The Best Way to Leverage the Growth in Your Business – Part 2

by MHolland | Feb 21, 2025 | Business Tips, Cash Flow, Selling Tips

What’s the 2nd Way to Grow Your Business?

Last week, we explored the 1st Way to Grow Your Business—increasing the number of ideal customers or clients. We discussed the power of profiling your best customers and developing relationships with companies in other industries that serve the same market. This strategy helps turn a cold marketplace into a referral-driven one.

Today, let’s dive into the 2nd Way to Grow Your Business, which is a game-changer if you already have an existing customer base.

Without further ado, the 2nd Way to Grow Your Business is… drum roll please…

Increase the Frequency of Customer Purchases

Once your business has been operating for a few years, you’ve likely built a solid list of past and current customers. Many businesses focus heavily on acquiring new customers while overlooking a massive opportunity—getting existing customers to buy more often.

Find Your Key Number

Before you can increase purchase frequency, you need to measure where you stand. The key metric here is the average number of times a customer buys from you.

To find your baseline:

1. Determine your number of active customers.
2. Calculate your total number of sales invoices over a specific period (e.g., annually).
3. Divide total sales invoices by active customers to get the average number of transactions per customer.

Now, the goal is simple: increase that number.

This approach shifts your focus from constantly chasing new customers to delivering more value to those who already trust and like your business.

Avoid This Costly Mistake That Drives Customers Crazy!

Big corporations often get this wrong, frustrating their most loyal customers. Think of major telecom companies (you know the ones—starting with “R,” “T,” and “B”).

They offer amazing incentives to new customers while ignoring longtime, loyal ones. If you ask for the same deal after 20 years of loyalty, they tell you, “Sorry, that’s for new customers only.”

Even worse, existing customers are often stuck in outdated, expensive plans. The only way to get a better deal? Threaten to leave. Suddenly, they pull out a “retention plan” to keep you—something they could’ve offered all along.

The irony? These companies pour money into acquiring price-sensitive new customers while neglecting their most loyal, high-value ones.

How to Get Customers to Buy More Often (Without Being Pushy)

Now that you know the strategy, let’s brainstorm creative ways to bring customers back more frequently—without being “salesy.”

Gather your team, grab a whiteboard, and jot down every idea. No filtering! A “bad” idea might spark a brilliant one.

Ask yourself these key questions:
✅ Does this save my customer time?
✅ Does this make their life easier?
✅ Does this save them money?
✅ Does this add value to their experience?

Some simple but effective ways to increase purchase frequency:

• Regular newsletters featuring new products/services (especially during slow seasons).
• Loyalty programs that reward repeat business.
• Incentives for off-peak times (e.g., a restaurant offering free desserts on slow Mondays).
• Special events (e.g., a motorcycle shop hosting a local band for a new model launch).
• Expanding your product/service line to offer more value.
• Educational content to inform customers about your offerings.

Real-Life Case Study: How a Business Revived Sales Overnight

A friend’s father was about to lose an anchor tenant in his commercial building. The company renting the space was struggling and considering shutting down.

I met with their executive team, including a group of seasoned venture capitalists who owned part of the business. You could feel the skepticism in the room when I said:

“There are only four ways to grow a business.”

I divided a whiteboard into four quadrants and wrote each growth strategy at the top. Then, I asked a simple question:

“How many customers have you served over the years?”

Their answer? 30,000–40,000 customers.

I followed up: “Do you have a database of them?”

“Yes, we do.”

Then came the question that changed everything:

“When was the last time you contacted these customers?”

The room fell silent. The Director of Sales started fidgeting—then actually got up, realizing where this was headed.

That same day, they mined their customer database and reached out to former high-value clients. Within hours, they secured some of the biggest orders in company history, including deals with U.S. customers.

They went from the brink of bankruptcy to record sales—just by reconnecting with past customers.

Final Thoughts

The easiest sales to make aren’t to strangers—they’re to people who already trust your business. By focusing on existing customers, you can increase revenue without spending a fortune on new customer acquisition.

Next time, we’ll dive into the 3rd Way to Grow Your Business. Stay tuned!

Leverage Your Business – There Are Only 4 Ways to Grow, As You Know

by MHolland | Feb 13, 2025 | Business Tips, Cash Flow, Selling Tips

Most businesses have a sweet spot – a hidden strategy that can really propel their growth and profitability.

