In the previous 2 posts, we have looked at two different strategies to Grow Your Business. If you would like to read these first, please click one of the links below:

Strategy 1 - Increase The Number Of The Right Types Of Customers
Strategy 2 - Increase The Transaction Frequency

Today, we’ll take the next step and turn the right types of customers, who are spending more often (Strategies 1 & 2) into customers who are spending more:

Strategy 3: Increase the value of each sale

Of all the strategies, I think this is probably the easiest to grow your business. It is also one that can quickly be tested and measured to see what works and what doesn’t. Every business is different but there are plenty of options to try to increase sales value. And if you can get a few of these going, your business won’t look back.

Here are 4 tactics you can apply to your business today to increase the value of each sale.

1. Upselling

One of the classic examples of how to increase the value of each sale is McDonalds – “Would you like fries with your order?”. This is called upselling, that is you ask the customer if they would like to add another product to their order. The key here is you have to ask.

Adding an incremental dollar value to each sale adds up over time and is a really simple way to grow your business. It is also important to train staff in how to do this in every transaction with customers until it becomes second nature (remember, it takes 21 days for a habit to form).

2. Increase Your Range

Regardless of your business, there is always something extra you can sell people, and if you don’t have anything extra, this is the next way you can add value to each sale – increase your range. It is important here to add products that make sense to your business and that customers are looking for. Is there something that your customers often ask for that you don’t stock? Then start to stock it (if it makes profitable sense too) and sales will increase.

3. Bundle Products

A third tactic for increasing the value of each sales is to bundle products together. If the bundle represents good value, customers often can’t resist and the result is a higher sale value. Some examples you may see regularly are:

- Your local coffee shop offering a ‘Coffee and Cake’ deal
- Buy 1 of Product X (or 2, or 3) and get the 2nd (3rd or 4th) for free (or half price)
- Spend $5 in store and receive an extra 2 cents/litre off your petrol

4. Bulk Purchase Discount

The final and fourth tactic which is really a subtle variation on some of the above is to offer a discount or other incentive for bulk purchasing. This is similar to upselling but instead of just one additional product, you are encouraging customers to buy in bulk. This will greatly increase the sale value, but is not suitable for all businesses and products. Again, the offering must represent enough value to the customer for it to be successful. Some examples include:

- Buy 5 reams of paper instead of 1 and get 10% off.
- Purchase $300 worth of products and get free delivery.

Utilising some or all of these four tactics in your business will lead to an increase in sales and grow your business. Try different options, test and measure to see what works best and be creative.

Until next time (and the final strategy),
Samantha

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Filed under: Marketing — Tags: , , , , — Samantha Lewers @ 11:55 am

Last time we looked at the first strategy to grow your business – increasing the right number of customers.

Now that you know who the right type of customer is, it’s time to look at the next step to grow your business:

Strategy 2: Increase the Transaction Frequency

Recently my hairdresser commented that people are not getting haircuts as frequently as they were 12 months ago. And in fact, 12 months ago they weren’t coming in as frequently as 12 months prior to that. This is a classic case of transaction frequency decreasing, that is, people are buying less often.

For my hairdresser, this means she has to keep working at finding new customers to make up the gap in sales from her existing customers. To acquire the new customers there is also an ongoing marketing cost involved. So not only are sales affected, but costs are as well.

If she could reduce the transaction frequency back to 4-6 weeks like it was 2 years ago, her business would much better positioned. At the moment, many customers are only coming in every 12-16 weeks and while they may spend a bit more at each visit, over 12 months, their average spend is down.

One solution to this is to increase the transaction frequency. Quite simply, if you encourage your customers to buy more often from you, sales will grow and so will your business. But this is not always as easy as it sounds and there are a couple of ways to do this.

1. Customer loyalty program

The first way is to develop a customer loyalty program that rewards customers for spending with you. There are plenty of examples of these in our everyday lives – airline frequent flyer programs, credit card point programs, supermarket loyalty programs. These are not just the domain of large companies and small business can also greatly benefit from loyalty programs.

Some programs in our local community include:

- Buy 10 cups of coffee and get the 10th cup free.
- A beauty salon that gives a free facial after 8 visits.
- The local bakery offers a loaf of free bread after spending more than $5 on 6 visits.
- Pizza shop that gives a choice of several menu items once you have saved and collected 10 vouchers from their pizza box.

