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8/19/2019 E_Book 4_Three Proven Ways to Grow Your Business
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Three Proven Ways to Grow YourBusiness
8/19/2019 E_Book 4_Three Proven Ways to Grow Your Business
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Disclaimer
Every effort has been made to make this manual as complete and
as accurate as possible. However, there may be mistakes bothtypographical and in content. Therefore, this text should be used onlyas a general guide and not as the ultimate source of publishedinformation. Furthermore, this manual contains information only upto the printing date.
The authors, advisers and publisher shall have neither liability norresponsibility to any person or entity with respect to any loss ordamage caused or alleged to be caused directly or indirectly by theinformation contained in this manual.
This is NOT a free e-book!
Purchase of this e-book entitles the buyer to keep one copy on his or
her computer and to print out one copy only.
Printing out more than one copy – or distributing it electronically –
is prohibited by international and U.S.A. copyright laws and treaties,
and would subject the purchaser to penalties of up to $100,000 PER
COPY distributed
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Lloyd Richardson FCPAibalance international ltd
PO Box 859
Canning Bridge WA 6152
Australia
www.ibi.net.au
Printed under non-exclusive reprint and distribution license
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Introduction
Welcome… and thank you for purchasing this book. It’s my pleasure to invite you to step across the threshold into a whole newuniverse, a place where a self-replenishing ‘fountain’ of prospects andsatisfied consumers creates a never-ending stream of income for your
business.
This isn’t a dream world. It’s not “a place called Hope” where youwish for success, but don’t do anything to achieve it. No, this is thereal world, where real effort (in smart business marketing) pays off inaccelerated income and mounting profits.
So welcome…to a place I call the action-packed world of WinningUnlimited Customers. And while you may not realize it, you’realready a resident.
When did that happen?
It didn’t happen when you read the sales message for this book.
Many people read the same message and understood the value of myoffer, but they didn’t act. But you did. You placed your order. Butyou didn’t stop there.
You became a real “action hero” the minute you started reading.And that’s why I want to congratulate you. Unlike 90% of peoplewho try to grow a business, you clearly understand that
Without action there can be no results
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Three Proven Ways to Grow YourBusiness
The secret to success lies in identifying and mastering thetechniques that will work for your business. There are manystrategies you can use and some will be more valuable to you thanothers. It’s important to know the difference between ‘good ideas’
and ‘good ideas that I can put into practice that are right for my product/service and my prospects.’
In general, all marketing efforts fall into three general categories
Increasing the number of customers or clients
Increasing the value of the average transaction
Increasing the frequency of re-purchases
Your goal ─ your mission, should you decide to accept it ─ is todesign systems and programs that surround these three categories ofgrowth strategies. Here are just a few ways to improve each of thesekey growth areas:
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How To Attract More Customers
Select a niche market that you can easily reach and
dominate
Develop an education-based marketing program thatmotivates prospects to contact you to learn more abouthow you can help them
Establish a robust referral program that can open newchannels of growth
Give your customers the opportunity to “go on record”
by giving you testimonials about your great productand/or service
How To Increase The Value of An Average Transaction
Up-sell your customers to add on to their purchase
Suggest accessories, add-on items, and other services thatcomplement your customer’s purchase
Create value-added packages that would cost more if purchased separately
How To Increase the Frequency of Re-purchases
Maintain ongoing communications to present compellingoffers that can’t be turned down
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Follow up with customers to see how they’re enjoying
the benefits of their purchase and to suggest products orservices that would increase their satisfaction
Track your customers’ usage and buying patterns to
suggest purchases right before they actually need them(This will effectively keep your competition out of the
picture entirely)
Deliver uncommon customer service by going the extramile
Perform stealth surveys with your customers from time-
to-time to gauge their level of satisfaction
Lloyd’s Nugget
Most business owners focus too much of their time and money ongetting new customers when what they should do is spend moretime on maximizing the transaction value and laying the
groundwork for a repeat purchase. It’s easier and less expensive tosell to an existing customer than a first-time buyer. You don’t haveto build trust with an existing customer, so there are fewerobstacles that need to be overcome before the deal is sealed.
