In this video, I talk about these 5 ways to grow a digital business:
- Traffic: Everything starts with traffic because traffic is the lifeblood of any business. Without an effective method to generate traffic, either free or paid, your business is dead in the water.
- Leads: Once you get a steady stream of traffic going to your website or landing page, you need to get leads or inquiries from that traffic.
- Conversions: This is getting the interested prospects to actually pay to buy your product or service.
- Order Value: Order value is the value of your paid product or service. The more you can increase this value that’s spent per customer, the faster you can grow your business.
- Frequency: Don’t overlook the importance of maintaining a good relationship with your existing customers and increasing the frequency that they buy from you again.
Just a quick recap of what we covered last time.
So last time, what we did was, we covered the five ways to predictably grow a digital business.
But this applies to any business, not just digital businesses.
So first of all, you know, it all starts by having traffic.
This is just a recap for those of you who didn’t come last time and you know we talked about the various forms of how to generate traffic last time.
Because without traffic, you don’t have any business.
That’s the lifeblood, right?
It’s like no oxygen.
Your blood can’t operate your body can’t function.
So same with business.
if you don’t have traffic coming in, if you don’t have a strategy to get traffic to your website… to your landing page, then nothing happens.
Okay, so first of all, you need to know how to get traffic.
And we talked about paid ways to get traffic.
We talked about free ways to get traffic in the last round briefly.
So once you have that traffic, the next thing then is you need to convert that traffic into leads or inquiries.
Because you can have all the traffic in the world but if they do not take the next step, then you got a problem because they’re not progressing in the customer journey.
So if you got a million views on your website, yeah, I mean you can go and brag about it but it’s not going to put a single cent into your bank account.
So you need to convert your traffic into leads.
So that’s step two.
And we talked about ways to actually create leads in the last round.
Then the next thing is, once you have those leads, you need to convert your inquiries. Your leads into actually paid customers.
So this is a very important step because if they don’t pay you, basically, you know, you’re not gonna grow your business.
So you need maybe a very good sales letter, a sales page or something that we’re talking
about later to actually get your leads into conversions.
Now, next thing then is to increase… What’s important is to your order value, right?
So imagine if you wanted to reach 1 million dollars in sales a year in your business, right?
You can either sell 10 items worth $100,000 each or you can sell 1,000 items worth $1,000 each
So, the order value is very important.
So the more you’re able to increase what you charge, the faster you are able to grow your business, that is really common sense, right?
So we’ll talk about strategies as to how we can increase the order value in this session as well.
And finally, the way to grow your business is to increase your frequency of purchase.
So, you know, people always think, okay, I need to go and get more customers, but they don’t think “How can I make my existing customers come back again and spend more money repeatedly with me?”
So we’ll go into some of the strategies today as to how to increase the frequency of purchases as well.
So we’re not going to cover traffic and leads because we covered that last time and we don’t have time to really go into that segment again.
Alright, so let’s get into it.
And just for your conceptual purposes, we also talked about the typical example here, right?
Which is right how it works, right?
Okay, so we talked about that.
So it’s all about this 5 KPIs.
If you get this 5 KPIs right, you’ll be able to grow your business and make sure each one of these KPIs you’re constantly tweaking, and constantly optimizing.
So, you’re constantly increasing the growth of your business that way.
Okay, so we talked about, you know, how to if we increase it by 10% on each area.
Logically, if you just increased by 10% on each area, do you just increase your business by 10%?
No, because there is what we call the compounding effect, right?
So we actually increase our business by 61% because there’s that compounding effect when you increase each area by 10%, right.
Now we also talked about okay, what if we increase each area by 50%, right, and that’s an increase of 659%.
Basically you’re increasing your business by 7.5 times if you increase each of these 5 areas just by 50%, okay?
So, the compounding effect is pretty incredible.
So, you know, when you think about growing your business, it’s not like oh yeah, I want to grow 7 times so I need to increase each area by 7 times.
I need to increase my leads by 7 times. I need to increase my traffic by 7 times.
No, you don’t.
All you have to do is to increase each area by 50%.
You see a 7.5 times increase in your sales, in your business, okay?
Okay, so that’s the compounding effect and many people don’t understand this, right?
And they just focus on one area, like, okay, I just need to pump more traffic into my business, right?
And they just focus on that and spend a whole ton of money.
So, if I increase my traffic by 7 times yet, which is fine.
You could do that.
But why not just increase each area by 50% which is much easier, much less costly and you can get the same result, right?
So that’s why this scientific way to grow your business is so important and many people in business do not understand this.
So you by being here today, congratulations, you at least understand this concept, right?