These types of programs are inexpensive to setup and business owners can get quite creative in their offers and small business marketing. Once setup, ensure they are promoted and fully supported so that customers are encouraged to return again and again.

2. Remind Customers To Come Back

In my experience dentists are always great at sending reminder notices. Unfortunately, there are not many other businesses who are as efficient at it. It is a simple, yet very effective way of reminding people about your business and building a relationship.

In the case of my hairdresser, she could send people a simple reminder note 6 weeks after their last service as a reminder to book in again soon. There could also be an added offer either a discount or free product for booking by a set time. While not everyone will book in, a large enough percentage will take up the offer. The net effect is the transaction frequency starts to increase and the business grows.

3. Special Offers

Another great way to increase transaction frequency is to give your customers special offers on a consistent basis. This not only encourages them to spend more regularly, but builds loyalty and trust. The offers can be varied and don’t always have to be price based. Try giving away a ‘gift with purchase’ or some other ‘free’ service e.g. gift wrapping (with gift purchase), car wash (with car service).

The special offer can also double as a chance to showcase some other products or services you offer and encourage trial.

Using some of these tips will help to increase the frequency of transactions for your business. Not every one is suitable for all businesses. Be creative and consistent in their application and the results will show as you grow your business.

Next time, we’ll look at how to get the customers to buy more each time they transact.

Until then,
Samantha

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Filed under: Marketing — Tags: , , , , , — Samantha Lewers @ 3:22 pm

Finding new ways to grow your business isn’t always easy. Sometimes we can become a bit stagnant in our thinking and it becomes harder and harder to come up with new initiatives and ideas. In simple terms, there are four key ways you can grow your business and increase profits. Using these four strategies will cut right to the core of your business – customers, sales and profits. Focus on these and your business will have no option but to grow.

Today we’ll look at the the first way to grow your business:

Strategy 1: Increase the number of the right type of customers

To do this, you first need to know who the right type of customer is which requires a little bit of market research. Look closely at your best customers (the ones who spend the most money) and try to isolate common factors among them. On the most basic level you could consider things like age, gender, locality, income level and relationship status. For business to business customers, consider industry, size of business, location etc.

Knowing the basic demographics of your customers is a great start, but it does pay to dig deeper and investigate exactly why they are doing business with you. What problems are you solving for them? What makes them buy from your business and not somewhere else? Obviously, one of the easiest ways to answer these questions is to ask and always be listening to customers. This doesn’t need to be a formal survey or questionnaire. Try phoning your best customers or taking some time with them next time they contact your business and find out why they buy from you. Usually they are more than happy to oblige (and it could double as a chance to grab a testimonial).

Now that you know who your best customers are, ask yourself if they are the right type of customer for your business? It may be that your best customers are not necessarily the right ones. That is, they may be demanding, non profitable or in some other way detract from your business and actually hamper the business plans and objectives.

Consider the example of a small business with a range of health supplements that is stocked in a variety of outlets included major supermarket chains, independent supermarkets, pharmacies and specialty stores. While the major supermarkets are likely to be the best customer, often the demands and costs of doing business with them puts enormous pressure on the business. So, when analysed next to other distribution outlets, they may not be the right type of customer for the business. It may be more profitable, even if there is a sacrifice in revenue, to increase the number of other outlets.

By conducting a thorough analysis of your customer base, you will know what the right type of customer for your business is. From here, refine or develop your marketing plan and promotion mix to attract more of these customers to your business. Look at what has worked to get these customers in the past and what hasn’t. Try to have a number of marketing tools working at any given time and continually test and measure the results so improvements can be made.

Now you are increasing the right type of customers, next time we’ll look at the second strategy to grow your business - turning the right customers into buying ones.

Until next time,
Samantha

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Filed under: Marketing — Tags: , , , , — Samantha Lewers @ 3:22 pm
Personal Productivity
June 4th, 2009

Personal Productivity is all about how we use our time. The better we use that time, the more productive we become. There is nothing worse than getting to the end of the day (or week, or month) with the feeling that you have achieved nothing, or worse, you have no idea where your time went.

Today’s champion tip comes from Andrew May and contains some great tips on how to improve Personal Productivity

Andrew May

Andrew May

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Andrew runs Switched On, a consulting company based in Sydney and London. He is one of Australia’s leading experts on performance and gives keynote presentations around the world and coaches CEOs and senior managers. He also runs PT Plus, a mentoring and coaching business.