The Power of Optimization
Most business owners that I meet want to grow their businesses, but they struggle because they have no idea of how to go about it. Theconcept of business optimization is the key to more growth ─ explosive growth ─ without spending more money than you spendnow on your sales and marketing.
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Once your business optimization is turned into a system, you'llalso be spending less time for a higher reward. Here’s how it works.
Let’s say that right now you bring in 500 new customers per yearand each of those customers spends $100 and you know this becauseyou track that they each buy from you once more per year.
New Customers x Average Sale x Repurchase Frequency = Total Sales500 $100 1 $50,000
Now what would happen if we didn’t focus only on getting newcustomers, but also focus on increasing the average sale per customerand increased their number of repurchases by 10%?
Watch how our “new math” turns 10% into 33.1%:
New Customers x Average Sale x Re-purchase Frequency = Total Sales550 (+10%) $110 (+10%) 1.1 (+10%) $66,550
If you increase results in each of the focus areas by as little as10%, your profits will rise dramatically in response.
Do you see the power in this? If you don't, I suggest you polish
your glasses and read this over again.
But wait! What would happen if you raised the bar a little bitmore?
New Customers x Average Sale x Repurchase Frequency = Total Sales650 (+30%) $125 (+25%) 2 (+50%) $162,500
That’s a 225% increase in your sales income and you only didsmall increases in three areas to achieve it.
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What Is The Lifetime Value of Your Customer?
Average marketers define the ‘value’ of a customer by the amountof money he/she spends on a purchase. But a smart marketer takes along-range view to consider the “lifetime value” of a customer.
All of your customers also have a value that goes beyond theirimmediate purchases. They know other people and those contacts areworth more business. They will tell others about your products andservices, word-of-mouth advertising. They will give you referrals.They may have other business contacts that you can do joint ventures
with.
The lifetime value of a customer is how much a customer will beworth to you as long as you’re in business. This knowledge helps youdetermine how much to ‘invest’ in his/her care and feeding so thatyou’ll achieve a positive return on your investment.
Lloyd’s Nugget
If you don’t know how much a customer is worth, how do youknow how much you should spend to get one?
To determine the lifetime value of a customer, you need to knowand track…
How much a customer spends
How often per year he/she makes a purchase
How many years he/she will remain a customer
Knowing the lifetime value of a customer will also tell you howmuch money you can spend on your sales and marketing to get theright return on investment (ROI) for your marketing dollar such as:
How much should you pay for advertising?
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How much can you afford to pay a salesperson?
How much is an appropriate referral fee?
How much should you pay in a joint venture situation?
Don’t Fly Without a Net Worth
There is one other consideration regarding the lifetime value of acustomer. After everything is said and done, when the selling isfinally over, how much did each customer bring to the bottom line?In other words, taking into account your expenses versus yourincome, you need to figure out each customer’s net worth to your
business.
Every customer will have a net worth, but it may not be achievedon the first sale. This big picture approach to sales may surprise you,
but you must understand that it isn’t necessary to make money on
every transaction to end up in the black.
You can lose money in the short term, but make it up in the longterm.
Profitable Principles You Must Understand
There are golden nuggets of information which should beconstantly watched and monitored by all business owners:
The conversion rate (closing rate) of prospects tocustomers/clients
The average sale amount (or average initial purchaseamount)
A closing rate is found in every type of business, regardless ofindustry. This statistic is important because profitability occurs whenyou increase conversions. So it’s critical to ramp up your conversionrates without investing more money.
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Let me share an example of how it can be done.
An alternative healthcare provider in the weight-loss businessadvertised in the Yellow Pages. The doctor did not know how manyinquiries were coming in based on the ad, so he asked his receptionistto keep track. He learned he was getting a lot of calls…but not a lotof clients. His ad was successful in generating interest, but notmaking the sale.
