3 Keys To A Winning Business Strategy
Sometimes even with a great vision, great people, and loads of accountability and discipline, some companies still can’t break through the ceiling and achieve growth. The issue is not with the way they execute, but the issue lies with their business strategy.
Every business must have a business operating system that includes both execution and strategy. You may get stuck if you don’t have both in place.
Business Strategy In 3 Steps
There are a ton of business strategy consultants in the world who like to make things very complex. However, as the great Peter Drucker said:
Because the purpose of business is to create a customer, the business enterprise has two–and only two–basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business.
Essentially, businesses only need to focus on the acquisition of a customer in order to grow and scale their business. Everything else is just a cost that needs to be controlled and executed upon in the most efficient way possible.
Innovation is simply the product or service you provide to the customer. Chances are, they are asking for it and your job is to provide it. Nothing complex about that.
Jay Abraham simplified business strategy into just 3 key activities:
- Acquire more customers
- Get customers to buy more
- Increase their buying frequency
That’s it. I’ve just simplified your business strategy forever. So let’s talk about the ways (73 of them) in which you can implement these 3 keys to business growth.
Acquire More Customers
In order to grow your business and break through to the next level, most likely, you will need to acquire more customers. So how do you do that? Well, we have a checklist for you. Just go down the list and determine what you are doing and what you would like to do in the future. Here are 47 opportunities for acquiring new customers as part of your business strategy. In addition, you’ll need to be very clear on your ideal client and Customer Value Journey.
- Free Consult/Assessment
- Flash Sales
- Offline Catalog
- Online Catalog (ecommerce site)
- Physical Gift/Premium
- Loss Leader Offers
- Live Events
- Traditional PR
- Meetup Groups
- Channel Selling, i.e., Amazon, eBay, etc…
- Facebook Advertising (Paid)
- Facebook Marketing (Organic) i.e. Pages/Groups/Events
- Twitter Organic
- Twitter Paid
- LinkedIn Organic (Messaging/Posts/Groups)
- LinkedIn Paid
- YouTube Organic
- YouTube Paid
- Search Engine Optimization (Google/Yahoo/Bing)
- Google AdWords (Search Network)
- Google AdWords (Display Network)
- Bing PPC
- Yahoo PPC
- Affiliate/Joint Ventures/Referrals
- Groupon/Living Social
- Content Syndication
- Display Advertising Offline (Trade Publications, Magazines, Etc…)
- Display Advertising Online
- Direct Mail (for acquisition)
- Email Advertising (Solos, Newsletter Sponsorships, etc.)
- Radio Advertising
- TV Advertising
- Distributed Sales Force
- Review Sites (Yelp, Angie’s List, Etc…)
While not of of these items will apply to your business it will give you a good list of ideas.
Get Customers To Buy More
In addition to acquiring new customers, you’ll want your current customers to spend more with you. This is a better place to start since customer acquisition costs are already paid for.
Think about Starbucks. They have an average lifetime value of a customer of $14,099. Which means, they need to spend less than $14,099 in advertising to acquire their customer. Getting your current customers to buy more is the most profitable activity you can do for your business.
Furthermore, we know that the company who is willing to pay the most to acquire the customer will win in the long run.
Here are 12 ways you can get your current customers to buy more from you.
- Immediate Upsells
- Cross Sells
- Slack Adjusters
- Bundles/Kits/ Value Buckets
- Line Extensions
- Customer Appreciation Events
- Done For You Service
- Expedited Shipping Offers
Again, depending on your business some of these may not apply to you. However, I’ll bet you can find at least a few opportunities to get your customers to buy more from you.
Increase Customer Buying Frequency
The final way to create an effective business strategy is to get your current customers to buy from you more often. How often have you met a lead and then forgot to follow up with them?
The key to this strategy is to be top of mind with your customers at all times. Never let an opportunity slip through the cracks. Serve them so well that whenever they are looking to make a purchase they think of you first.
- Regular Email Newsletter (Daily/Weekly/Monthly)
- Automated Sequential Email Follow Up
- Exit Offers
- Bounce Back Offers/Product Includes
- Loyalty Program
- Cart Abandonment Follow Up
- Direct Mail Marketing To Existing Customer Base
- Outbound Phone Follow-Up
- Coupon/Gift Cards
- Newsletter/Magazine (Physical)
- Customer Appreciation Sales/Offers
There are some really simple and easy ways to increase buying frequency and yet most companies don’t take advantage. For example, an automated sequential email follow-up program. This is a simple automation that takes a complete stranger to a customer in an automated way through email sequences. It works like a charm and you are never wondering if you are missing something.
Another great way to increase buying frequency is through retargeting based on interest. You can easily set up retargeting programs that run automatically based on prospect behaviors. You can serve them ads or content that is relevant to them while they are thinking about it. Super easy and very effective.
Get Rid Of Flavor Of The Month
Most companies I work with implementing the business operating system, EOS, have tried quite a few of these strategies and I’m sure you will too. Quite a few organizations chase this list as “shiny stuff” but never really complete any of them. You hear a great talk, read a great article, then you jump in a take action.
As a result, you end up with a bunch of “half built bridges” where nothing is truly effective. Please, don’t read this article and do it again. Just pick one or two strategies and complete the bridge. I wouldn’t be surprised if you get some immediate results if you do.
If you obsess over this list for 1-year, it’s possible for you to get at least a 25% increase in revenue. Who knows, you might even double it.
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