2018 Silver Bullet To Grow Your Local Business
Table of Contents
- 1 2018 Silver Bullet To Grow Your Local Business
- 1.1 So, why are so many local businesses not spending any time, energy or money developing the second and third ways to grow their business, spending all of their effort on customer acquisition?
- 1.2 So, what could local businesses do to ensure that they, too, are making a difference in their business’ growth trajectory?
Local businesses do everything they can to generate new business each and every month.
From looking to improve their Search Engine Optimization, to more sophisticated paid advertising campaigns, to elaborate offline print ads, to local directory books.
- Professional Service firms conduct timely and informative webinars as they look to draw the attention of their target client.
- Doctors and Dentists drive paid traffic into complex lead generation funnels… giving away a free exam or teeth cleaning.
- Restaurants place coupons in the local media to draw new customers with two for one specials.
Yes, it’s a fact. It’s imperative that you attract more paying clients, patients and customers to your business in order to grow.
However, it’s equally important to understand that customer acquisition is only 1/3rd of the business growth formula… only 33% of the equation. Are you ignoring the other 67%?
So, what are the only three ways to grow a business?
- First, to increase the number of clients, by turning more new prospects into paying customers;
- Second, by increasing the average transaction, getting each client to buy more at each purchase (i.e. “Would you like fries with that burger?“… “Would you like to be put on our dental maintenance plan?“… “We generally work on retainer…“.
- Third, by increasing the frequency that the average client buys from you, getting each client/patient/customer to buy from you more often.
So, why are so many local businesses not spending any time, energy or money developing the second and third ways to grow their business, spending all of their effort on customer acquisition?
Let me ask you a question.
Do you think that larger, mid-market or even bigger Fortune 1000 companies make this mistake? Heck no!
They have extremely elaborate CLV (Customer Lifetime Value) systems in place to track every single client/patient/customer.
- They know exactly how much each client spends with them, and how often they frequent the business.
- They know how much each transaction amounts to, and exactly how many days generally pass between visits.
- They have sophisticated and highly technical “trip wires” put in place to sound an alarm when a client doesn’t purchase when they should, or if a particular customer’s orders begin to diminish in value.
They get it.
They know that if they spend 33% of their time on customer acquisition, that means 67% of their time, energy and money needs to be spent developing their current customer base. And once that focus on their customers kicks in, that their business growth trajectory will change dramatically.
So, what could local businesses do to ensure that they, too, are making a difference in their business’ growth trajectory?
At Neovora, we’ve been working with local business for years, and we’ve put together a 3-step process that every local business can literally engage in their own company today. So, if you are a dentist, a plumber, or run a local café, this 3-step system will explode your top line growth in ways that you hadn’t realized were possible. And the best part about this 3-step system: it’s simple.
- First, you need to execute some form of ongoing communication system with your clients/patients/customers – preferably automated. Would you believe that over 73% of all local business have zero form of ongoing, personalized communication with existing customers. (Source: CNBC.com) Nothing. Not a birthday email… zero! This takes very limited effort and is super easy to execute. Set up a way to capture email address, then send out a short email each month… again, preferably automated. The point is to do it and start some form of monthly communication.
- Next, you need to get feedback from your clients. If you don’t know what they like the most about your business, as well as what they like the least, how do you expect to ever improve?Improving your business is important to you, right?
In 2003, Fred Reichheld of Bain & Company (one of the largest Management Consulting Firms in the world) created what is known as NPS (Net Promoter Score). This is one simple score that guides overall business growth. It is a truly amazing system, and simpler than you could possibly imagine to implement. Every major company around the world has now implemented the NPS system (takes about 4 hours to fully implement) and many smaller companies are now beginning to catch on.
We here at Neovora began using NPS back in 2009 and have been implementing it for clients since 2011. Now, imagine this, you are communicating with every single one of your clients on a monthly basis, and early in your communications you ask the NPS question: “On a scale from 0-10, how likely is it that you’d refer us to a friend, family member, or colleague?” When the NPS is fully implemented, the results are nothing short of amazing. Reichheld wrote an entire book about NPS, the subsequent score it produces, and the many ways to improve your company subsequent to executing the NPS process.
Would you believe that by improving your NPS score by 10 points you can literally double your revenue?
Now, I won’t’ take the time here to outline exactly how the NPS system works, but let me say this… when those of us here at Neovora were exposed to the NPS system, we were floored at its efficiency. There is no better way, in the history of business, to get such tremendous feedback from your clients/patients/customers. Nothing even comes close. We encourage every one of our clients to implement NPS with their outbound client communication initiative.
- Finally, the third element in our outreach process is a solid Review system. Think about it. 97% of consumers read online reviews for local businesses in 2017 (Source: BrightLocal). Consumers are using reviews to help them decide on everything. From where to go to dinner, to which pair of running shoes they’re going to buy next. From deciding on a Chiropractor, to who they are going to use to sell their house.Reviews are important, and reviews are powerful.However, it isn’t good enough to have 10-15 reviews from a year ago and stop. If you don’t have a constant flow of 5-star reviews… current… up to date reviews… prospective customers will move on to your competitor.
Now, let me ask you a couple more questions:
- Do you think that if you had the tremendous feedback that the NPS gives you that you could improve your business to the point that encouraged your clients/patients/customers to visit you more often?You’d better believe you can… and will!
- Do you think that with the now, highly coveted NPS data, that you can improve your internal processes and systems to encourage your clients/patients/customer to purchase more services/products with each visit?You bet!
Just imagine what a simple system like this would look to your business. You would have the feedback you need to improve your customer experience, thereby:
- Encouraging an increase in purchase or visit frequency,
- Adding upsells and cross-sells that could increase each purchase value,
- And spreading the news to more prospects who would come and do business with you.
Neovora has put together this simple 3-step system into a service called Touchpoint 80/20.
We do it all for you!
- We ensure that we set up a process where every one of your new clients is entered into a database.
- We send out a monthly email touchpoint.
- We put every customer through the NPS process… and subsequently through the most ingenious Review process, so that you ONLY get 5-star reviews!
If you’d like to learn more about how Neovora can get you started on leveraging the 20% of clients that will produce 80% of your business’ profits and spur fast growth, simply click on the link below, let us know how to contact you, and we’ll have a representative reach out to you.
Listen, yes it’s true, you need new client/patient/customers. But, as we know… this is only 33% of the growth equation. Reach out to us today so you can begin to leverage the other 67%!
(Oh, and I forgot to mention… you can do this for less than the cost of 9 days of your local coffee!)
Click here to schedule a 15 minute consultation to learn more about leveraging Touchpoint 80/20 and jumpstart your businesses growth potential!