to the next level.
I understand the need to quickly introduce effective ways to increase both revenue & profits with as little out of pocket expenses incurred as possible – these can be implemented with the smallest amount of effort, time & expense. Each strategy will impact your overall revenue and profits dramatically, even if each one produces just a 5% increase in sales.
This is the power of exponential growth - you'll be able to see this for yourself as you implement each strategy. A 5% increase is a very conservative number - my clients often see far higher returns, but I like to under-promise and over-deliver.
Here are 10 effective strategies to achieve this growth :
1 - INTERNET MARKETING
There are numerous ways to grow your business through the internet and the possibilities are growing by the minute.
ADVERTISING - the benefit of this strategy is that you're not limited in geographic reach and you can be highly selective with your target audience.
SOCIAL NETWORKING - this provides increased brand recognition and loyalty along with higher conversion rates because you're being social and a cast decrease in marketing costs.
BLOGGING - zero cost to do but your time this really increases your rankings online with links.
SEARCH ENGINE OPTIMISATION (SEO) - this is the practice of getting your website ranked at the top of search engine results without advertising.
ONLINE PRESS RELEASES - provide credibility and could lead to interviews with the media, on average 1 media interview could have 5 times the impact of a paid advert.
VIDEO MARKETING - If a picture is worth a thousand words, a video can have an even greater impact on your target market.
You don’t have to be an expert in all these options, but you could do with the knowledge in house or outsource to those that do have the knowledge.
2 - DOWNSELL
Downselling means backing off from your original offer when your potential client appears to reject it – offering something less expensive or of lower quality, then once you establish the buying relationship, upselling and cross-selling at a later date.
The key idea is to get the buyer to enter into a long-term relationship by at least persuading them to buy something. It is much easier to sell to a client than to sell to a prospect.
First time buyers are always sceptical – but the fact they have come to you in the first place is something to be celebrated, therefore you have their momentary trust no matter how guarded.
For example have you ever been offered a full year membership to an online subscription or health club etc. and when you don’t take it up you’re offered a 3 month initial membership or even a 30 day free trial?
The odds of you staying or continuing to buy if you accept a downsell goes up exponentially.
Once a client enters into a buying relationship, no matter how small, you then need to think long-term as to how you can serve that customer best to keep them on board and buying.
3 - DRIP CAMPAIGN
When a prospect doesn’t buy what you sell, how many times do you follow up with them?
Small business owners focus on generating leads – but less than 1% of prospects are now buyers the other 99% are not ready to purchase at that specific time, but many could buy at some point in the future if you continue to nurture them and stay in contact with them in an ongoing basis.
Why is this important? 80% of ALL sales occur between the 5th and the 12th point of contact.
If you give up after 1 or 2 attempts then what you’re selling must not be very important!
This is where the drip campaign and follow up sequence comes into play. A drip campaign automatically delivers a form of communication to customers or prospects on a predetermined and scheduled basis.
4 - MARKETING & ADVERTISING SECRETS
Do you have a website?
Do you know for sure how many leads it generates each month?
Do you know for sure how many sales it produces each month?
Most business owners have no idea – can I show you why your website isn’t generating any leads or closing any sales. The key to success.
You must be able to enter the conversation taking place in the minds of your prospects.
You must be able to address the number one question on your prospects mind at just the right time.
It’s easier than you think – the question in all prospects mind revolves around 2 major points:
There’s a problem they have and they don’t want and there’s a result they want but don’t have.
CONVERSION EQUATION : INTERRUPT -> ENGAGE -> EDUCATE -> OFFER
INTERRUPT = Headline – first thing someone see’s or hears.
It must address the problem your prospects have and don’t want.
ENGAGE = Sub-Headline – 2nd thing they see or hear
It must address the result your prospect wants but doesn’t have
EDUCATE = Information you provide – presents evidence to your prospects that you and your product or service are superior in every way to your competition..
OFFER = Must create a compelling offer that makes it so irresistible your prospects can’t turn it down.
5 - JOINT VENTURES
Joint ventures involve 2 or more businesses that decide to form a partnership to share markets or endorse a specific product or service to their customer base. Usually under revenue share basis.
The key is to find partners who service the exact same type of clients that need or want what you sell. You can find other businesses in your event chain.
For example a florist can get referrals from above them in the event chain i.e. jeweller, church, wedding planner, reception venue, dress. But also pass on referrals to cake makers, cars, dj / band & accommodation.
This is a strategy that can be implemented immediately and it begins generating instant cash flow.
6 - INCREASE PRICING
Ever asked yourself how much more could I make if I simply increased my prices?
