How can you know what to focus on in your business in order to produce the greatest new growth?
It can be hard to decide where to invest your limited resources with so many options available to you. As a result, we easily end up overwhelmed, spread too thin, or focused on the wrong areas.
The best way to make your growth strategy clearer, more focused, and more effective is to first realize that there are only three ways to grow your revenue and deliver greater value to your audience: attract more leads, convert more leads, or boost lifetime customer value.
There is a myriad of tactics and strategies you can adopt, but all of them fall into one of these three areas. It’s important to first know which of these three is most important at a given moment based on the stage your business is in and your current goals.
Let’s take a closer look at these three areas and when it’s best to prioritize each one.
1) Attract More Leads
Typically this means building your email list of prospective customers and loyal audience members.
We often think of branding and visibility for growing our business, but these are only effective if they start people on a customer journey with your brand (i.e. they become a targeted lead). This is the first place to focus on a new business that doesn’t yet have a steady flow of leads.
Attracting more leads consists of launching new content marketing channels, putting into place paid ad campaigns, organic SEO, and PR to name a few.
2) Convert More Leads
This consists of building out your customer journey by optimizing your messaging, offers, pricing, and sales workflow in order to turn more prospects into customers.
Examples might include building or optimizing your sales funnel(s) or adding new sales channels such as webinars, sales calls, product launches, and email sequences.
This is a great place to focus once you have a consistent flow of leads coming in and even a small email list that you engage with regularly.
3) Boost Customer Lifetime Value
This typically means creating and selling additional products or services to existing customers. This grows the amount of money they spend with your business as well as the value you deliver to them during their “lifetime” as a customer. It also consists of adding “upsell add-ons” to current offers to increase the average value of each order.
For an existing business with consistent income and a growing list of existing customers, this is typically the first place to focus to grow your income the fastest because those who have already done business with you are much more likely to do business with you again. (And many businesses overlook this).