Doubling any of these four growth levers will double your sales
Here is the formula for doubling sales…
Leads x Customers x Margin x Purchase Frequency = Growth Potential
Doubling any of the variables above will double your sales. Double them all and you will 16X your business. Can you double one of them? Two of them? Even 3 of them? Absolutely.
There are 4 Growth Levers you have available to grow your business…
•Increase the number of leads
•Increase the number of customers
•Increase the margin
•Increase the frequency of purchase.
How to Double the Number of Leads
You either need…
•A Lead Magnet
•More Lead Magnets
•Better Lead Magnets.
A Lead Magnet is simply an irresistible bribe offering a specific chunk of value to a prospect in exchange for their contact information. If the reader clicks on the “Download Now” button, he/she will be asked for an email address to receive the content.
The key word in the above definition is SPECIFIC. In nearly every case (assuming you are getting traffic to your Lead Magnet), the reason a Lead Magnet is not performing well is because it doesn’t solve a specific problem. Our testing shows that a Lead Magnet that solves a specific problem can convert over 60% of the traffic to a Lead Magnet offer into a lead.
If you want to double your leads — start with your Lead Magnet. Start with SPECIFICITY.
How to Double the Number of Customers
This is about doubling the number of customers you are acquiring. It’s about acquiring BUYERS. To do that, we use something called a Tripwire Offer.
Digital Marketer offers a book for $9.95. It won’t get rich selling $9.95 books. They are simply acquiring BUYERS. Notice the price point on this offer – $9.95 for a book. We’re not exactly asking for a blood oath here—these are high-value, low barrier-to-entry offers that are designed to acquire customers.
If you want to double your number of customers—create a solid Tripwire offer.
But don’t expect that offer to make you more profitable. For that you’ll need to work on your margin…
How to Double Your Margin
Take VistaPrint. VistaPrint has more than just business cards to sell. VistaPrint has a number of ways they can increase the value of the Trip Wire offer of $9.99 for cards.
First, I can add a back side to my business cards for as little as $2.99. From here I can…
•Add to my quantity (Up to $139.99)
•Upgrade to a “brilliant finish” (Additional $29.24)
•Get better paper stock (Additional $11.24)
•Buy one of those fancy business card holders (Up to $8.99).
And I can buy pens, car door magnets, letterhead, hats, business card magnets, mousepads and t-shirts. Every offer is relevant. Every offer is consistent with my original intent to get promotional materials for my business. Every offer is intended to increase margin.
As for Digital Marketer, we follow the purchase of our $9.95 book about email marketing with a content series designed to sell our $1,997 flagship email marketing training called The Machine. Do you think making $1,997 sales to customers that originally purchased a $9.95 offer increases our profit margin? You bet it does.
And the additional offers made are where the real money is made. These upsells, cross sells, bundles, etc. are what makes the cost of customer acquisition worth it.
Looking to double your margin? Ask this simple question: “What else can I sell to the customers I am acquiring?”.
How to Double the Frequency of Purchase
What if you could get customers to buy twice as often? Sales would double. To do that, you need constant strategic communication. We call it The Return Path.
The fact that most sales don’t occur on the first visit, so without follow up in place — you’re leaving an enormous amount of sales on the table.=
These are all forms of The Return Path…
•Exit Offers – A pop up offer that appears when a prospect attempts to exit a page.
•Ad Retargeting – Digital ads that show to prospects based on their prior behaviour. (Translation: Those ads that follow you around the web after your visit a web page)
•Automated Email Follow-Up – A strategic email marketing plan that brings leads and buyers back to offers and content again and again. This email follow-up is the most effective way to double purchase frequency.
Every email you send should have one of five purposes…
•Indoctrinate – Teach them who you are
•Engage – Get them to buy
•Ascend – Get them to buy more
•Segment – Learn what they want to buy next
•Re-engage/Win Back – Reactivate disinterested subscribers.
Are you seeing the power of these Growth Levers?
This blog is based on a post by Digital Marketer.
Patterson Digital Marketing can help you embed these growth levers in your business.
If you want to double your sales and boost your profit, CALL US on (09) 449 1005 or (027) 489 5009 or email chris@pattersondigitalmarketing.com and we’ll get you on the road to growth.
Chris Kirkham