Optimising pricing is difficult and could be dangerous if you simply go for an increase of 5% across the board approach. You could lose some or all of your business.
How can you raise prices and get away with it? BUNDLING
This is the process of grouping together certain products to create packages which you then sell.
Eliminating the biggest complaint small businesses have of competing on price – you’re now offering more value. Customer shop value not price.
Bundling increases the perceived values o prospects buy more.
7 - UPSELL & CROSS SELLING
Easy & simply way to explain this strategy is using McDonalds as a case study – when you go in and order your meal, what do the staff always ask you?
Would you like to go large on that? - This is upselling
The same member of staff will then ask
Would like apple pie or a McFlurry with that? - This is cross-selling
These strategies are worth an extra $1.6 billion in revenue to McDonalds every year !
Upselling means offering a higher grade or quality or size of the item that the customer may be interested in at the point when the customer is ready to buy.
Cross-selling means offering other products or services which complement the item the customer is interested in, at the point the customer is ready to buy.
34% of prospects will buy additional products or services at the time of their original purchase if they’re asked to do so – if you don’t do it they won’t !
8 - REACTIVATE FORMER CLIENTS
Why do clients stop doing business with you? It may have nothing to do with the way you conducted business together in the past. There are many possibilities some of which could be
· They’ve been busy
· They’ve had something happen in life that has distracted them
· They simply forgot
Other things in life just come and get in the way – because these clients already know so much about you, unless their circumstances have changed dramatically or they had a bad experience with you in an earlier transaction, they could well be prepared to do business with you again.
As an example – a yoga studio had 200 paying members and 400 past members, so they sent an email to the past members and 30 started again giving an instant increase of 15% !
Three keys to effective implementation
1. Clearly communicate your most compelling benefits – show them they’d be foolish not to come back to you.
2. Make them an offer to help them feel valued and special – bundle something else in.
3. Be systematic and persistent in your effort
Remember this is not just about the sell – you’re there to rebuild an ongoing buying relationship with your client.
9 - POLICIES & PROCEDURES
This is the most boring and non-sexy of all the strategies, but finding an impact may be one of the easiest ways to optimize your profits.
Ask yourself – are your marketing and sales processes documented so that sales are predictable?
To what extent are all your system, processes, policies and procedures in place?
Without policies and procedures your business can never maximise on all the opportunities with which you’re presented.
Policy example :
Each person in your business must write a “to do “ list at the beginning of the month – divide this into weekly action plans and then you have daily to-do lists.
The supervisor will inspect each monthly to do list, each weekly plan and daily to do list.
What do you suppose happens to the productivity of that staff member, if they know they are going to be held accountable to their own created list ? This Creates focus and keeps staff accountable much like a Business Coach for business owners.
On average this will increase productivity by 20% which in turn increases revenue & profits
This strategy takes time and hard work – and is ongoing to make sure they are monitored and adhered to, but this is the key to running a great company and to great marketing.
If you incorporate policies, procedures and rewards or consequences for your staff to follow, and you follow through on them what impact would that have on your business?
What about policies & procedures for a client call format? For follow up? Post sale reassurance? Relationship building? Enforcing upsell, cross-sell and downsell strategies? To reactivate former customers? To ensure drip campaign is working? For cost cutting? For all internet marketing initiatives?
No cost involved but your time.
10 - COST CUTTING
This is the one guaranteed way of keeping more money in your bank account. Good business owners will review their costs and try cutting those costs at every available moment.
To better get to grips with this you need to understand the difference between Gross Profit and Net Profit.
Most business owners use Net Profit to determine the extra revenue I find them – this is a mistake because net profit is determined after ALL costs are taken out.
However, adding additional revenue which does not incur an increase to fixed costs such as rent, salaries etc. will increase profits by the gross profit margin i.e. the revenue minus any direct costs eg sales commissions, credit card fees etc.
The additional revenue you gain from following my strategies will count as gross profit not net profit, but the better news for every penny you cut off your costs, goes straight to your bottom line. You get to keep all 100% of your cost savings.
Areas where you can save money :
· Hours of Operation
· Cash Management
I’ve just explored, from a high level, 10 of the 25+ ways I know how to dramatically increase the revenue and profits for any business – I’ve kept the potential increases conservative, allowing under-promising and over-delivery this makes sure the strategies are realistic, believable and achievable.
I hope you can see that these minor increases over the 10 areas are easily attainable by any business and would more than double your profits.
If you incorporate more than 1 of these strategies, which are easily duplicated by any business, consider the exponential growth you’ll experience within your business.
If you’re ready to double or triple your profits and would like to know more then just contact me and let’s get started !
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