What are your top tips for dramatically increasing personal productivity?

The first thing I teach people to do is to work to their natural energy platforms. Then I teach the concepts of chunking time, the half-day lock-out, forced isolation and avoiding the Noddy syndrome.

Chunking - at first thought, multitasking seems a logical response to our compressed and tightly-packed schedules. While doing a couple of tasks at the same time might sometimes feel more productive, multitasking is not nearly as productive as most people think.

Chunking is about doing similar tasks at the same time. While this is a very simple concept, it can make a massive difference to daily output. For example, check and respond to emails at two or three specific times a day only, and block out time to work on proposals and reports. Modify these ideas to fit into your job responsibilities, I’m sure most people have a lot more control over organising their day and their precious time than they think.

The half-day lock-out
- a lot of people who have participated in our corporate programs have picked up the concept of an uninterrupted half-day. This lock-out means turning off the mobile, not checking emails, avoiding constant interruptions and walk-ins, and is best completed when your energy platforms are at their peak. Focus on being present and attentive on the task. This works especially well when you have to write a report, finish a proposal or do some high-end cognitive planning.

Forced isolation - I use this concept when I have a big task to finish. A friend of mine has an amazing holiday house two hours’ south of Sydney in a little place called Gerroa. I regularly shoot down to Gerroa and chunk my time working on finishing an activity (thanks Gary Green - you are a legend!). I find that when I am in the office, interruptions just happen! There is no email access at Gary’s house and I turn off my phone and work in chunks of time. I usually give myself a small energy break every 45 to 60 minutes and a larger energy break, to walk on the beach or swim in the ocean, every few hours. Over two or three days at Gerroa I get more work done than I would working at home or in my office.

If you don’t have the luxury of having a mate like Gary, build forced isolation into your current environment. I used to set up a desk in my garage and lock myself away from all of the noise of my flatmates. Working from home on a normal working day is also a form of forced isolation. Just make sure you don’t settle in and watch the TODAY show and then read the daily papers before turning on Oprah or Dr Phil.

Avoiding Noddy syndrome - I think most of us suffer from Noddy syndrome - always nodding ‘yes’ to please other people. Sometimes it’s hard to say no because you feel like you might be letting someone down, but in the end if you say yes to everyone and everything else in your life the only person you’re really saying no to is yourself.

I like the old saying, ‘Sometimes you need to say no for a great yes down the road’. Be assertive with others and practise saying no to other people’s requests if they are not essential. Whether you are doing so many things for ego, because you don’t want to let people down or because you are pressured into doing them, there comes a time when you must learn to say no.

The Small Business Champions Club website contains even more great tips from Andrew May. Click here to read more.

Try using these techniques right away, and you will start to improve your Personal Productivity.

Until next time
Samantha

Filed under: Champion Tips — Tags: , , — Samantha Lewers @ 3:40 pm

It’s official, you can break the internet. But please, be careful with this information!

Hope you enjoyed this fun video that was shared with me today.

Until next time
Samantha

Filed under: Fun Stuff, Videos — Tags: , — Samantha Lewers @ 5:29 pm
Software As A Service
May 13th, 2009

Software as a service or SaaS, is a a method of software delivery where applications are delivered from a central location, usually over the internet, instead of being installed locally on your computer.

For small business owners there can be a significant impact on costs and flexibility by using Saas. Because there is no upfront licensing fees to pay and it is usually a subscription based service, costs are reduced. Further, being web based, the software can be accessed anywhere allowing a true ‘mobile’ service for small business. Below is a video outlining how SaaS works.

There are many types of software available in SaaS format including accounting, CRM and sales software. If you are interested in gaining the benefits of SaaS, ask your current software provider what options are available and do some research for yourself as well. The benefits may be worth it for your business.

Until next time,
Samantha

Filed under: Business Bits — Tags: , , — Samantha Lewers @ 3:31 pm

In a tribute to Mother’s Day coming up this weekend, today’s champion tip comes from Katherine Edgar.

In 1999, Katherine founded The Synergy Group, an international professional services firm that operates in 23 Asia-Pacific cities. The Group recently extended its reach to two emerging economic powerhouses, India and China.

How has becoming a mother changed the way you see and develop your business?

Before my beautiful baby daughter, Akira, arrived, my partner and I assured ourselves constantly that life would not substantially change once our little bundle of joy had arrived. I mean, how hard could it really be? Oh, how silly we were!

