Only Three Ways To Increase Sales
The Golden Rule of Sales Growth: Acquiring New Customers, Increasing Purchase Frequency, and Upscaling Average Sales
As entrepreneurs and business leaders, the constant strive for growth engenders the perennial quest to increase sales. Essentially, business sales can be amplified in three ways. The golden rule: acquiring new customers, enhancing the purchase frequency of existing customers, and raising the average sale. In this article, we'll make a case for these three critical strategies and explore how they can work in synergy to drive your business growth.
When we built CodyMobile, we built it around this golden rule.
1. Acquire More New Customers:
The lifeblood of any business, new customers, are typically the first thought when considering sales growth tactics. Building a broad and loyal customer base ensures long-term engagement, increasing the potential for sustainable revenue.
To achieve this, focus on your brand messaging, enhancing its visibility and aligning it with the desires of your target audience. Leveraging digital platforms such as social media, content marketing, and SEO can contribute significantly to brand building and customer acquisition efforts. Offline strategies, like networking events, trade shows, and direct mail marketing, can also complement your online initiatives. Carefully crafted partnerships, affiliate programs, and referral incentives can additionally play a role in customer acquisition.
2. Increasing How Often Existing Customers Buy:
The second pillar of sales growth is increasing the frequency at which your customers buy from you. A loyal customer base is a gold mine. The probability of selling to an existing customer is 60-70% compared to a 5-20% probability when targeting a new prospect.
Loyalty and reward programs can play a significant role here, offering exclusive deals, discounts, or benefits to repeat customers. Regular communication through email newsletters and personalized recommendations can keep your brand at the top of your customers' minds. Consider introducing subscription models, where applicable, to ensure a steady purchase cycle.
3. Increase Your Average Sale:
Increasing the average sale value is the third pivotal strategy in this trio. It involves encouraging your customers to spend more each time they purchase from your business.
Up-selling and cross-selling are powerful techniques to increase the average sale. Make sure customers are aware of premium product versions or related products that compliment their purchase. Additionally, considered bundling of products, offering comprehensive packages at a better value than individual buys. Offering free shipping on orders of a certain value may also encourage customers to add more items to their cart.
The golden rule of sales growth — acquiring new customers, selling more often to existing customers, and increasing the average sale — together form an essential blueprint for driving business growth. Separately, they can bring about incremental improvements; together, they can accelerate your sales growth exponentially. Therefore, in developing your sales strategy, remember, balance is key. Prioritize these areas simultaneously to ensure a comprehensive sales strategy. Optimizing these three factors can transform your business, ensuring an upward, sustainable, and balanced pathway to success.