Based on this knowledge, the doctor decided to train hisreceptionist on exactly what to say on the phone. Instead of simplyanswering the call, the receptionist made a mini phone sales
presentation. She captured contact information so that follow-upmessages could be sent by mail and email. She also made follow-upcalls to set an appointment for the prospect to come in for anevaluation. These actions:
Increased sales by 25%
without incurring additional expenses
Average Sale Amount
The average sale is the amount of money a visitor spends on atypical purchase from you. To increase your profits, you need toincrease your average sale amount. You do this by encouraging
your customers to spend more money each time they shop.
Lloyd’s Nugget
All businesses are engaged with customers at a certain level of
revenue. Ongoing, consistent efforts must be employed which helpcustomers do business with you at a higher level of revenue.
Most businesses limit their contact with customers to the area ofservice or products in which the customer originally expressed
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interest. You have already established a relationship, so why notutilize that relationship to its fullest?
This is done by making certain that the customer is aware of alladditional products or services that you have available. This issometimes referred to as merchandising. There are a huge number ofmerchandising techniques. Let’s look at some of the more commonones:
Cross-Sells ─ related products or services to a visitorwhen they are viewing or buying a product or servicefrom your website. (If your visitor is buying a hammer,then you might want to display a number of different
types of nails)
Up-Sells ─ a more advanced or expensive product than theone that is being considered. (If your prospect is buyingan iPod Shuffle, you might try and upsell by displaying afull iPod or iPhone)
Volume Discounts ─ offer a cheaper price or a biggerdiscount as an incentive for a bigger order. You are
actively providing an incentive for your visitors to buy in bulk and thus spend more money ‘up front’
New In Stock ─ new items that have “just arrived.” Thiscan be great for “early adopters” who love to try outanything that’s new and always be on the leading edge
Package Deals – combine a number of items into a package deal. Offer a special discount if the customer buys certain items as a ‘package’. (Think of fast foodmeals where they package up a burger, fries and acoke)
Free Shipping With All Orders Over A Specified
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Dollar Amount ─ encourages your prospects to top up their orders to ensure that they get the free shipping
Free Gift With All Orders Over A Specified DollarAmount – like free shipping, it encourages prospects tospend more to get something free
Lloyd’s Nugget
Be sure to use a gift that has a high-perceived value, but costs youvery little.
TOOL: Bui lding Loyalty In 8 Magic Moments
There are eight distinct occasions…eight Magic Moments…thatyou can enlist in your campaign to create a loyal, repeat customer. Ifyou pay close attention when you're doing business and watch out forthese eight moments, and then go the extra mile at the right time...
Bingo! You’ve changed a one-time sale into a lifetime customer.
MAGIC MOMENT #1
Pre-planned moments when you thank a steady, solid customerwho never complains, but who always brings her business back toyou. These non-squeaky wheels are the most neglected customers, butthe most important to your business. Plan to do something special forthese customers every quarter or six months. You'd be amazed at theresults of a plain vanilla thank-you letter as simple as this:
“Dear Steady Eddy:
All too often, we do business with nice people like you, and
then go on without giving it a second thought, as if we'd never
done business together. We would like to take a few minutes out
of a busy day to personally thank you for your business.
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Thanks for trusting us with your business. We know you have
a choice and we're glad you continue to choose us.
MAGIC MOMENT #2
The moment your customer complains. Believe it or not (andyou'd better!), your customer has done you a great favor bycomplaining. It’s not every day that a customer will take the time tolet you know what they think. If they're dissatisfied, they'll usually
just disappear into the night, never to be heard from again…until theyshow up at your competitor's doorstep!
Complaining customers give you a chance to regain their loyaltyand goodwill by "working" your customer service processes. Theyalso help you to spot and fix problem areas in your service system.
Technical Assistance Research Programs Institute conducted astudy that found that on average, 96% of unhappy customers nevercomplain. The truth is that most customers don’t like to complain –especially about little things. For every complaint heard, the averagecompany has 26 other customers with the same problem.