The funny thing is that before becoming pregnant, everyone always said, ‘This business is so much your baby’. It is only now, as a mother, that I realise just how accurate a comment that was, even if my colleagues and friends did not realise it.

In the same way that we raise and nurture a child, I learnt that the good parenting of my business in those early years meant that stepping aside from that 24/7 role to have my child was entirely possible.

Nothing prepares a woman for the impact of her first child. It is a wonderful and humbling experience. Early in my pregnancy, we arranged for me to have a nanny three days a week so that, in part, I would be able to continue the same degree of control over my business (my other baby).

What I have learnt in the first few months of being a mother is how to delegate and outsource. Becoming a mother has forced me to step away and allow the business to grow and flourish without me. My wonderful staff members have had to make key decisions and judgments without my input.

The lesson I have learnt - and it is a wonderful one - is that by laying the foundations for a healthy business I could retain the control and direction from a distance, while still being a devoted mother.

This website contains even more great tips from Katherine Edgar.

Members can click here to read more now.

To all the Mum’s out there who are juggling business, babies, kids and everything else in their busy lives, Happy Mother’s Day.

Enjoy breakfast in bed and treasure not only the little people in your life, but your own Mum (and if you’re lucky enough, Grandmother) as well.

Until next time
Samantha

Filed under: Business Bits, Champion Tips — Tags: , , , — Samantha Lewers @ 11:33 am

Today’s post comes from one of our members, Troy Hinchco. Troy felt compelled to write this letter to the editor “after sitting up most nights hearing the big boys crowing about instability in small business”.

___________________________________________________

Open Letter to the Australian Consumer – at large.

I write this letter as someone whose only regular exposure to Letters to the Editor are those which my wife reads out to me because she thinks they will touch a chord, amuse or infuriate me.

This letter is not a direct reaction to one of those letters, it is instead to ask Australian consumers to consider a small thing when making purchasing decisions in the future.

The Australian consumer – and I know this because I am one – is being given messages of security, assurance and confidence in their purchases of goods and services from some of the various industries biggest heavyweights. Corporations are being caring, sharing, and responsibly warning you of the insecurity of dealing with Australia’s ‘little guys’. Gerry Harvey politely points out the plight of the small operator in retail, as do a myriad of other comparable business celebrity’s offering comment about ‘the security of larger, trusted brands, businesses and services’ as we struggle through this economic pressure point. Normally directly or indirectly in reference to their own business.

The greatest threat that the courting of consumers by large businesses, regardless of industry, is that in times like these when consumers are at their most susceptible to influence from the comforting arms and scripted promises of ‘safer’ corporates, they can do the greatest damage to Australia’s community of small businesses.

A small businesses reason for creation differs slightly from industry to industry, for the most part the emergence of smaller businesses is normally because of their ability to service a portion of the market better, more economically or with slightly more customer-centric differences from that of the larger corporate brethren.

The larger corporates whose creation story may evoke tales of the humble start-up and the emergence from their own challenges and trials does this because it encapsulates the basic elements of the Australian dream – the dream of going out alone, being your own boss, making something for yourself.

But all corporate businesses whether started from a double garage in Sutherlandshire in Sydneys southern suburbs 100 years ago or being created with a Big Bang approach in the 90’s with the heavily funded launch through IPO’s and big hitting investors – all larger businesses detune their customer focus at some point. At some stage in their evolution being driven by striving for absolute customer satisfaction at a transaction by transaction level is replaced by measured acceptable failure levels benchmarked against other ‘comparable’ corporates around the world. Standard and ongoing application of the 80/20 rule optimising returns on investment and the resultant dumming down of their service offer to fringe, niche and ‘non-ideal’ customers gives new businesses who are built around those needs, a reason to exist.

In times like these though the larger businesses make noises about their changed service commitment as they react to tougher times and struggle themselves to achieve key financial objectives. If they do adopt new customer focus, will it stay, is it something that has come about as a short term grab for business they ultimately don’t think ‘suits’ their model for optimised profitability? Probably not.

Is there a place for large the corporate ?
Yes, of course, they are vital to our economy as booming entities of business able to tap into resources unlike anything comparable from the realms of small business collectively or not. They employ large numbers of hardworking Australians, they contract and sub-contract out millions of dollars of business to small businesses and trades people every year. They are, where suits and is congruent to their branding, philanthropic to a fault. We simply need big business and we are better for them.

