The most vital of them all – Reputation
Your reputation is the foundation of your business. And it’s never been easier for potential customers to find out what others think about your company.
As you know, more and more people search online before they buy. We know that people put a lot of stock in what they read online. In fact, studies show that 88 percent of U.S. consumers choose to do business based on online feedback— even when it’s from total strangers!
This probably isn’t anything new to you, and there’s a decent chance that, like most, you are not very pleased about some of the things people have written about your business!
The second R is Referral
Since you’re doing such a great job taking care of your customers and keeping them happy, the best thing you can do is set up systems to maximize the benefit you get from them, right? So that they are doing the marketing for you!
Like the 4 vital signs of a healthy body measuring the 4 R’s of your business will keep it alive and growingIt’s well known that if you just leave it up to people to do referrals for you, very few will even if they are very happy with you. You have to make it very easy for them to do it—almost effortless—if you really want to maximize your referrals. We all want referrals because they help us save money on marketing, right? But there’s even more to gain from referrals than cost savings: according to a case study noted in the Harvard Business Review, referred customers are, on average, about 18 percent more likely than others to stay with a company and they generate 16 percent more in profits!
The third R is Reach
It’s our experience that a business that wants to grow needs to make sure that more people know about it today than did yesterday. If you’re not meeting new people and telling them about your business, you’re not developing a pipeline of potential new customers and you are going to see slower growth in the future as a result.
The fourth R is Resell
Once you’ve done all of the hard work of getting a customer, you need to make sure to maximize the lifetime value, or LTV of that customer. And that means increasing the dollar value of each transaction or by increasing the frequency that customers buy, either by offering add-on services or upsells or cross-sells. McDonald’s is the classic example: ‘Do you want fries with that?’ ‘Do you want to supersize your order?’
These days there are so many cost effective and trackable ways to bring customers back to your business. To give you just one example, consider SMS coupon campaigns. With monthly costs lower than $30 to send 1000 text messages, and average redemption rates of 20 percent or more, it potentially costs less than 30 cents per customer in your door!
So, to sum up, it’s our experience that maximizing any of these R’s can lead to 25 percent growth at your business, and maximizing all four gets a compounding effect, helping a business really explode and start growing fast.
Does that make sense? Do you see how having marketing systems in place to optimize each of these four R’s could maximize the growth of your business?