3 ways to grow your business

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Lisa Thal

In sports, we like to say, “You’re only as good as your last game.” In business, we realize that “you’re only as good as your last customer.”

Customer attrition (also known as customer churn, customer turnover, or customer defection), is the loss of clients or customers. Everyone will experience this in business. Most industries will experience about 18-25% in customer attrition each year. How you approach replacing that business is key. We realize the cost of retaining an existing customer is far less than acquiring a new one. It takes time and energy to gain a new customer so we need to make certain that we provide value to them so we can keep them as a client. We must provide a sense of urgency to how we can solve their biggest challenge and create a road of growth for them.

If you own a company or if you’re a sales leader, you are often challenged with the following question: “How will I grow my business?” You have business expectations that you must meet every year and yes, each year your’e expected to deliver more. You expect your team to produce more revenue each year and your sales team expects to make more money each year as well. In order to find the best strategy to achieve these goals, you’ll need to ask yourself where your business growth will come from.

There are three ways to grow your business.
1) Increase the number of clients
2) Increase the average transaction value
3) Increase the frequency of repurchase

The approach you use will depend on your current business needs. When reviewing your client list, you may discover a variation of the strategies that will lead to more customers. In business, it’s a common rule that 80 percent of your business will come from 20 percent of your clients. You will need to understand your numbers to know the best strategy to grow your revenue and, in return, your client’s revenue. Taking the time upfront to identify where your opportunities are with your clients will pay big dividends. Discover which of the three options above is the best strategy for you. Is it gaining new customers, raising the average purchase order, or getting current clients to repurchase more often?

“The grass is greener where you water it.” – Neil Barringham

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