Thursday, June 18, 2009
Are you looking for an unforgettable experience that will guarantee the loyalty of your existing clients so they stay with you for longer and refer more business to you?
Or are you still at the stage in your business when you need more leads and better conversions or more sales per customer?
Perhaps you have all the customers you can handle - would you like to increase your average dollar sale or reduce your costs?
Did you know that if you increase each of those factors by just 10% then you will increase your profits by more than 60%?
With more and more businesses going to the wall; what would it mean for your business right now to increase your profits by more than 60%?
Strategic alliances are the easiest and most cost effective way for small business owners to achieve massive increases across all of these factors.
Let’s look at a few examples.
Increase leads
By providing an irresistible offer to the clients of a business owner who shares your target market you are able to guarantee a steady stream of new leads into your business. Think about the case of the dentist and the massage therapist.
Improve conversions.
Are you currently discounting to improve conversions – why not add value instead. A deal with another business who shares your target market and is able to provide a low cost complementary product is a much better arrangement than discounting on your primary product or service and creates a WIN WIN.
Increase average dollar sale.
Remember the case study of the book store and the jeweller. A promotional campaign with an alliance partner is a fantastic way to increase average dollar sale and you don’t have to stop at one promotion.
Increase number of sales per customer.
What can get your customers coming back more often? Remember the case of the wine bar and the gourmet deli who ran wine and cheese tasting courses – this created a whole new income stream as well as increasing the number of times customers bought from both suppliers. Or think about the dentist whose client’s came back in droves for their check ups when the massage with champagne and chocolates was on offer.
Reduce costs
It could just be that by increasing the number of sales that you are able to your costs by increased buying power. But let’s not count on that. Think about creating joint marketing strategies, sharing office or storage space, sharing reception staff. Plus there can be an additional upside. I was speaking to a lawyer last night who sub-leases an office to an accountant. Not only are rent costs down but the accountant now regularly refers clients to the lawyer – after all he is just down the hallway.
What are you waiting for – remember just a 10% improvement in each area means more than 60% increase on your bottom line. To learn how you can use strategic alliances to grow your business check out the
Strategic Alliance Success Club.
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