It’s been a while people; I know. Truly I do need to take my own advice when it comes to consistency and branding.
That’s why I’m re-branding and really planning on being consistent on this blog
. I want to keep sharing insight that will help a lot of start-up entrepreneurs in Africa on how to keep running their businesses and grow them ^_^
This post today was inspired by a webinar I was watching a few days ago – Automated by Drip; it really was about E-commerce and how online businesses can grow their audience using E-mail. I’m really working out our marketing strategy for Amari
and working on tapping into e-mail marketing for our brand to increase engagement and revenue; so I’m really looking for information on how to do it effectively – hence watching the webinar. I took a whole lot of insight from it; but this really stuck with me and blew my mind on the simplicity of this advice and it got me thinking on how I can use it for my business as well as how other entrepreneurs can use it, so take notes, hehe ^_^
Getting to the point; two ways to increase or double your revenue:
One – by doubling your advertising budget. Now; to be honest; that would be quite difficult for start-up entrepreneurs since for a lot of us, we’re limited on resources (cash to be specific).
Increase your marketing budget to double sales if you have the capital
If you have the capital – go for it. However; it may not be an option for you at this time (if you’re cash-strapped) – so what’s the second way of doing it?
Second Method: It’s a 3-part strategy:
1 – Increase your customers, 2 – Boost your average order value and 3 – Increase purchase frequency.
As business owners growing our brands; this is really what we’re always trying to do; but for some reason when the webinar speaker mentioned it – it was amazing when neatly arranged in this way. I just love it!
You may be wondering how you can apply this to your business? I’ll share a few ways for each step and the important thing to know is that you should really work on all three steps; not just choosing one.
- (Step 1) Increase your Customers
Having a marketing plan
is really important when it comes to this particular step; this is because for you to get more customers – more people have to be aware of your brand’s existence. Become more consistent with your marketing; whether it’s on Social Media, blog and/or site, E-mail marketing, etc. Have a plan and consistently market your business. Find out what type of marketing is working for your particular business and niche and keep doing it. For example; if you sell cakes and your revenue last month was 15 clients buying cakes at 2,000/- your sales were 30,000/-. If you increase those clients by just 40% ( 6 customers) – then for this month sell cakes to 21 clients @ 2,000/-; your sales will be 42,000/-
Get more clients buying your products ^_^
- (Step 2) Boost your average order value
This means that for each order; the value should be higher than before. An example; if your average order value per sale from your last quarter sales was 2,000/-; assuming that for 3 months, 15 clients each month with each order averaging at 2,000/-; total sales for the quarter was 90,000/- (30,000/- x 3 months)
If you increased your order value by 30%, each order would be an average value of 2,600/-; so for your next quarter – still keeping in line with the 15 customers per month, each spending 2600/-, for the 3 months sales would be 117,000/- (Monthly sales of 39,000/- = 15 customers x 2600/-; Then 39,000/- x 3 months = 117,000/-
). Can you see the improvement?! Now of course this strategy would take dedication and abit of time, marketing
and planning – but it can work to your advantage when you stay commited and execute. You can choose to still maintain prices on most of your products; but pair up some items e.g. If you sell 1 Kg cakes; market and give incentives for customers to order an extra product e.g. cookies or a box of frosted cupcakes. You can also choose to introduce products in your menu that are of a higher price – make sure they are premium products and market them well to entice your audience. When planned properly; you can also choose to increase your product prices as well; just make sure to plan your marketing well and ahead of time.
- (Step 3) Increase purchase frequency
For this step; you also need to streamline your marketing efforts, as well as your customer service as well. You can do this in several ways; make sure to reach out to you clients after they buy to get feedback and ensure you have their contacts in order to market to them again at another time. You can then wait for a specific period, e.g. 3 weeks and market to them directly e.g. sending an SMS or email on current sales, discounts or flavors available. You should also ensure that you ask your clients to follow your brand on social media in order to stay updated on deals, specials and other products you offer.
You can decide to start a rewards and/or loyalty program for your business that will engage your past clients and keep them engaging with your brand on your products as well. Offer purchase incentives that will be rewarded with time; this will ensure purchase frequency from your customers.
There are so many ideas on this particular topics you can try out – the overall point is to keep connecting and engaging with your customer base. This will not only get them to connect with your brand emotionally; it’ll keep them coming back. Get creative and find out what works for your business ^_^
I hope I have been able to share and expound on this insights well – I know I’ll be using them in my business, I hope you will too!
Has this post been helfpul to you? Do you have any ideas on how to implement the steps I’ve shared above that you would like to share? Feel free to comment below – I’ll truly appreciate it!
All the best in your business. Stay strong – work hard and work smart!