One of the greatest keys any small business owner can master in order to watch their online profits rise is creating marketing strategies that sell more of their products. Fortunatly for you there are a few proven and reliable strategies that work for almost everyone. In this article we will discuss some dependable marketing strategies to help your business prosper.
Continuous testing is a part of a greater philosophy of something called “continuous improvement.” It is one of the greatest secrets behind Toyota’s massive success. Continuous testing enables you to:
> Achieve higher sales and profits
> Lower your costs
> Watch your money grow day by day
So how does continuous testing work? It works by constantly trying out new things on your website and seeing if they improve your sales. This simple concept has turned small business owners into multimillionaires. Here is how you do it:
Take your current website and add one thing to it that you think will help improve your sales. Next take both versions of your website (the current one and the improved version) and test them out in a “Content Experiment” using Google Analytics.
This is a free tool from Google that enables you to see whether or not your improvement to your website really has improved sales. Sometimes the improvements to your website will help increase sales, other times it will hurt sales. Whats important is to know which improvements hurt sales and which ones help.
The only way you can know for sure is to run a scientific experiment like on Google Analytics. Do this day after day and you can watch your profits increase by as much as 1200% in a single year! Imagine if next year you were making 12 times as much money from your website as you are now without spending an extra penny! This is possible when you follow the principle of continuous testing.
Increasing Lifetime Customer Value
You can average out how much each customer brings to your business over their lifetime. For example, if the average customer purchases $12 worth of goods from you 10 times, that’s an average of $120 per customer. Knowing this metric is vital to your business because by improving it you can create an overnight miracle in your business.
Think of it this way, a 10% increase in your average lifetime customer value means at least a 10% increase in your profits. Increase lifetime customer value by 50% and you just added an extra 50% or more to your bottom line.
There are three primary ways you can increase your lifetime customer value:
> Getting your customers to buy more expensive stuff
> Getting your customers to buy more often
> Keeping your customers for longer
Let’s go over how you can accomplish these three goals.
Getting Your Customers To Buy More Expensive Stuff
You can get your customers to spend more money and make larger purchases in several ways:
- Increasing your price (often you can increase your price by 10-40% with little to no loss of sales, sometimes sales even increase as a result of raising price!)
- Up-selling and upgrading normal customers. This is where you offer a customer a deluxe or better version of what they bought at the time of purchase. The easiest way to understand up-selling is when you go to McDonald’s and they ask you “would you like to super-size that?” Ask your customers at the time of purchase if they would like a deluxe version of what you offer.
- Offering customers additional products while they are buying your existing product. For example if you own a roofing company you could offer your customers roofing insurance.
Getting Your Customers To Buy More Often
Next you want to get your customers to buy more often. Part of this is knowing what your customers buying cycle is. For example roofs may have a 10 to 20 year lifecycle. Where as a pizza shop customer may purchase pizza every week.
However frequently your customers purchase, you want to stay in touch with them and be there when they are ready to buy again. You do this by getting your customers contact information such as email or phone numbers and contacting them when its buying time again.
Its an easy, yet overlooked way to dramatically increase any businesses sales.
Keeping Your Customers For Longer
You can keep your customers for longer (and thus increase how much they buy from you) by first and foremost improving customer satisfaction.
> Allow your customers to complete an anonymous survey of their likes and dislikes with your company
> Keep in touch with your customers and create customer appreciation events. Send them cards for their birthday and Christmas.
> Find ways to lock in your customers through service contracts and bulk buying discounts
The idea is to tie your customers tightly to your business through both:
- Emotional connections and relationships with your business
- Offering advantages to your customers for their loyalty
You want to reward your customers for staying with you longer. Consider creating exclusive discounts for customers who have been with you x number of years or only for people who buy x number of times.
Continuously test your website to find better ways of making profit off your website and focus on increasing your lifetime customer value. Carefully monitor your marketing statistics and continually work to make more profits from your customer base. Doing so could result in you making 4x… even 12x what you are right now.