Little Tweaks You Make In Your Business That Will Boost Your Revenue in 90 Days (Results Guaranteed!)
There is no doubt that It’s getting pretty hard for Silicon Valley Venture Capitalist to resist the wooing of the lucrative Nigerian Marketplace despite the poor economic infrastructure.
With staggering sums of seed funding being tossed into tech startups in several industries, it is vivid that the ill tales of Nigeria that is continually propagated across global media channels hasn’t deterred the unwavering faith of investors around the world.
The Opportunity
According to Vice President Yemi Osinbajo, Nigerian start-ups attracted about $122 million out of the $492 million funding for African start-ups. Needless to say that these numbers will continue to diligently climb as more innovative ideas are being churned out.
However, there still seems to be a lot of untapped resources, underutilized assets, unconverted prospective customers and poor strategy and implementation among major players in the space.
All businesses are dynamic. That means they are driven by consumer needs and behavior.
The only way to stay ahead of the curve is to understand the consumer’s behavior and align your marketing message to what they are subconsciously doing, and literally be ahead of them.
Knowing Your Customer
However, it is easier said than done and that is because today’s customers are more empowered, more demanding, more curious and more impatient, and yet we find so many businesses treating all customers alike when in reality no two customer’s journey are alike.
To understand this, you must realize that your product or service is a means to an end, and therefore if you can clearly define what the successful customer outcome is you can then walk backwards and tailor a message that speaks to that customer and guides them on their journey.
And that’s why dynamic behavioural response marketing is the only way to engage your prospective customers and increase the lifetime value of the customer because their experience is personalized and we all love to be recognized in a crowd, so also your customers want their needs to be clearly understood.
Thus having a good idea of the customer’s needs and motivation will give you insight to the right message-to-audience match and also unveil the most profitable segment of your audience, and allows you to focus all your marketing budget on the right customers and stop trying to convince non-buyers who wouldn’t budge even if you give them a black Friday deal every day.
Keep in mind that there are two basic models we should have in mind with respect to growing the brand:
- Market penetration strategy
- Market domination Strategy
Market Penetration
This basically focuses on getting customers to come on board and have a taste of your product/ service with an incentive as the bait. To make this successful, especially from an online marketing perspective there are a few things we would make assumptions on until we have data to back it up.
- Lifetime Value of the Customer (How much a customer spends with us over time)
- Average Customer Transaction (the average cost of the transaction)
- Cost Per Acquisition (Cost to acquire a customer)
- Breakeven point
(Recommended: 5 Business Metrics You Should Pay Attention To If You Want To Scale Your Business)
To achieve this, we would map out a series of milestones along the customer’s journey and engage and re-engage them till we hit the numbers we want.
Market Domination
This phase requires exponential thinking, and exponential thinking takes into consideration what your ideal customer purchases before, during and after engaging your product or service and then create an ecosystem around the customer that makes it almost impossible to engage any other brand in your space.
In other words, Customer X is already spending money on the other things so why not just get a piece of the several transactions by offering a suite of complementary products.
According to marketing legend Jay Abraham, there are only 3 ways to grow a business:
- Increase your number of customers
- Increase your average order value (thus increasing your profit on that transaction)
- Increase the frequency of purchase
Example: Running The Numbers
| Month | Ad Cost | Leads | Customers | Price | Frequency | #Transaction | Profit |
| 1 | $100 | 500 | 20 | $400 | 1 | 8,000 | 6,900 |
| 2 | $200 | 1000 | 40 | $400 | 1 | 16,000 | 14,800 |
| 3 | $200 | 1000 | 40 | $450 | 2 | 36,000 | 34,800 |
| 4 | $400 | 2000 | 80 | $450 | 3 | 108,000 | 106,600 |
Now, this is just a scenario and in all cases we’ll have a fixed cost of $1000;
Month #1:
We ran a campaign of $100 and generated 500 leads which brought in 2o customers who bought once from us and the transaction was $8,000.
So, Profit = Revenue Generated – (Fixed Cost + Ad Cost)
$8,000 – ($1,000 +100) = $6,900
Month #2:
We ran the same campaign but doubled our budget to $200 and generated 1000 leads which brought in 4o customers who bought once from us and the transaction was $16,000.
So, Profit = Revenue Generated – (Fixed Cost + Ad Cost)
$16,000 – ($1,000 + $200) = $14,800
Month #3:
We ran the same campaign with a budget of $200 and generated 1000 leads which brought in 4o customers who paid an extra 500 for home delivery and bought twice in a month and that month’s transaction was $36,000.
So, Profit = Revenue Generated – (Fixed Cost + Ad Cost)
$36,000 – ($1,000 +200) = $34,800
Month #4:
We ran the same campaign but doubled our budget to $400 and generated 2000 leads which brought in 8o customers who paid an extra 500 for home delivery and bought thrice in a month and that month’s transaction was $106,600.
So, Profit = Revenue Generated – (Fixed Cost + Ad Cost)
$108,000 – ($1,000 +400) = $106,600
As we can clearly see that a few tweaks in our numbers actually helped us scale the business in four months. Now, this can be easily done once you know your numbers.
In conclusion, take a look at your business and think about the little adjustments you can make than will boost your bottom-line in the next 90days.
It’s that simple and you can do it.
If it’s quite a challenge for you just reach us and I’ll walk you through this in a step-by-step format.
In addition to that, here’s what I want you to do, leave us a comment or subscribe to get strategies to grow your business.
