I see too many business owners working too many hours for too little return. These business growth strategies are designed to help you work less but make more.
This third strategy will take some careful thought but should not be overlooked by small businesses.
The third strategy is to Increase the Average Size of Each Transaction.
One of the things I enjoy most as a Houston business coach is helping the small business owner analyze their business model or business formula. You need to know how many transactions you have each day, week, or month. And you need to know the average size of each transaction.
Once you have this financial intelligence you can track and measure your strategies to know what works and what does not work!
In order to increase the average size of each transaction you should consider these tactics.
Listen to Your Customers
Survey your customers to know what their needs and wants are. You can do this formally (through research) or informally through conversations, or both! Solicit their honest feedback on what they like and don’t like currently. By doing this you will discover how to improve your service/product so that they will want to buy more. You’ll also get great reviews and testimonials you can use to promote your business!
Cross-Sell
Let your customers know of other services or products that you offer. Market to them regularly so that they will be educated on how you can add additional value to them. If they are using one of your products or services, chances are they might be interested in another. And if they are already satisfied customers, the sales pitch won’t be as tough!
Provide Volume Incentives
There are many different ways to do this through volume discounts, volume add-ons, or volume rewards. Reward the clients and customers you have that purchase lots of your products or use your services on a regular basis.
Bundle Products or Services
This is similar to a volume incentive. However, the difference is that you are combining particular services that work well together to add more value around the same need or want. Mobile providers and cable companies are great at doing this, and it works!
Raise Your Prices
This scares most small business owners! I’ve seen many business owners keep their prices way below the market value because they are afraid of losing customers by raising their prices. However, my experience has been that this rarely happens. Your customers and clients actually expect your prices to go up at some point. They will continue to buy from you if you continue to provide excellent value and service.
These are 5 ways that you can increase the average size of a transaction.This may be a strategy you should consider for your business! If you need help or guidance in this, feel free to contact us for a free strategy session to help you get on a growth track!
