On Finding New Revenue Growth
Flavio Hangarter
Helping clever people in tech to develop innovative products and bring them to market.
While small marketing tactics tend to have a little shelf live, sometimes we can find a short arbitrage that yields some growth.
But the real growth in an existing business comes from three distinct levers.
Your conversion rates.
One of the most significant areas of growth in your business is tweaking your conversion rate. That is looking at your sales conversations and looking at maximising that conversion rate from whatever it is today. Just small iterations or changes to the process can ultimately, double, triple or even quadruple your conversion rate and in turn, affect your revenue and bottom line in the same manner.
Your lifetime value
The other lever of growth comes from increasing the lifetime value of your customers (LTV). Increasing LTV could mean exploring new ways to have your existing clients stay with you for longer or to increase the average revenue per customer.
Increasing LTV could mean exploring new ways to have your existing clients stay with you for longer or to increase the average revenue per customer.
Expanding the time your customers stay with you or increasing the average sales transaction will also have a significant impact on your income. No fancy marketing tactics, just looking at how you can provide additional value to your clients for them to stick with you for longer.
Your productivity
Lastly, one of the things that we keep forgetting about isn't necessarily marketing, or sales orientated but instead focuses on your productivity. It is about freeing up your time as a business owner.
Business owners are the visionaries of their companies. Your job as a visionary is to explore and exploit new ways to generate growth, new partnerships, new revenue-generating strategies and getting more sales.
Your job as a visionary is to explore and exploit new ways to generate growth, new partnerships, new revenue-generating strategies and getting more sales.
Freeing up time from day to day manual processes can have a profound impact on your company's ability to seize new opportunities. Look at which of your tasks are necessary and which you can outsource or systematise to free up time for strategic objectives rather than operational tasks.
PS: My name is Flavio Hangarter, I'm a Tech Founder who helps other entrepreneurs be more commercially smart. Check out my personal blog for more tips on how to simplify your growth.
Helping clever people in tech to develop innovative products and bring them to market.
4 年Very true John. I believe this also goes back to some of Michael Gerber's work and that the business owner must create systems to help them step away to become the business's Owner. This is more of a philosophical question but how could we measure pressure (stress?) and optimal delivery?
providing ladders to take the right steps # checking pressures in your systems #wastage of profits #pressure and wellbeing
4 年so much potential is lost because business owners don't focus on the last point. However we have a problem with this . Business owners specifically those who own SME are time poor and overwhelmed accordingly. The pressure they have placed upon them prevents that natural human instinct of creativity and adding value. So its a matter of being able to measure and understand the pressure being placed upon the business owner. Work out what is the maximum pressure that the business owner can withstand and still be optimal in the delivery of his/her role.
Reinvention Advisor | Coaching Purpose-Led Leaders | Transforming Organisations | #better People & Planet Change
4 年Valid points Flavio Hangarter, I particularly love 'Your Productivity'. If we are spending time and mental energy on the wrong levers we are missing the opportunity space. I think this applies to anyone working to affect change.