Wednesday, June 2, 2010

1 of Only 3 Ways to Grow Your Business: Part 1

Your business, no matter what it sells, can grow in just three ways.

Here they are:

1. Get more customers
2. Get customers to spend more
3. Get customers to buy more often

That's it.

All marketing is a variation on one of these three themes, which I learned from marketing legend Jay Abraham, among others.

Once you've grasped this simple idea, your marketing will become more focused, more organized and more powerful.

And when you bring God into the equation, by praying for guidance and meditating on the answers you receive, well, the results can be spectacular.

Let's look at the first concept in detail: Get more customers.

What's the first thing small business owners say when they want more sales? "I need more customers!" I'm sure you've said this yourself. I know I have, many times. But this is actually the most expensive and time-consuming way to grow your business.


Think about all the costs involved in running advertisements online, on radio, in print, etc. Think about how long it takes you to qualify a prospect either in person, on the phone or by mail. Think about the entire sales process, the salaries and commissions you pay your staff, the time it takes, the overhead, etc.

It's been said that it costs about five times more to get a sale from a new customer than to get a sale from an existing customer. But I've heard of cases in which companies paid up to 60 times more to sell to a first-time buyer as opposed to making a sale to an existing customer.

Getting more customers this way can cost you a fortune.

In the end, you may be lucky to break even on your first sale. So why on earth do most of us want to do the same thing over and over -- and go hunting for new customers? Blame it on instinct. We equate business success with long lines of buyers beating a path to our door.

Don't get me wrong. Your business needs new customers. Through normal attrition, it's normal to lose up to 10% or 20% of your customers every year. Some may move to another city, or no longer have a need for your product. Others will become parents or spouses, or go through other life changes that cause them to stop buying from you. Still others may become unhappy and defect to your competitors.

Whatever the reason, you shouldn't abandon your efforts to win new customers. Through such techniques as better advertising, marketing alliances, word of mouth, publicity, seminars and community involvement, there are plenty of ways to get new bodies in the door.

How can God help you in this?

You'll find out in tomorrow's post.

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