Do you know how to grow your business online? Many marketers focus on attracting new customers as if it is the only way to grow their business. They don’t realize that it is actually the most expensive and time-consuming way to grow their business. Focusing on your existing customers as you grow your business, finding different ways to get them to buy more and more often, is the fastest and most cost-effective way to grow your online business and increase revenue.
With this in mind, I’d like to draw your attention to 3 proven ways to grow your online business, which are attracting new customers, upselling to existing customers and selling more often to existing customers. Do you do it too? Well, then let’s focus on one of these methods to illustrate how important it is that you learn how to grow your online business using these three methods.
1. Attract new customers.
As we have already pointed out, attracting new customers to build your online business is the most difficult and time-consuming method. Convincing new customers to buy from you requires a lot of effort in terms of marketing and advertising.
People don’t easily buy from strangers. You really need time to convince them. You need to build authority and credibility online, using proven methods, to present yourself as an expert in your field and outperform your competitors. This takes time and is one of the reasons new marketers struggle to break through. Focusing on attracting new customers without a clear plan to retain old ones is another reason why some marketers fail to grow their online business.
While attracting new customers is essential to growing your online business, you must also focus on retaining them so you don’t waste the resources invested in attracting new customers. Learn techniques to attract and retain new customers to grow your online business.
2. Sell more to existing customers.
It is easier to grow your online business with existing customers than with new ones. This is because they already know you and your products. Since they have already used your products, it is easy to induce them to buy even if you introduce new products.
It is now your responsibility to create different opportunities for them to buy more and more from you. You can do this by introducing various promotional programs that will convince them to make a purchase once they realize the benefits of buying from you again.
For example, if you have 4 customers who buy products for the equivalent of 50 dollars a month each, you earn 2,400 dollars with them in one year. If, in the same year, you manage to attract 4 other customers who can also spend an average of 50 dollars per month, you will earn 4,800 dollars with 8 customers (4 old and 4 new). But if you gain 4 new customers and get 4 old customers to spend 50% more, your annual income will increase from $4,800 to $6,000. Can you imagine how fast you can grow your business by focusing your energy on old and new customers?
In the example above, you increased your old customers’ purchases by 50%, and that’s called transaction value. Always pay attention to your old customers by finding ways to increase their transactional value to grow your online business. Will you do it?
3. Sell to your existing customers more often.
The growth of your online business depends largely on how often each of your customers buys from you. This is very important. You need to figure out how to get them to come back and buy from you.
Let me illustrate this with the same example as above. If each of the 4 past customers you have spent $50 a month, you would earn $2,400 in 12 months. But if you worked to encourage them to increase the value of their business by 50%, each customer would spend $75 per month and you would earn $3,600 per year. If these 4 customers increase their purchases from you up to three times a year through your promotional efforts, they would spend a total of $10,800. Can you imagine your income increasing from $6,000 to $10,800 if you focus on the frequency of each customer’s purchase?
In the example above, the estimated revenue increased from $6,000 to $10,800 because each of the 4 customers bought from you again. You didn’t gain any new customers, but your sales increased. This is called PURCHASE PERFORMANCE. Grow your online business by focusing on the number of times each customer buys from you.
Ask yourself the following questions as you develop your business and make sure you find the answers.
i. How many customers do I have now?
ii. How much do they spend on average per transaction?
iii. How many times do they spend this money in a month or year?
iv. What happens if I increase the value of their transactions from 5% to 50% or more?
v. What can I do to increase the value of your transactions?
vi. What can I do to increase the frequency of your purchases?
Once you have the answers to the above questions, there is nothing stopping you from building a successful business. You’ll know how to grow my online business. Will it do any good?