Whatever industry you’re in, making the company bigger and better is a constant target. And the only thing better than growing the business is doing it without spending lots of money. After all, this will mean you’ll be left with more cash to spend on other things.
Growth can be achieved in several ways. While the obvious answer is to gain more clients, you could also look to find ways of increasing the number of transactions per customer, revenue per customer or decrease spend to increase margin. If you can accomplish those goals without increasing your expenditure, it can only bring positive results for the immediate and long-term future of the company.
Growing the company with more efficient marketing
Let’s face it; getting more people through the door (of your store or website) is one of the best ways to see increased revenue. Even if you are looking to generate increased offline sales, the switch from traditional marketing to digital strategies will reduce your marketing costs.
While paying for advertising does work in some situations, it will often fail. Moreover, you’ll find that you need to sell more products to cover the costs of those campaigns. There are several methods to generate leads by investing time rather than money, including:
- Start a blog to provide relevant content for SEO purposes via keywords and backlinks as well as increased traffic through social sharing. This option can also give you a chance to show off certain products and services, especially when you utilise video and images.
- Build an email newsletter subscription list and send calculated email streams to promote products and push clients towards the responses that you desire from them.
- Make good use of free services such as social media platforms like Facebook, Twitter, and Instagram. Be sure to sign up for your free Google My Business listing and add your details to other directories on the market too for further visibility and awareness.
- Outreach to other companies and influencers by telling them about your products. Don’t be afraid to ask for links to your site as the worst they can do is say no.
- Utilise affiliate marketing schemes in which you reward existing customers for bringing new customers and sales to your business. While this does technically cost more money, you only pay them once you’ve made sales, so it’s a financially sustainable model without risk.
There are plenty of additional ways to boost your presence reputation through cost-effective (and often completely free) marketing strategies. With the best ones at your disposal, greater success and faster growth are assured.
Growing the company by building a community and brand
While getting more people through the door is the big aim, it should be noted that repeat customers hold the key to your long-term growth and sustainability. The Customer Lifetime Value (CLV) is an incredibly important metric to track and monitor. So make sure that you do.
The best route to increased revenue per customer is to focus on the increased frequency of purchases and increased spending in each transaction. There are a number of strategies which can be deployed to make that happen. Some of the best ones are:
- Use reward schemes and incentives that encourage existing clients to either spend more (such as free delivery after spending a certain amount) or to make a repeat buy (such as 10% off their next order) to make them feel more valued. Timed incentives work particularly well too.
- Ask consumers what they want to see from the business and act upon those ideas. You’d be amazed at how well they respond to this increased interaction and participation levels.
- Personify your brand. A clear vision and consistent approach that resonates with the target market will lead customers to respond far greater. This can include outside ideas such as going green. When consumers like the people behind the brand, they are more likely to increase their spending.
- Offer repayment plans that let customers spread the costs. This removes a potentially huge obstacle. So, as long as you be careful to avoid bad debts, this may lead to increased frequency and amounts.
- Upsell in a passive manner. Trying to push extra items in a forceful manner rarely works, and can discourage customers from returning. Conversely, asking what they might need help with before providing possible solutions to their problems can work wonders.
Customers want to feel valued, and also need to have options. If you can do this while also portraying the brand in a positive fashion, it’s likely to bring serious improvements. It’s said that 20% of your audience will generate 80% of your revenue. Identify them and treat them well.
Grow the company by reducing the expenses
Reducing the expenses might not necessarily improve the revenue, but it will boost the profit margins. In turn, this will be reflected in the accounts and can enable quicker growth in some of the areas that do require additional investments.
However, it’s important to strike the right balance between cutting costs and maintaining the same standards as before. You cannot compromise the quality of products or customer care without losing valuable customers. Focus on cutting costs in the following ways.
- Outsource jobs that will save you time and reduce the direct recruitment costs. Obvious candidates include adding automated virtual receptionists or using outsourced HR and admin facilities. However, the full list of potential tasks to outsource for these reasons is huge.
- Consider outsourcing jobs that will allow you to operate from a smaller business location too. This could mean outsourcing your IT, packaging and delivering, or storage facilities.
- Appreciate that time is money and utilise modern communication tools. If an email or group message can save you from holding a team meeting do it. Likewise, project management tools can increase cohesion and collaboration, ultimately improving your bottom line.
- Always take the time to check your ongoing utility and insurance costs. Changing a plan or provider can save significant sums, especially when you take out a longer-term plan.
- Cut the waste. From cutting unnecessary data packages to choosing greener technologies or replacing employees with automated systems, those savings will soon add up. This is especially important when handling indirect business costs.
While reducing the figures in your outgoings column won’t directly grow the company with immediate results, the outcomes will naturally open the door to more opportunities. Better still, it sets better foundations for when you do start the next chapter. Perfect.