To discover the hidden gold in your business it helps to use a particular lens or focus to reveal where it might be.

The tool that we use to help our clients find the gold that lies hidden from sight in their business is the 4 Ways to Grow your business.

You see, there are only 4 ways to grow a business – strategically speaking. You may come up with hundreds of ideas, yet each idea will fit inside one of the 4 boxes that exist for all businesses.

In this Blog I will share with you the 1^st way to grow your business, and for the next 3 Blogs I will add one each week until I have covered all 4 in-depth.

What is the 1^st Way to Grow Your Business?

The first way is the one most people spend all their time and money at. It is to Increase the Number of Your Customers/Clients.

Pretty obvious right. I help people qualify this by adding “of the type you want” to the end.

The first thing to do is to create a customer profile of the type you want. What are the characteristics that are important to you? Do demographics play a role? Income levels? Age? What do they do for a living?

Find out who your “A” clients are. One characteristic for our Controllership business is “positive, pleasing personality”. It is number 1 on our list.

That does not mean our clients need to be sugary, sweet individuals! In fact, some can be very abrupt at times. They just don’t blame others when things go wrong, and they treat our Team with polite professionalism. They listen to our advice and respect it.

There are about 8 more items on our client profile list.

What is your ideal, client profile?

One way to start this process is to break your existing customer base into groups.

Here are some ideas on how you can categorize them:

1. Total value of sales/ customer
2. How many years have they been a customer?
3. Number of times they do business with you/year?
4. How quickly they pay?

Let’s say you now have 4 groups of clients – A, B, C and D. And, let’s assume that “A” clients are your best ones, and “D” clients your worst. (And, by the way, when I say worst, I do not mean that the “D” clients are in any way bad people. It may simply mean they don’t buy much from you, demand the most attention, and pay the slowest!)

Once you have your 4 groups, you can now dive deeper into your “A” and “B” clients to determine what are the characteristics of this group.

And, then the key question to ask here is this:

Who – as in what other industry – is servicing this group?

Here is an example of what I am getting at. Let’s say you are a law firm and you have classified your clients into 4 groups, and you discover that all of the clients in group A go to large accounting firms for their corporate and personal accounting and tax work.

This is critically important information…. which I will come back to later in this Blog…

How Most Businesses Get More Customers

To get more customers, most businesses use traditional methods like advertising on the radio, TV, newspapers. They also do direct mail, direct phone calls, social media and Google ad words.

The two things all these methods have in common is they are expensive, and they are targeting new business in the cold market place.

And cold it is indeed as anyone knows who goes after new business in the cold marketplace. They don’t know you and you don’t know them. It’s like going to bars to meet your significant other. Possible, yet difficult!

There are much better ways to increase your customer base than just targeting the cold marketplace.

I will focus in on two very powerful ones now….

What is Way Better than the Cold Marketplace?

Asking for referrals or giving incentives to your existing client base is a great way to expand your chances of getting more customers of the type you want.

So, if you have done your homework by segmenting your customer base into A, B, C and D customers, the next step is to ask those A and B clients for referrals.

Here, the old adage is true – birds of a feather flock together – by asking for referrals from your existing customer base, two good things happen.

The first is this – referrals are not from the cold marketplace. This means that the person coming to you has been recommended by a friend they know and trust. You will have their trust likely passed on to you. Or, at least enough trust, to either listen to what you have to say, or, better yet, trust you enough to try your products or services right away.

The second good thing that happens is that it is an inexpensive way to market your products/services.

Now, that said, there is one limitation. And that is this – it can often be a slower way to grow, as your clients or customers just may not take the time – even with incentives – to nudge customers your way.

Which leads me to, another, surprisingly less utilized way to increase the number of customers of the type you want….

The Single Best – and Least Expensive Way – to Increase Your Number of Customers

Earlier in this Blog I talked about asking yourself this vitally important question – “who is serving my customers in another, perhaps somewhat related industry?”

An example for our Outsourced monthly Controllership business are banks. Banks serve our clientele. As do larger accounting firms who do not do what we do.

Here are some simple examples to get your ideas flowing:

• Massage therapist – hotels and bed and breakfasts
• Real estate brokerage – developers
• Greenhouse grower – landscapers
• Home Health Care services – doctors, nurses, hospitals

I think you get the idea here.

