Making meaningful progress on growing your business, particularly in these trying economic times, requires that you go about it strategically. We already touched on this in our post What’s Your 2021 Business Growth Plan?, and now we want to get more specific about how reconceptualizing your marketing system can help you attain new levels of growth going forward.
In our experience, there are four basic components, or “levers” to pull, for every business that are useful to think about when trying to grow in the online environment.
Start with the basics : 4 Levers of Business Growth
These are the number of inbound individuals that are aware of your business and may become a customer
These are the leads that you have successfully convinced to make a purchase.
These are the profits you make on each purchase that is made.
Frequency of purchase
This is the rate at which each of your existing customers makes a purchase from you.
The reason we use the word “levers” is because these work together as a machine. Each input feeds into the others, and moving one lever can increase the overall effectiveness of the entire system.
Levering Up for Compound Growth
So, let’s say that you’re able to double the number of leads coming to your website, but also double your conversion rate — that means you’ll actually see your revenue quadruple. Adding in the other two levers further amplifies the effect. Ultimately, if you were able to find a way to double each of the 4 inputs above, you’d be looking at 16x your current revenues.
Most businesses would consider that to be a staggering level of growth. The benefit of the four lever approach is that it breaks down something that otherwise seems completely unattainable into more manageable goals. Most business owners would not be able to tell you offhand how to increase revenues, but if we isolate the task of getting twice as many leads to visit your website, the project becomes much less intimidating.
Of course, the doubling of every lever for 16x growth is just an example of what can be achieved.
In reality, you may find that it’s easier to move one lever than another one. For example, you may find that you can easily get more leads back to your site, but that your margins are about as good as they’re going to get. That’s OK — every business has different strengths, and you can still achieve spectacular growth by playing on your strengths.
Getting Started, and Getting Help Where You Need It
How do you put this system into action? It’s important to first spend time thinking about the efficacy of your system as a whole, but then, choose one lever, perhaps the one you think would be easiest to move, and work on it until you’re happy with your progress. Then, move to another one.
But another benefit of breaking down your marketing machine into these four levers is that it makes it much easier to get help if you don’t know how to go about doing something. You can approach third parties with specific requests, such as tweaking your website to increase conversions, rather than with a vague goal of growing revenues.
Ready to get started? Reach out to us today to put this system into action for your business and get on a concrete path to revenue growth.