I was working with my personal trainer the other day who came to me with a problem:
“How can I grow my client base?”
One of the principles I learnt very early on in my career was that the first question that someone asks you is rarely the real question they want answered. What he really wanted to know was “how can I make more money?”.
While this question obviously has a lot more depth behind it, for the purpose of this blog I will tell what I told him.
“There are only 3 ways that you can increase your revenue.
1. Increase the number of clients you work with
2. Increase the revenue per transaction per client
3. Increase the frequency that they purchase”
That’s it. Now, the secret to this answer is this. Each principle can be ranked according to how easy it is to achieve.
Increase revenue per transaction per client.
This is by far the easiest principle to implement. You set out an up front “contract” of the service that you will deliver against how much it will cost the client to achieve that result. Once you have a client in your system they develop loyalty to you (if you are genuinely providing an outstanding service) and will stay with you even if your fees increase.
Increase the frequency that they purchase
If clients working with you they are predisposed to give you money for your services. Why not – they are already doing it so there is already implicit trust established and bonding the two of you. As their trusted advisor, coach, mentor, trainer if you recommend something they are much more likely to purchase this based on the trust that they already have in you.
Increase the number of new clients that you work with
By far the “hardest” of the three as you are going out into the marketplace to attract new clients to you. This is where most marketers spend most of their time looking at new ways to reach a niche with the latest technologies. When marketed exceptionally the results are very high, executed good to average the results are average at best. Competition is too intense to be anything less than exceptional – long gone are the days when just about any form of marketing and advertising worked.
Assess what principle you are currently using. Assess what principle the best in your industry are using. I guarantee this. Most of the top names in most industries communicate more to their own customers than they do trying to attract new customers.
Why? Because they recognise the power of word of mouth and viral information in our world which is more powerful than any marketing message that they can craft that might meet some of the wants and needs of new customers.