There are only two functions of a business –
innovation and marketing. All else are just costs.
Peter Drucker
Management Guru
How many ways are there to increase your business?
The answers to this question usually range from one - get more customers - to many - as people think about all of the ways of promoting their business.
Both answers are right, but legendary marketing guru Jay Abraham simplifies the keys to increasing business revenues by focusing on the three most effective ways:
1. Acquire new clients
2. Increasing the size of the transaction
3. Increase the frequency of each client’s purchase
If you work on all three ways to increase your business simultaneously, and all you did was improve each of the three ways by a mere 10%, it brings the power of geometry to bear – and you could increase your revenue and net income dramatically.
Here’s a simple exercise to demonstrate the power of exponential growth:
Let’s say you have 1,000 active clients, an average order of $100 for each time they visited, your customers purchase two times a year.
Your current annual revenues would be $200,000.
Step 1: Increase your customers by 10%, from 1,000 to 1,100
Step 2: Increase the transaction value by 10%. From $100 to $110
Step 3: Increase the visit frequency by 10%, from 2 visits to 2.2 visits
What’s the result?
Your annual revenues increase by 33% to $266,200! (1,100 x $110 x 2.2)
Just a small improvement in the three key areas for increasing revenues creates a massive impact!
What are you waiting for?