Once you have identified the industries, then what you do is develop relationships with people in that industry. Inside of those relationships you educate them as to the benefits for their customers from doing business with you. Most people love referring when it makes them look good in their customers’ eyes to help them in areas where they don’t compete.

Most of our clientele was built around referrals from banks and credit unions because they see the need for and the value of our service often before anyone else does.

So, what I recommend you do is start a list of all the businesses that serve your best customers and start building lasting relationships with them.

Oh, and the way to build trust with those other businesses – those referrers – is to make sure you cross-refer back to them!

All the best, and thanks for reading…

Grow Your Business with Strategic Alliances

by MHolland | Dec 20, 2024 | Business Tips, Cash Flow, Selling Tips

Growing your business one customer at a time in the cold marketplace is expensive and slow…

Want to reach more customers and grow your business? Partnering with associations and non-competing businesses is a smart way to do it.

These alliances can expand your reach, boost credibility, and create win-win opportunities.

Here is how to make it happen…

Why Strategic Alliances Work

Alliances let you tap into existing customer bases. For example:

• Associations: They have large, engaged networks. Partnering gives you direct access to their members.
• Non-Competing Businesses: They serve the same customers but offer different services. Together, you can provide more value.

Think – a landscaping company teaming up with a property management company to offer bundled services.

Find the Right Partners

Not every business or association is a fit. Focus on those with similar goals and values. Ask yourself:

• Who already works with my ideal customers?
• Do their services complement mine?
• Are they respected in their industry?

For example, a church accounting service could partner with a non-profit software provider. Both serve the same audience but solve different problems.

Create Mutual Benefits

Successful alliances benefit both sides. Your proposal should show what is in it for them.

• Revenue Sharing: Offer referral fees or profit-sharing for leads.
• Customer Value: Combine services to create a better solution.
• Shared Marketing: Split the cost of campaigns to reach more people.

For example, a customs broker partnering with a logistics company for seamless cross-border shipping.

Leverage Associations for Credibility

Associations are gatekeepers. They can boost your credibility fast.

• Attend their events to network.
• Sponsor conferences to highlight your expertise.
• Offer value, like workshops or webinars for their members.

A flower grower might team up with a horticultural association to offer tips on sustainable farming. It is a win-win.

Use Technology to Collaborate

Digital tools make partnerships easy.

• Shared CRMs: Use systems like HubSpot to manage referrals.
• Co-Branded Content: Create joint blogs, emails, or social posts.
• Virtual Events: Host webinars or live Q&As together.

These tools save time and amplify your efforts.

Build Trust and Stay Connected

Strong partnerships need trust.

• Communicate often. Keep your partner updated.
• Deliver results. Do what you say you will do.
• Review and adjust. Check in to ensure the partnership works for both sides.

Happy partners stick around.

Measure Success

Track results to see what is working.

• How many leads or referrals did the alliance bring in?
• How much revenue came from the partnership?
• Are customers responding positively?

Use the data to refine and grow.

Final Thoughts

Strategic alliances are powerful. They open doors, create opportunities, and strengthen your business. Start by identifying the right partners and reaching out.

Thanks for reading…

Is Price Really the Biggest Issue in Sales? Exploring the Value Beyond Cost

by MHolland | Nov 13, 2024 | Business Tips, Cash Flow, Selling Tips

When it comes to sales and marketing, many businesses are tempted to treat price as the ultimate selling point.

But does focusing solely on price really drive the best results?

Studies suggest that it may not be the deciding factor we think it is. Instead, it is just one component of the larger value customers consider before making a purchase. Here, we will explore why focusing beyond price can increase profitability and customer loyalty.

The Myth of Price as the Driving Factor

Price is frequently believed to be the single most important aspect of a customer’s purchasing decision. However, data tells a different story. According to one survey, only 15% of customers make decisions solely based on price, while a whopping 68% leave a business because they feel that it is indifferent to them. This insight challenges the notion that lower prices alone can attract and retain customers.

Customers prioritize factors that give them a sense of value beyond mere cost. They want solutions that address their needs, along with a positive experience. As a result, focusing exclusively on price often overlooks the real motivations behind a purchase.

Understanding Customer Decision Factors

When considering a purchase, customers typically weigh various elements. Here are some of the top factors besides price:

• Quality: Customers want products or services that meet their standards and last over time.
• Customer Service: Excellent customer service adds significant value, as customers want to feel acknowledged and supported.
• Convenience: Easy access, fast delivery, and flexible payment options all make a company more appealing.
• Warranties and Guarantees: Risk reduction through warranties offers peace of mind.
• Personalized Assistance: Many customers appreciate knowledgeable advice and support, especially for more complex purchases.

