Are you committing any of these 9 business sins? If so, you could be clueless to the millions you’re flushing daily.
Let’s take a look at 9 ways businesses are wasting opportunities and money on a daily basis. Then we’ll go over a method you can use to plug the leaks to increase your leads, revenues and profits.
- You don’t know your numbers – If you’re not tracking your numbers along the process from generating leads, to closing clients you’re leaving money on the table.It may sound counter intuitive, but the competitor who will win is the one who can spend the most to gain a customer. If you know exactly how much you stand to profit from your average client, you also know what you’re willing to spend to bring in that client.
- You don’t know your clients – When you really know and understand your clients, you can draw a picture of your target customer from head to toe. You’ll be able to describe where she works, shops and what TV shows she watches.If you just read this and said, “This one isn’t for me, I’m at a B2B company”, you’re wrong. Companies don’t do business. People at companies do business. Once you can identify who the people are that are most likely to work with you (and get the most out of working with you), you can reach out to them and make them your clients.
- Ignoring micro-conversions – Macro-conversions are the larger wins like purchases, registrations & email signups. However, there are often several micro-conversions that lead to each larger macro-conversion.For an online business, when someone makes a purchase, they often have to find the page featuring the item they want to buy, add it to their cart, and then complete the checkout process. If you can optimize the micro-conversions along the path to the final purchase, you can increase the revenue generated from the same amount of traffic.
- Neglecting current clients – Often your current customers aren’t aware of all of your products or services. They come to you for one thing, but go in search of other companies for other services they don’t know you also provide.Additionally, showing new ways to use your current products can increase your clients’ frequency of purchasing from you.
- No backend offer – Once people have purchased from you once, they are much more likely to purchase from you again (as long as you did a reasonably good job the first time).What else can you offer to those who have made the decision to do business with you?
- No systematized referral program – Clients that come to you via referrals are generally easier to close, less likely to be price sensitive, and are overall better customers because they appreciate you already.It’s likely that quite a few of your current clients come from referrals, but do you have a system that predictably makes referrals happen?
- Wasting time with the wrong prospects & clients – For most successful executives, time is the hardest commodity to come by. You’re always busy, but the Pareto Principle suggests that 20% of your clients are generating 80% of your revenue.Getting rid of that bottom 80% (or at least the bottom 20%) and adding more of the top 20% will bring you more time and more money.Another exciting fact is that the clients that are the most hassle tend to fall in that bottom percentage.
- Your price is too low – Do your prices cater to a below average client? We often let our product’s price be stunted by bottom dwellers that undervalue the product or service.If you instead start focusing on the clients with the highest value for what you offer, a price hike is much less risky.A good rule of thumb is if 20% of prospects you encounter aren’t appalled at how high your price is, it’s too low.Tip: Give current clients a heads up on the date you’ll be raising your price and allow them to stock up before the rate hike.
- Leaving lead sources untapped – A lack of some resource is preventing you from fully exploring avenues that could generate additional revenue. It’s a catch 22, because as soon as you can monetize that additional offer, product, or advertising channel you’ll have the resources to capitalize on it.Identify the resource. Is there someone you can buy/sell/trade with to get what you need?
Are you committing any of these 9 business sins?
If you find yourself doing any of the 9 things listed above, you’re likely hemorrhaging money. Stop right now and take this opportunity to plug the leak.
Write down the areas where you need to strengthen your systems and then prioritize based on the amount of leakage.
For each sin, brainstorm about the one thing you can do to create massive change in that area, and assign a date within the next 4 weeks when you’ll take action.
You may be inclined to create a list of 20 things you can do. Don’t.
Focus only on the one thing you can do to create the most immediate impact. You’ll be more likely to start and finish one task, rather than being intimidated by a long list.
From there keep taking steps forward by re-prioritizing and using discipline to attack the next one area that will have the largest impact.
Don’t feel you have to do everything yourself, one of the most efficient steps may be in bringing in someone else more qualified to wash away your sins. [Allusion anyone?]
PS: If you haven’t invested in proper SEO, #9 is stealing money right out of your pocket. You’re leaving a large traffic source untapped and likely missing epic growth opportunities.
PPS: Often an even better option than SEO is PPL, which stands for Pay Per Lead. Most of our SEO clients have recently transferred over to paying per lead, because you only pay when you see results. Interested? Hit our discovery form and let us know a little about your business and goals.