Scaling Through Loyalty

Upscale office

Yesterday we spoke about pricing to help drive growth.

Today we can talk about increasing the volume of purchases.

Now when it comes to growth by more purchases, many business owners automatically turn to advertising and trying to accelerate customer acquisitions.

Of course have a constant pipeline of high qualified prospects is important.

And keeping that pipeline moving often keeps us up at night.

But what if I were to tell you that the majority of businesses that scale and grow to become leaders in their segments and then sell for top money often grow a different way.

In fact, 80% of their growth ends up coming from existing customers.

Customers they have treated well, nurtured, built relationships and often turned into passionate fans and advocates.

It’s like a sports club with a passionate fan base. They sell out their season ticket packages year on year often with little to no advertising because the existing fans keep renewing.

And it makes sense when you think about it.

Your existing customers know you and often trust you.

You can ask them directly in an email to buy from you and they do. You don’t need to tell them why they should buy from you or educate them on the value of what you stand for and provide.

And yet…many of us reverse the 80% equation in our heads and throw 80% of our energy and investments in trying to convince strangers to buy from us, while neglecting our friends.

How often do we see businesses shower their sales with all the cool toys but customer service is seen as a luxury and best to be outsourced elsewhere.

It’s as if you had a business with 100 customers and you want to grow the business 10%.

Would it be easier to find 10 new customers from scratch? If so, Where would you advertise? How much would you have to spend? How do you qualify the leads?

Or

Convince 10 existing customers to repeat their purchase or buy another product or service?

How much would you have to spend in both scenarios?

The answer is why classic direct marketing was always willing to break even or even take a loss on an initial transaction to get a customer in the door.. and then make profits on the repeat purchases and long term relationships.

What is your ratio of revenue from new to existing customers?

To your success and sanity,

 

Thinking About Selling Your Business

We know you’ve worked hard on your business. What if we told you there’s a way to make it even better, and position it to sell one day at the top price? With Socratic Scaling, we can show you how.

In as little as six months, we can help your business stand out, scale up, and become something others would have to pay top money to buy.

The best part is these benefits start today. Even if you don’t want to sell, your business will put more money in your pocket, free your time, and be more enjoyable to run.

But you need to start getting ready now. Don’t be like the 7 out of 10 business owners who put it off until tomorrow and then find out they’re stuck with profitable businesses that no investor wants to buy, or child wants to inherit.

Click here to transform your business to give you the life you want – starting today.