Top 4 Ways to Double Any Business
In today’s competitive business landscape, doubling the growth of your business requires strategic planning and effective implementation. While there are various factors that contribute to business growth, there are four key areas that can significantly impact your business’s success and bottom line. By optimizing these aspects of your business, you can unlock new opportunities and achieve remarkable growth.
1. Customer Acquisition Cost
Understanding Customer Acquisition Cost (CAC)
Customer Acquisition Cost refers to the total cost associated with acquiring a new customer for your business. It includes expenses related to marketing, advertising, sales efforts, and any other investments made to attract and convert customers. By effectively managing your CAC, you can optimize your marketing strategies and increase your customer base while reducing costs. On Google, we see “free” leads from local seo and paid leads from Google Ads ranging from $20-$450.
Identify Target Audience
To lower your Customer Acquisition Cost, start by identifying your target audience. Understand what digital platforms they spend time on, their preferences, and their pain points. This knowledge will help you tailor your marketing campaigns and messages to resonate with your ideal customers, resulting in higher conversion rates and lower acquisition costs.
Utilize Digital Marketing Channels
In today’s digital age, leveraging online marketing channels is essential for cost-effective customer acquisition. Develop a comprehensive digital marketing strategy that includes search engine optimization (SEO), social media marketing, content marketing, and email marketing.
A Simple Formula for Customer Acquisition Cost
Figure out how many new customers you served last month then divide that by your marketing spend last month.
50 new customers in the database
$5000 spent on marketing
$100 per new customer
This gives you a baseline to start from to decrease your CAC while also making sure your marketing is profitable.
2. Average Transaction Value
Enhancing Average Transaction Value (ATV)
The Average Transaction Value refers to the average amount a customer spends during a single transaction with your business. Increasing the ATV can have a significant impact on your overall revenue and profitability.
Upselling and Cross-Selling
One effective way to increase the average transaction value is through upselling and cross-selling techniques. Train your sales team to identify opportunities to recommend additional products or services that complement the customer’s initial purchase. This approach not only increases the customer’s overall spending but also enhances their overall experience with your business.
Bundle Offers and Incentives
Create bundled offers and incentives that encourage customers to spend more. Package related products or services together at a slightly discounted price to incentivize customers to increase their spending. This strategy increases the average transaction value and boosts customer satisfaction and loyalty.
A Simple Formula for Average Transaction Value
Look at how many jobs you completed last month and then divide that by your total revenue last month. If you have different business lines, you can get more granular with your data too.
300 jobs complete
$150k completed rev
$500 per job
This give you a starting point to increase your average ticket and incentivize your team to reach your goal. For example, if you want to hit $200k, you could do more jobs and/or increase your average ticket to $667.
3. Job Booking Rate from Call
Optimizing Job Booking Rate
The job booking rate from calls refers to the percentage of calls received by your business that result in successful bookings. Enhancing this rate is crucial for maximizing the conversion of inquiries into actual jobs.
Professional Phone Etiquette
Train your customer service representatives to have professional phone etiquette. They should be knowledgeable, empathetic, and persuasive while addressing customer inquiries. By providing exceptional customer service over the phone, you can increase the likelihood of securing bookings and turning potential customers into loyal clients.
Streamlined Booking Process
Simplify the booking process to make it easy and convenient for customers to schedule services. Use online booking systems or mobile apps that allow customers to book appointments effortlessly. A streamlined and user-friendly booking process can significantly improve the job booking rate from calls.
A Simple Formula for Job Booking Rate
If you use a phone service that tells you how many calls you received, you can try and back in to this number. To make it even easier though, you can have your CSR use a piece of paper every day to track “lead calls” and then if they book the call. At the end of the day the can email you a quick summary.
When a lead call comes in place a / and if you book the call place another \ making an X. This will give you a quick glance at booking rate each day. Average booking rates are 42%.
4. Close Rate of Technicians Face to Face
Improving Close Rate of Technicians Face to Face
The close rate of technicians face to face refers to the percentage of leads that technicians successfully convert into customers during in-person interactions. Enhancing this rate requires effective communication, professionalism, and trust-building.
Training and Skill Development
Invest in training and skill development programs for your technicians. Ensure they possess strong communication skills, product knowledge, and the ability to address customer concerns effectively. By equipping your technicians with the right skills, you can enhance their close rate and improve customer satisfaction.
Building Trust and Relationships
Encourage your technicians to build trust and establish rapport with customers during face-to-face interactions. By demonstrating professionalism, expertise, and a genuine interest in solving the customer’s problems, your technicians can significantly increase the close rate and generate repeat business through positive word-of-mouth.
A Simple Formula for Close Rate
Identify how many sales calls you went on last month and then divide it by how many “closes” you had. This will give you a benchmark for your company closing percentage.
Digital Marketing Company to Help You Grow Your Business
Doubling the growth of any business requires a comprehensive approach encompassing various key areas. By focusing on customer acquisition cost, average transaction value, job booking rate from calls, and the close rate of technicians face-to-face, you can optimize your business operations and unlock new opportunities for growth. As a digital marketing consulting company, we monitor these 4 core areas for our customers and help come up with strategies to improve these areas for our clients. Schedule a call here to discuss your business and best practices other businesses are using to double their businesses.