Five Levers to Grow Your Business
While there are countless ways to grow your business, they all move they same five levers.
One of the best ways to spark creativity is to go through each of the levers and identify 10 ways to increase revenue using that strategy. Of course, you’ll have some bad ideas, but there are sure to be a few big winners in there too.
Here are the levers, you can:
- Increase the number of leads
Growing the number of leads is one of the clearest, easiest ways to grow your business. The more people in the door, the more you’re going to sell.
You can grow this lever in tons of ways. You can advertise, create opportunities for word of mouth, do super targeted outreach, get media coverage, write on other websites, use SEO, etc. etc. etc. The possibilities are endless.
- Increase the quality of leads
Another way to make more sales is to not only increase the number of people walking through the door, but also to make them higher quality. Quality meaning that they are more likely to be your ideal customer.
You can increase this by looking at which lead sources convert really well for you and do more of that. You can also change your channel strategies to better target your ideal audience. Perhaps shifting advertising to focus on people with the desired income range… or focus PR outreach to media outlets that have very clear connections with your products.
- Increase the rate of purchase (conversion rate)
Now, once you get people in the door, it’s key to actually get them to pull our their wallet.
There are literally countless ways to do this. You can improve the customer experience, offer amazing service, guarantee the lowest prices, discount, build relationships with your leads… the list goes on.
But the best way to increase conversion rate is always the same. Have the exact product that your market wants.
- Increase the average order value
So now that your leads have purchased, it’s time to help them buy more.
Well considered upsells are a fantastic way to increase AOV. (Would you like to supersize that? Would you like leather seats in your car? Would you like one-on-one coaching with your course?) Upsells can be no-brainer purchases that improve the customer experience and increase average order value.
The most comically overlooked way to increase AOV? Sell more expensive products. You can price test your current stuff, you can focus on selling your more expensive products or you expand to new, more expensive products.
- Increase the frequency of purchase
Finally, now that we’ve gotten more leads and more people to buy more, we can focus on increasing order frequency.
Amazon’s auto-re-purchase is a genius example of automating frequent purchase behaviors. Subscription products, like magazines or software, follow the same model.
Other models include updating your product frequently, to trigger repurchases (like an iPhone or car), deepening their needs in your market, widening the market to include adjacent goods & services and planned convalescence.
The best way? Sell great stuff and give them personalized opportunities for buy again.
Whew, after all of that, you should be bursting with ways that you can grow your business.
There are short term plays — send out an email about product X. And, there are long-term ideas — design a new, higher price point product.
My advice: find ways to optimize the micro while placing a few big strategic bets on the macro.