Marketing legend, Jay Abraham, says there are ONLY three ways to grow a business:
- Increasing the number of customers
- Increasing The Average Order Frequency (AOF)
- Increasing The Average Order Value (AOV)
Let’s explore that for a moment…
1) Increase Customers
Of all the activities a business will engage in, acquiring customers has the greatest cost attached to it. The process of getting a paying customer starts with finding the right prospects, getting them to become a lead, and then eventually converting leads into paying customers.
In essence, this is what a sales funnel is . Your job as a business owner is to create awareness of your products and services and then turn that awareness into leads and sales.
It can be a long and sometimes complicated process and involves a mix of content, paid, referral, social media and email marketing. As I said before, the most amount of money is spent in acquiring a customer.
However, this creates a problem – one that you might be familiar with….
Unfortunately, there’s the assumption that doubling the traffic to your website will automatically double your sales – and that’s not true!
This is flawed thinking and can mean thousands of pounds in wasted ad spend.
Because increasing customers is where the most amount of effort, energy and money is spent, it’s therefore CRITICAL you market to the right people ALL the time. We’ll get to this in a moment.
2) Increasing the Average Order Frequency (AOF)
The average order frequency (AOF) simply means the number of times your customers bought from you in any given period.
Getting customers to repeatedly buy from you requires a mixture of having the right offerings that are of value to your ideal customer and then staying in front of them through various means of marketing.
3) Increasing the Average Order Value (AOV)
The average order value (AOV) is simply the average total of every order a customer places with you over a defined period of time. AOV is an important metric for online businesses because it drives key decisions such as advertising spend and product pricing.
Whatever challenges you have with growing your business, I can guarantee it will almost always fall into one of these 3 categories…
But here’s the thing…
The cost of acquiring new customers is not only one of the biggest costs you’ll ever have in your business, it’s also one of the MAJOR reasons why businesses go bust.
This is because finding new audiences is a costly process… and this can create massive cash flow problems which can land you in a LOT of trouble.
But, there’s a fundamental truth in truly being able to make the kind of money you’ve always dreamed of, which very few people actually talk about, and one which I believe supersedes the 3 principles of growth as mentioned by Jay Abraham:
ALL three of these factors are fully DEPENDENT on how well you understand your customers. PERIOD.
You’ve probably heard the term ‘ideal customer’ many times before… but did you know there’s a direct positive correlation between businesses who know and understand their ideal customer really well and the amount of money they make?
For most business owners, their primary focus is naturally on selling more of their products and services. This usually means increasing the number of customers, selling them more goods and getting them to come back more often.
I believe, however, that if you understand your ideal client and really drill down into their psychology, you’ll scale your business while often driving DOWN the cost of your marketing in the process…
And that’s exactly what my book ‘Mind-Hack™ Marketing – How To Turn Customer Psychology Into Breakthrough Sales’ is all about!
Mind-Hack™ Marketing is based on more than a decade of my experience working with expert brands to help them radically scale and convert more clicks into clients.
I used the principles inside this book to get one of our clients an insane 14x ROAS (return on ad spend) from his funnel.
Check it out here: https://mindhackmarketing.io/
Or check out a FREE CHAPTER
