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:
- Determine your number of active customers.
- Calculate your total number of sales invoices over a specific period (e.g., annually).
- 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Even worse, existing customers are often stuck in outdated, expensive plans.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!