Many businesses are in tactical hell. If you asked them, “What are you doing for your business? What are your key strategies?”
They’ll say things like, “Advertising. Podcasting. Twitter. Seminars. Email. Facebook.”
They’ve confused tactics with strategy.
But as you’ll learn, there are three key strategies that you can focus on to grow your business – the three revenue multipliers.
By following a simple intellectual framework and being strategic, you can actually get better results in less time. This framework is incredibly powerful and we adapt it to all our clients. It’s not a new concept, but it may be for you.
The most valuable benefit of this framework is that if you setup systems around growing these three revenue multipliers, you won’t have to worry about the next new digital marketing tactic – you’ll be able to decide what to do and what not to do with this simple framework, and most importantly whether it makes good business sense based on the multiplier it affects.
If you increase one multiplier by a percentage, you profit. But if you increase all three, it has a multiplicative effect.
So here it is. There are three fundamental ways that you can increase your revenue:
- Maximize Average Order Value (the price of your service)
- Maximize Purchase Frequency (how often someone purchases from you)
- Maximize Number of Clients (how many people are buying from you)
The strategy to growing your business is maximizing these three multipliers by providing more and more value.
As a business owner, this means that instead of looking at the million things that you could do (e.g. “tactical pulls” like print advertising, PR, Facebook, SEO, and email marketing), we now have a solid framework to evaluate these tactics.
Under these three strategies, we then list the tactics used to maximize the multiplier and systematically work our way down the list. We then test, track and measure what works and what doesn’t – if a tactic doesn’t work, then we try the next one until we break the code.
Assume your firm had an average order value of $1500, purchase frequency of once per year and a total number of clients of 80 this year:
- AOV – $1500
- PF – 1
- NoC – 80
- = $120,000
Even with conservative numbers – increasing your prices by providing more value and adding more new clients by 10%, look at what happens to this scenario:
- AOV – $1650
- PF – 1
- NoC – 88
- = $145,200
That’s a 21% increase of annual revenue!
If we’re able to increase your revenue multipliers and optimize for conversions, this is a totally new way of looking at your marketing.
It’s marketing that builds a better business.
We only focus on increasing each of these multipliers with our unique marketing systems through testing and tracking what works.
If our approach to digital marketing sounds interesting to you, apply to partner with us.