Over the years of being involved in a large number of entities both large and small, I always try to break things down as simply as possible. This has two main benefits, firstly it allows one to really drill down to what matters in the problem at hand, and secondly makes it mush easier to relay the objective(s) to team members and clients.
Today I am going to address how I look at business development and further revenue maximization in a three point formula. I always apply this to any new business venture or deal that I may be getting involved in, as it offers a great tool to assess pros and cons across opportunities.
The three buckets are:
And although I am going for simplicity, one should never view these as isolated silos of the business acquisition cycle, as may areas will interconnect. With that being said the BIG revenue driver for many businesses comes from the proper development of the RETENTION phase, which is often neglected over the focus on new client attraction. But you need an egg before you get a chicken. So first things first, how to attract and then convert….
How do you make potential clients become aware of your product or service…? And at what stage of their awareness are you targeting their needs…? To answer these questions you need to know exactly who you are looking to target, what need or pressure points are you solving for them…? Attraction tools include but are not limited to: lead generation services*, social media, highly ranked website for your key phrases, targeted ads on social media such as Facebook & LinkedIn, print media, radio, TV, etc… You need to reach the attention of your targets and give them a reason to “go down the rabbit hole” and see what you really have to offer.
This is now where you need to fulfill the promises of the bait that you attracted the interest with in the first place. It is always a delicate balance managing expectations of clients, as if you over promise you will have high client loss, conversely under-promise and you may never get any clients. The key to conversion, is clearly delivering the benefits of your product and service to the client’s need. It may be an immediate satisfaction like a cold ice cream on a hot summer’s day, or retirement planning for financial security in your autumn years.
Now for the BIG VALUE CREATION stuff! Retention does not solely mean to retain the same client to repurchase, but I also more importantly take it to mean retaining a happy client and hopefully a brand ambassador. So once you have mastered your business model attraction and conversion, your attentions really need to focus on the engagement of those current clients. In today’s world with brand management services*, social media, email, and fantastic Client Relationship Management (CRM) tools it is easier than ever. So close the loop and start feeding the “ATTRACTION” of clients through the proactive retention and engagement of your current client base.
Business Growth Take-aways
Business is a complex “business”, but if you manage your own unique three stages of the business client acquisition cycle you will be highly successful. So make sure you fill a need, convey the need to ATTRACT, prove the need to CONVERT, and really turbo charge your business through RETENTION by making happy clients who repurchase and act as an army of walking and talking brand advocates!