Is your business ready for more growth?
January marks the beginning of strategy and planning sessions for building budgets for June 30 and onwards.
The following is a checklist for your consideration.
Is your business
(1) buyer-obsessed,
(2) focussed on retaining existing buyers and acquiring new ones?
What is your current budgeted growth rate? Has it taken into account the
- Total addressable market – is the market growing?
- Your current and budgeted market share – is it growing?
- What have been your long-term retention and new buyer acquisition rates?
Businesses that win more market share – grow faster – deliver more long-term shareholder value.
It all starts with – attention.
Buyer Acquisition Attention
Now the most valuable asset in the world today is capturing your ideal buyer’s attention.
It is a two-step process.
- We advocate that enormous lifts in attention (100x more for SMEs) capture growth opportunities. Being a tiny target – is a challenging and weak position to onboard new buyers – it doesn’t cost a lot more to be bolder and capture more attention.
- Your potential buyer’s attention improves by building or accessing better physical or digital products and services that are valuable and engaging – for them.
Buyer Retention Attention + engagement
Keeping your buyers is the sum of four parts – Onboarding + Engagement + Prevention + Resurrection. It is the same for both physical and digital purchases.
Onboarding and engagement are the most crucial — the steepest drop-off point is always at the beginning.
The critical metrics for onboarding successfully are
- Increase frequency of engagement – that builds on the buyers’ natural frequency. Ensure at the start they have best practice onboarding and engagement – more valuable contact as they settle in.
- Increase more features usage – the opportunity to upgrade – sell more of your business other services and products,
- Increase average sale value over time with added benefits,
Buyer resurrection has little economic value – it is usually a high-cost + high-risk pathway – once a buyer has determined to leave – resurrection has a low ROI.
Revenue growth is the output of buyer attention and engagement.
Revenue growth quickly captures their attention and engagement and how much-perceived value buyers can extract from your products and services.
The more they extract, the higher the value they are willing to pay.
Attention and differentiation, and segmentation
The problem is differentiating your business from your competitors – that your ideal buyers recognise – this is the solution we have been looking for t
Segmenting – finding the most profitable parts of your addressable market is crucial. Businesses can only service some parts of a market.
Positioning is orienting how your business thinks, acts and communicates to maximise its differentiation and segmentation of the market.
Communicate with an angle.
Compare these two USA credit card providers, Parker and Divvy.
Write for skimming – the average buyer has an 8-second attention span.
Understand the buyer – APOB.
APOB = Audience, Problem, Objections, and Benefits.
- Audience. Communicate as a friend – showing them the following steps and why
- Problems. Understand their biggest problems. Communicate with facts about how you solve them.
- Objections. Answer in advance their most likely objections.
- Benefits. List the benefits your ideal buyer will gain.
Know your competitors – close by and afar.
It is foolhardy not to understand comprehensively who, what and how they impact your market. There is a lot to learn and improve on now.
These are more newsletters that might help solve your growth problems.
Regards
David
