The 3 ways to grow your Business
By offering a complete targeted design and marketing solution, Stratique will give you more effective creative design and marketing results for less cost. In the midlands there are a lot of B2B companies and that’s where our real specialities lie, although B2C marketing is fully within our repertoire. We will implement strategies to help you generate more leads, commence a dialogue with those leads and then introduce conversion strategies to turn them into loyal customers. Our intention is to ensure your marketing budget goes further than ever before. Stratique will help you develop and test sound marketing strategies to then up sell and cross sell additional products and services with sales and profit growth as the key driver.
Stratique will also help to position your brand correctly, improve the desirability of your products, packaging and services, and improve your customer relations through regular communications.
Growing your business can be a daunting and sometimes confusing and complex subject. This aims to break the process down into its simplest form so that you can plan your marketing activities with these main elements at your focus.
Its rather very simple
Your revenue stream relies on customers to pay you for goods and services and can be expressed as a simple equation:
Number of customers x Average cost of each transaction x Frequency of annual purchases = Annual revenue potential.
So if you have 100 customers spending £100 3 times a year with you then your revenue would be
100 x £100 x 3 = £30,000
Understanding this dynamic is extremely important to growing your business and developing your business growth strategies. Most companies will focus on growing their number of customers. In this scenario following a marketing campaign a 10% growth in the number of customers would produce a growth in revenue thus:
110 customers (10%) x £100 x3 = 33,000
Giving an annual increase of £3000
When you take into account the cost of the campaign and some future customer fallout then the scenario is break even at best.
Now look what happens when the marketing campaign focuses on all 3 factors; Number of customers, improving the frequency of purchases and also up-selling and cross-selling strategies to increase the average value of each transaction:
A 10% increase in the number of customers and average transaction value, plus increasing the frequency from 3 times a year to 4 times a year will see an exponential business growth
110 customers buying £110 worth of goods 4 times a year =
110 customers x £110 x 4 times a year = £48,400
Giving an annual increase of £18,400
Armed with this knowledge we can look at online and offline marketing growth strategies to generate leads for new customers, and develop existing business opportunities through regular communications with existing customers.