An elephant never forgets and neither does a disgruntledconsumer. The TARP study found that the average happy customerwill talk about a pleasant experience for about 18 months. On theother hand, the average unhappy customer will remember the incidentfor 23 years.
How many prospects could they tell over that length of time?Don't you want to know immediately that you've got a problem with acustomer? And don't you want to solve it n-o-w?
Fix your complaining customer’s problem, and then let him/herknow that you appreciate them as much, or even more, than othercustomers because of their complaint. Let them know that youappreciate that they cared enough about you to take the time to voicetheir opinion and give you the opportunity to correct what's wrong.
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When a customer complains, think of it as a “jackpot.” Look at the
situation as an opportunity to make a customer for life. The most loyalcustomers are the ones that have been through the trenches with youand have emerged with satisfaction and delight with how you handledtheir unique situation.
This is critical. That’s why I’ve created an 11-step checklist forhandling customer complaints and getting maximum value from thetime spent.
Use it, teach it, share it, measure it, post it,
talk about it, honor it, and live it
TOOL: 11 Steps To Making The Best of
Customer Complaints
Every time you receive a customer complaint, use this checklist.Include it as part of your employees’ evaluation. Use it in youremployee training sessions. Role-play using the checklist. Dowhatever it takes to get these key elements into you and youremployees’ daily habits.
1. Say “I’m Sorry”... and mean it!
2. Listen without becoming defensive or argumentative.
3. Be empathetic and demonstrate an understanding of theirPerspective.
4. Take responsibility and don't make excuses.
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5. Listen actively and ask questions.
6. Tell them specifically how you’re going to fix their problem.
7. Tell them specifically when you’ll get back to them.
8. Thank them for taking the time to bring a problem toyour attention.
9. Make good on your promise and resolve the problem.
10. Follow-up to say the problem is resolved and to ensuresatisfaction.
11. Do something extra nice for them (i.e., a future discount.)
MAGIC MOMENT #3
The moment one of your new customers comes back to place a
second order. However big or small the order, a repeat order means acustomer chose you to do business with again.
Do something to thank them for their vote of confidence.
MAGIC MOMENT #4
The moment a customer has thanked you. When someone goesout of their way to express their gratitude for something you’ve done,you have a tremendous opportunity to deepen and strengthen your
bond by responding in kind. Send them a coupon for their next visit ora free movie pass.
Something that says, "I appreciate you, too."
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MAGIC MOMENT #5
The moment one of your customers has been through a hard time because of a foul-up on your, or even their, part.
Ancient saying: Man plans, God laughs.
(The ancients must have been business people.)
Much as we wish they didn't, sometimes things go wrong. Whenyou're at fault and your customer hangs in there with you, you have a
great opportunity to go above and beyond the call of duty to expressyour regrets and demonstrate your commitment to their satisfaction.
When you fix the problem, take it one step further and dosomething extra, free of charge.
MAGIC MOMENT #6
The moment a customer needs a favor from you. There are
often times that your customer wants you, needs you to go the extramile for them, or they find themselves in a jam and they need yourhelp.
Tell them that honoring their request is against your policy andyou don’t usually do these types of things, but for them you will makean exception.
MAGIC MOMENT #7
The moment you see your customer in public. Have you everwalked right by one of your customers without saying hello? Thisshould never happen!
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Can't remember your customer's name? Give yours, instead! “Hi,
my name is Ms. Market; I’m the person who tripled your businessthree years ago. How’s it going?”
MAGIC MOMENT #8
The moment your customer brings in a referral. This isGOLDEN TIME in Magic Moment-land! You have just acquired anew customer at no cost to you. You have just been given the lifetimevalue of a new customer for free.
Make sure your customers are aware of your gratitude and howmuch their endorsements mean to you. Send them a dinner for two totheir favorite restaurant.
Lloyd’s Nugget
Don’t let this marketing concept eat you out of house and home!You don’t want to spend more on the reward than the profit you’llgenerate from a customer’s business. A pre-loaded debit card for a
local premium coffee bar may be a more appropriate ‘relative’expense.