Today’s Throwback Thursday post returns from August 2014.
You can grow your internet business by learning from learning from some of the biggest, best marketers in America. Let’s focus on three of them: Starbucks, McDonald’s, and Amazon.
They all use this and you can too!
What they understand is that to grow a business you need to…
1. Grow your number of customers (of course) …
There are 240 Starbucks cafes in Manhattan, compared to 161 Dunkin Donuts locations. Who do you think sells more? McDonald’s has 74 restaurants in Manhattan. More locations means more customers. What can you do to grow your customer base?
More customers will always grow your bottom line, but that isn’t the end of the sales process. The reason that this isn’t the end of the sales process is that you can create more profits by increasing sales from your customer base.
2. Increase the value of the sales per customer (e.g. “Would you like fries with that?).
McDonalds and Amazon are great at this. McDonald’s “Would you like fries with that?” is classic. Amazon uses “Recommendations for items across our store,” “Recommended for you based on your (whatever item you are purchasing),”Bargain recommendations,” “Sponsored products related to this item,” “Frequently bought together,” and “Customers who bought this item also bought…” You can come up with your own, based on what you are selling.
3. Increase the number of sales per customer.
That makes sense, doesn’t it? Repeat customers are what will really build your revenue. Think about it – you have no customer acquisition cost – you’ve already done that. Your profit margin is higher from repeat customers because you have no customer acquisition cost.
Consider this: 40% of an ecommerce store’s revenue is created by only 8% of its customers. What are you doing to encourage your customers to become repeat customers?
If you can do those three things, you will be building a great business. So, how do you do those three things?
Once you’ve chosen a strong niche, it’s time to drive traffic and connect buyers with your product or products. Traffic is the key, so as I have said many times, build your list! Building your list is how you will increase your sales, increase the value of your sales per customer, and increase the number of sales per customer. Makes sense, doesn’t it?
The retail giants advertise big time to generate new sales and retain customers. They want to be first in the minds of consumers. When a consumer thinks about coffee Starbucks wants them to think about Starbucks, or hamburgers and McDonald’s, or books (and so much more) and Amazon. Your emails should have a similar effect on your subscribers.
Your emails can establish you as an authority in your field, or they can be perceived as spam. It all depends on how much value you deliver in them. Write good, helpful content and you can connect with your subscribers. Write dreck and your emails will end up in their spam folder or they’ll unsubscribe from your list. The giants are very quality-driven and you need to adopt the same attitude about your work.
Connect with your list and your list will become your source of customers and repeat customers. That’s it. That’s the magic formula of the giants applied to internet marketing.
So, learn from the giants, apply your learning to your business, and grow baby, grow!
I invite your comments and questions and your likes and shares.