Do I buy from large corporates? Of course, we shop at Coles or Woolworths for 70% of our grocery and consumable products , we buy petrol from the local Caltex, because it’s accessible and might even be a reasonable price but, we also make a point to buy as much fruit and vegetables from our local Market, meat from a local butcher and bread from a local bakery as we can.

Are we doing this because the produce is a higher quality, the service a million times better and because they know our names? Sometimes yes to all of these – and - sometimes no to all of them as well.

We do this because we know that when we compare a local, national and global market with a mix of large corporate entities and smaller Mum and Dad businesses we as consumers and members of a greater community are given the better range of options in all areas of goods and service.

If you are buying a product, a service or even advice – take the time to compare some of the smaller operators in that field – quite often they may be cheaper, faster, more open to offering a slightly customised product based directly around your needs - but - greater still there is a chance that you will be dealing with someone who will pay themselves last as they strive to fulfil a service that you will be satisfied with, a service that you might talk to others about and may ultimately lead to growth in business for them through word of mouth. They won’t be investing in broad brush advertising on the backside of a yellow bus just to satisfy a ‘brand recall’ matrix some guru from America wrote about years ago. Their money and time and dreams are fully committed to their business and their own fulfillment of the Australian dream – not to retire at 38, drink French champagne and eat Russian caviar – but to be their own boss, to prove themselves to themselves as capable and contribute to the countries emergence from the global economic struggle.

On behalf of Australian small business owners, employees and suppliers I implore you not to accept the corporate route to quality product and service as your default, as this would make the media and high level corporate crowing about instability in small business a self foreseeing prophecy. Instead allow us at least the chance to stack up and compete for your business. All we ask is the opportunity to be considered.

Thank you.
Troy Hinchco
Very Small Business Owner

(TIAG Australia Pty Ltd, Select Home Products)

Filed under: Business Bits — Tags: , , — Samantha Lewers @ 3:33 pm

Congratulations if you’ve just launched a new small business. No doubt it took a great deal of work to conceive the idea and to get the business ready for prime time. Even though you might be convinced this is the best idea ever dreamed of, it is going absolutely nowhere if people do not know it exists.

Marketing is the next critical step for your new small business and initially, it can be very time consuming. It is important to plan carefully to ensure your marketing works hard and brings the desired results.

The traditional methods of advertising don’t work for all new small business and can be very costly. An advertisement in the local newspaper can cost anywhere from $50-500 (or more) depending on the size, scale and frequency with which the ad runs. Similarly, to make an impact in the Yellow Pages, it may cost hundreds, even thousands.

Most traditional marketing methods are only as effective as the people who notice the ad whether it be print, television or radio. As a new small business with a small budget, it is likely your message will go largely unnoticed in these mediums and the cost versus the return is not warranted.

Outside of this, there are many ways to advertise your business and a lot of them depend on having an online presence, particularly a website. It is critical in this age of information technology to have a website that will promote your offer to prospective customers. Whether you are selling a product, service or information, a well designed website is invaluable to your business.

Once you have an operational website, you can use the power of the Internet to drive visitors to it. Some ideas for driving traffic are to create a blog about the industry your business is in, join a forum, create a press release, upload a demonstration video to sites such as YouTube, participate in social networking (Facebook, Twitter) and to generate keyword-rich content for search engine optimization. And the great thing is, a lot of these tools don’t cost money, just your time.

All these tools not only serve your customers by providing great value for them, they help your website get noticed by search engines such as Google. The more you get noticed by the search engines, the higher you site will appear in users search results. And the best part about this is that the leads to your business are free because you aren’t paying for an advertisement to get these people to notice your business.

Marketing your new small business is the next step after launch. While it can entail some work, a good plan and careful consideration of the different methods and costs involved will ensure your money works for you. So take the time to plan your marketing and the leads, sales and growth will follow.

Until next time
Samantha

Filed under: Business Bits, Marketing — Tags: , , , — Samantha Lewers @ 4:00 pm
Happy Easter
April 9th, 2009

It’s that chocolate overload time of the year again…Easter. Here’s a funny clip featuring not just one, but 12 easter eggs who risk their lives to wish you a Happy Easter. Will they survive boiling, colouring and that fake plastic grass?

Wishing you all a Happy Easter.

Samantha

Filed under: Fun Stuff, Videos — Tags: , , — Samantha Lewers @ 9:48 am