Tools for Post-Pandemic Business Growth
Now that the pandemic has shifted gear and as a business owner you’re adjusting to a new way of working, moving your business on to the next level may need some careful thought. You will have to take into consideration how things have changed in the past two years, how your employees or contractors want to work, and how your suppliers have changed their working practices.
But ‘helpful’ systems, tools, tips, and tricks to help you level up can often contradict each other and complicate matters so much they make your head spin!
Don’t despair! The great news is you don’t have to do it all on your own or at lightning speed. Good business growth comes from taking one step at a time, by doing just a few things and doing them well.
When it comes to growth, most businesses have too narrow a focus in what’s important. They consider one, two or three of the following drivers:
- Get more customers
- Convince their customers to spend more
- Encourage their customers to buy more often
While these are all important, they don’t provide the whole picture for growth. In fact, there are seven key drivers for business growth.
Driver 1 – More customers
This is the most obvious way to grow, though it is not always the most effective. Reaching out and grabbing people’s attention, getting their engagement, and finally securing that first purchase will look very different post-pandemic. It may also cost you more than the revenue generated from the first sale. If you are seeking to get more customers, think of doing it in the most cost-effective way possible.
Driver 2 – Better conversion rates
When you focus on getting more customers, it’s important to know your conversion rate – in other words, of all the people who show a passing interest (leads), the percentage of people who actually buygoods or services is the basis of the conversion rate. Gaining more customers, therefore, means generating more leads. But (and it’s a big but), always remember to look at what happens to those leads once they make themselves known. 2022 customers have very different mindsets to customers you had before COVID. Improving your conversation rate means getting a better return on your marketing investment and that’s a more effective way of growing your customer base.
Driver 3 – Increased customer spend
New customers are great. But never forget the value in the customers you already have. It is by far the simplest way to increase sales. Again, you will have to get to know them and their motivations as if meeting them for the first time. Existing customers may have changed their spending practices since the pandemic and if they are businesses themselves, you will have to think about their new ways of working too. Many of your previous customers may have lost business or reshaped their offering, while others may have downsized, so tread carefully and concentrate on building up a trusting working relationship with them.
Driver 4 – Improve buying frequency
It seems obvious by now but let me say it again. People have changed. We all know someone who has lost a loved one during the last two years. People’s priorities are not the same. Yes, customers will still want your goods or services, but only if your business aligns with their values. Increasing buyer frequency is often neglected but can be the most rewarding for your bottom line. How can you change your practices, services, and products to align with customers’ values? Answering this question is a sure-fire way of repeat sales.
Driver 5 – Keep customers longer
Do you know why customers leave you? And, before you say “price” let me tell you that, statistically, less than a third will leave because they’ve found somewhere cheaper. A few relocate or no longer have a need for what you sell but the vast majority leave because they aren’t happy with the service they receive. Ask yourself – how happy are your customers? How can we improve our services and products?
Driver 6 – Charge more
Many businesses have struggled financially through the pandemic and the temptation is to up prices wholesale. But incorrect pricing is why so many businesses struggle in the first place, increasing them without thinking about the consequences to your customers is a guaranteed way to lose them. However, there is a fear that any price increase will have customers leaving in their droves. Some customers who are very price sensitive will shop around and leave you but, if you continue to nurture relationships and offer a great service, most will accept an increase if you communicate it effectively.
Driver 7 – Systemise
Make business growth a habit by building systems around all the other six drivers. Having a good relationship with your customers and excellent communication with them means you can systemise many processes, from asking for referrals and getting new customers, to regularly market testing different price points.
It may still seem like a lot to do, but my recommendation is, keep it simple, be honest and nurture new post-pandemic relationships.
If you’re ready to make changes and grow your business, click here to download my business growth book and get top tips on taking your business to the next level.
