Smart marketers and entrepreneurs know that there are 3 basic ways to grow your business:
- Increase the number of buyers
- Increase the transaction value
- Increase the number of transactions per customer
In other words, every one of your sales funnels should be designed to…
Get you more buyers…
Get your customers to open their wallets wider…
Get them coming back for more….
A sales funnel designed to optimize these 3 variables is a funnel designed maximise your total profits. Which is the ultimate goal of any business, right?
Ideally you will look to increase all three of these Magic Growth Variables…..
But in practice your focus will differ depending on your product and market forces. For example, if your market is small, a strategy that focuses purely on increasing the number of buyers will soon run out of steam.
So when you’re building your funnel, you need to ask yourself the following kinds of questions to decide where to place you focus:
How big is your market?
(larger market = more emphasis on variable 1 – increasing number of buyers)
What is your average customer’s budget?
(larger budget = more emphasis on variable 2 – increasing transaction value)
How large is your product portfolio?
(A larger portfolio = more emphasis on variable 3 – increasing number of transactions per customer)
So now you know the key variables that you’re seeking to increase for your business – and the forces that focus your funnel. You’re able to “see the forest”, your higher business goals.
The next step is to learn the psychological principles that will help you to achieve these goals.
This will allow you to understand the journey that you need to take each customer through in order to maximise each of the “3 Magic Growth Variables”.