digital kit – how to maximize your business revenue · 2020-04-25 · digitalkit.org how to...
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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.
Digital Kit by LEAD www.thelead.io
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.
Digital Kit by LEAD www.thelead.io
What business are you in? • Service-based • Product-based • Platform-based • Affiliate based?
DigitalKit.org How to Maximize Your Business Revenue
Back when we started.
• Speaking • Classes • Courses • E-books • Affiliates
DigitalKit.org How to Maximize Your Business Revenue
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.
DigitalKit.org How to Maximize Your Business Revenue
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.
DigitalKit.org How to Maximize Your Business Revenue
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.
DigitalKit.org How to Maximize Your Business Revenue
Take 1 year, do you think you can
Increase AOV by 20%
Increase purchase frequency by 25%
Increase total of clients by 30%?
DigitalKit.org How to Maximize Your Business Revenue
Alright, let’s talk growth.
How do you increase revenue?You run a Lemonade stand.
DigitalKit.org How to Maximize Your Business Revenue
Web Developer
Clients: 10
AOV: RM5,000 per project
Frequency: 1 project per year
Total annual revenue: RM50,000
Case Example
DigitalKit.org How to Maximize Your Business Revenue
Web Developer
Clients: 10
AOV: RM5,000 per project
Frequency: 1 project per year
Total annual revenue: RM50,000
What happens if he increases each by 30%?
Clients: 13
30% increase
AOV: RM6,500 per project
Frequency: 1.3 projects per year
Total annual revenue: RM84,500
DigitalKit.org How to Maximize Your Business Revenue
DigitalKit.org How to Maximize Your Business Revenue
Increase Average Order ValueTactic #1
DigitalKit.org How to Maximize Your Business Revenue
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
DigitalKit.org How to Maximize Your Business Revenue
Most of the time, we are not profitable with acquisition.
DigitalKit.org How to Maximize Your Business Revenue
An example of what we do at LEAD.
Webinar (Free Stuff )
Workshop (RM179)
Complete Program (RM3,899)
DigitalKit.org How to Maximize Your Business Revenue
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.
DigitalKit.org How to Maximize Your Business Revenue
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.
DigitalKit.org How to Maximize Your Business Revenue
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?
DigitalKit.org How to Maximize Your Business Revenue
Even if only 10% of her clients convert to a RM6,000 upsell.Her AOV increased by 20%
DigitalKit.org How to Maximize Your Business Revenue
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.
DigitalKit.org How to Maximize Your Business Revenue
That’s why you see 3-tiered pricing used everywhere.
DigitalKit.org How to Maximize Your Business Revenue
DigitalKit.org How to Maximize Your Business Revenue
Maximize purchase frequency.
Tactic #2
Which one do you feel is harder? AOV or purchase frequency?
DigitalKit.org How to Maximize Your Business Revenue
You’ve spent money, time, effort to recruit customers and just letting them go?No matter how you think about it. That’s crazy.
DigitalKit.org How to Maximize Your Business Revenue
I never knew I needed the extra services, until she educated me on it.
Remember the wedding planner?
DigitalKit.org How to Maximize Your Business Revenue
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
DigitalKit.org How to Maximize Your Business Revenue
What is your client’s recurring need?
Most businesses can implement a recurring revenue.
DigitalKit.org How to Maximize Your Business Revenue
Either fulfil it, or partner with someone who can
Every client has a recurring need.
DigitalKit.org How to Maximize Your Business Revenue
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.
DigitalKit.org How to Maximize Your Business Revenue
Sendfox.Use an email system to reach out.
https://appsumo.com/r/eg0l7mu/
DigitalKit.org How to Maximize Your Business Revenue
Growth multiplier formula.
Leads X Customers Margin Frequency Growth PotentialX X =
DigitalKit.org How to Maximize Your Business Revenue
• 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
Digital Kit by LEAD www.thelead.io
Thanks. Next week, we’re bringing you social media lessons.
How To Maximize Your Business Revenue