Digital Kit – How To Maximize Your Business Revenue · 2020-04-25 · DigitalKit.org How to...

DigitalKit.org How to Maximize Your Business Revenue

How To Maximize Your Business RevenueAnd start implementing it this weekend.

Digital Kit by LEAD www.thelead.io

Today’s quick-fire training session.

1. Introduction (In the chat & do join the Telegram group)

2. Look at ways to increase revenue. 3. Case studies & implementation ideas.

4. Q&A and next things.


Hey it’s Reuben Ch’ng• Head of Marketing at LEAD. • Owner & co-founder of Cat Studio. • Founder at Cat Insights Marketing Agency. • HRDF certified trainer. • Growth marketer & entrepreneur. • Music producer on the side.


What business are you in? • Service-based • Product-based • Platform-based • Affiliate based?


Back when we started.

• Speaking • Classes • Courses • E-books • Affiliates


Nothing really worked, until we did some shifts.

1. Going from low-ticket products to high-end courses.

2. Going from intake basis – to ‘always-open’ model.


What I’ve learnt.

• It’s possible to 2X your business without 2X the work.

• The best way is to deconstruct your revenue model and target big, impactful wins.


There are three ways to multiply your revenue

Increase # of customersIncrease AOV (Average Order Value)Increase Frequency

xImproving one of them is good. But all three combined, gives you a multiply effect.


Take 1 year, do you think you can

Increase AOV by 20%

Increase purchase frequency by 25%

Increase total of clients by 30%?


Alright, let’s talk growth.

How do you increase revenue?You run a Lemonade stand.


Web Developer

Clients: 10

AOV: RM5,000 per project

Frequency: 1 project per year

Total annual revenue: RM50,000

Case Example


Web Developer

Clients: 10


Frequency: 1 project per year


What happens if he increases each by 30%?

Clients: 13

30% increase


Frequency: 1.3 projects per year



Increase Average Order ValueTactic #1


Always perfect what you’re doing with your existing customers first.Fact: Many companies actually make most revenue in the backend.

Your customers are with you. Why waste that opportunity?

Free RM179 RM3599Retainer/

Membership

RM499


Most of the time, we are not profitable with acquisition.


An example of what we do at LEAD.

Webinar (Free Stuff )

Workshop (RM179)

Complete Program (RM3,899)


But I don’t want you to look at it as a ‘funnel’. Sales funnels are selfish.Rather, think about how you can add value to enhance you customer’s purchase.

• Test an increase price with few clients. Don’t be discouraged if they say no.

• Your price is the price. If they want a lower price, reduce the value accordingly.


Be sure to incorporate upsells.Also known as the ‘second-sale’

Two ways to do this:

• Upsell at point-of-sale. • And after project, service completion.


Wedding PlannerLet’s assume that her current AOV is RM6,000

Example business.

• Physical decor done-for-you.

• Event management.

• Emcee for the day.

• Make all the necessary calls for you.

• Photos during the day itself.

What else would a client be happy to pay for?


Even if only 10% of her clients convert to a RM6,000 upsell.Her AOV increased by 20%


A good story of why providing options is effective in helping people decide what’s right for them.

Goldilocks stumbled into the home of three bears.

The first, bowl of porridge is too hot!

The second, bowl of porridge is too cold.

The third bowl of porridge is just nice.

Without context – nothing is too expensive or affordable for clients.


That’s why you see 3-tiered pricing used everywhere.


Maximize purchase frequency.

Tactic #2

Which one do you feel is harder? AOV or purchase frequency?


You’ve spent money, time, effort to recruit customers and just letting them go?No matter how you think about it. That’s crazy.


I never knew I needed the extra services, until she educated me on it.

Remember the wedding planner?


Setting up a retainer model.So how can you continue getting customers to pay you?

Web DeveloperCharge RM10,000 for a project + RM500 monthly maintenance.

Personal TrainerCharge RM3,500 for PT + RM250 customised meal plans.

SaaS BusinessCharge RM500 set up + RM80 per month usage fee


What is your client’s recurring need?

Most businesses can implement a recurring revenue.


Either fulfil it, or partner with someone who can

Every client has a recurring need.


Reach out to them.1. Call/Email your past clients up. (Do this on a systematic basis, with email systems.)– Reach out to them quarterly at minimum. – Industry news & current events. – Reactivate them with customer success stories. – Followups, questions and surveys. – Special discounts (but don’t over do it)

Your past clients are a goldmine.

2. Facebook retarget them. - Speak to them using Facebook Ads. - Upload your customer list and set up ads.


Sendfox.Use an email system to reach out.

https://appsumo.com/r/eg0l7mu/


Growth multiplier formula.

Leads X Customers Margin Frequency Growth PotentialX X =


• Break down your revenue model – target the big ticket.

• Leverage your 3 revenue multipliers.

• AOV: Increase price, optimize fee structure, upsell.

• Purchase frequency: Add retainers, reactivate old clients.

Key-takeaways


Thanks. Next week, we’re bringing you social media lessons.

How To Maximize Your Business Revenue

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