Our final Throwback Thursday post of 2016 returns from August 2014 and discusses three business practices that are a perfect blueprint for any great business.
You can grow your internet business by learning from Starbucks, McDonald’s, and Amazon. They all follow the same path to success and you too can use this path to find success for your business.
What they understand is that to grow a business you need to do three things. If you can do these three things, your business will grow and you will be profitable.
1. Grow your number of customers (of course) …
This is most basic and it can be the hardest to do. You can build your email list and not make any sales. You can build a great a website and not make any sales. The bottom line is always the bottom line – are you making enough sales to be profitable?
If you’ve ever looked at ANYTHING on Amazon, you will see on the first page of Amazon, sections like “Related to items you’ve viewed.” There will likely be a “New for you” section of Amazon’s home page, and “More top picks for you” based on your browsing history.
Everything on that first page of Amazon is designed to turn you into a customer, and if you’ve never purchased anything from Amazon, the different sections of the page will be based on your browsing history with them.
Don’t have a zillion things to sell like Amazon does? This means that your customer acquisition will be different, but you can still learn from this giant. Find the right target audience for what you’re selling and create the right appeal that will turn them into buyers.
2. Increase the value of the sales per customer (The “Would you like fries with that?” formula).
Once you’ve made a sale, do you do all that you can do to increase the value of that sale through upsales and downsales? McDonald’s does it. Amazon tries to do it. When you purchase something from Amazon, you’ll be taken to a page that includes a section titled “Customers Who Bought This Item Also Bought” and there will be a number of possibilities related to your purchase.
If you’ve ever bought a Kindle book from them, you’ll see “Recommended for you in Kindle Books.” If you’ve ever bought a book from Amazon, you’ll see “Recommended for you in Books.” Amazon is intent on increasing the amount of each sale they make; you should be too.
3. Increase the number of sales per customer.
That makes sense, doesn’t it? Repeat customers mean that you don’t have to go to all the expense of finding new customers. They’ve bought from you, they were satisfied, and when you’ve established the trust that it takes to make one purchase, they are more likely to buy from you again.
One of the ways that Starbucks encourages this is through their Starbucks Rewards Card. In the early days, one of the ways that Amazon encouraged customer loyalty was through freebies. I still use an Amazon coffee tumbler that I received from them a number of years ago.
Just Three Things
If you can do those three things, you will be build a great business. So, how do you do those three things well? Figure that out and you are well on your way to creating a profitable business. It’s not rocket science, but these three practices will make or break your business.
Once you’ve chosen a strong niche and either created your own products or made arrangements to sell the products of others, it’s time to drive traffic and connect buyers with your product, products or services.
Traffic is the key; as I have said many times, generate lots of traffic and build your list – these are the keys to building a sales base! Growing your list is the most cost efficient means to increase your sales. Use the tactics of the big boys and girls to Increase the value of your sales per customer, and increase the number of sales per customer. Do all this and you can’t not be profitable.
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. When you think hamburgers, McDonald’s wants to be first in your mind. When you think books (and so much more), Amazon wants you to think of them. Your ads and emails can have a similar effect on your subscribers.
Your blog and emails can establish you as an authority in your field, or they can be perceived as garbage and spam. It all depends on how much value you deliver through them. Write good, helpful content and you can connect with your audience and subscribers. Write dreck and people will stop reading your blog 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 blog audience and your list and your blog readers and email subscribers will become a regular stream 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!
As always, I welcome your comments and questions, and your likes and shares.