These factors combine to create a perception of value that transcends the simple dollar amount.

A Closer Look – Why Customers Leave

In the same survey, customers were asked why they chose to leave a business. The reasons were illuminating:

• Convenience accounted for just 3% of customer losses.
• High-level relationships—such as a shift to a trusted friend or family member’s business—represented 9%.
• Product/price/time concerns accounted for 15%.
• Finally, perceived indifference—the impression that a business did not genuinely care about its customers—was the leading cause, at 68%.

This shows that price is not the primary reason customers leave; rather, it is the lack of personal engagement and attention. When customers sense that a business does not value their patronage, they quickly turn to a competitor that does.

Real-World Case Studies: Price Is not Everything

Many businesses that consider themselves in “price-sensitive” industries have discovered that focusing on non-price factors can boost their profitability. Here are two examples:

• The Electrical Goods Market: This industry might seem entirely price-driven, but an independent study found that only 18% of customers based their purchases on price. The majority were more interested in features and the benefits those features offered. Nearly half (42%) of customers made their choice based on the product’s features and the perceived advantages those features would bring them.
• Hot Chicken Store vs. Chain Franchises: An independent chicken shop found itself struggling against larger chain franchises with more purchasing power, which allowed them to offer lower prices. After a strategic decision to raise prices rather than try to compete, the owner saw an increase in profits. This pricing decision allowed him to focus on differentiating his business, highlighting a customer experience that set him apart from his competitors.

Both examples illustrate the power of shifting focus away from pricing wars and toward creating a unique value proposition.

The Cost of Discounting

Many businesses use discounting as a strategy to boost sales, but the math behind it may surprise you. For example, if your profit margin is 30%, a 10% discount requires an astonishing 50% increase in sales to maintain the same profit. In other words, discounting is often less effective than anticipated and can even harm long-term profitability.

In contrast, increasing prices can enhance profits without major losses in sales volume. At a 30% profit margin, raising prices by 10% means you could afford a 25% decrease in sales volume before profits fall below previous levels. While discounting can make a quick sale, it is rarely a sustainable way to grow profits.

Shifting the Focus to Value and Service

So, what is the alternative to relying on price as the primary marketing tactic?

Focusing on value-driven service, tailored customer experiences, and a unique business identity can be far more powerful. Here is how:

• Better Service, Better Sales: Companies with a focus on “awesome service” give customers a reason to stay, pay a higher price, and return. High-quality service not only leads to immediate sales but also creates long-term loyalty. In fact, studies show that improving customer retention by just 5% can increase profits by as much as 25%.
• Understanding and Meeting Customer Needs: When customers inquire about price, it is usually just the beginning of their decision process. Businesses that can look beyond the price question and explore customers’ needs—such as specific product features, customization options, or delivery requirements—demonstrate an understanding and commitment that resonates with customers.
• Training and Consistency: It is essential to train employees to deliver consistent, high-quality customer service. Programs like “Towards Awesome Service” can empower employees to engage with customers more effectively, creating a culture of service that naturally stands out.

Your Action Plan to Move Beyond Price

By broadening the scope of your business strategy, you can differentiate yourself from competitors who focus solely on pricing. Here are some steps to start:

1. Evaluate and Adjust Pricing Policies: Review your approach to discounts and consider how adjusting prices might impact your bottom line. Avoid excessive discounting, which can erode long-term profitability.
2. Invest in Customer Service Training: Equip your team to offer service that goes beyond customers’ expectations. Programs focused on “awesome service” can be especially beneficial.
3. Ask the Right Questions: Train staff to go beyond quoting a price when interacting with customers. Encourage them to ask about the customer’s specific needs, preferences, and timelines.
4. Consult with a Financial Expert: An accountant or financial advisor can provide insight into effective pricing strategies that support profitability without undercutting value.

In Conclusion

Price, while important, is rarely the most compelling reason customers choose to buy from a particular business. Often, they are looking for a positive experience, a feeling of value, and a sense of connection with the business. By shifting focus away from price and toward quality, service, and a unique customer experience, your business can stand out in ways that drive customer loyalty and profitability—without racing to the bottom on price.

Thanks for reading…