Contents & Summary
This eye-opening analysis shows how businesses can dramatically increase profits by implementing four key strategies.
We thank business coach Wes Hone – this article is adapted from some of his content.
Wes states:
“Remember the purpose of profits? It’s so that you can pay tax and be a good corporate citizen.
But better than that, it’s so that you can invest into the future or use that money to scale up the business, right? I’m assuming that your wage has come out before profit. That’s the proper way to run a business. So your profit is left after tax to store some and then to put some money back into the business so that you can scale.
But how do you drive profitability? Well, there’s a thousand little levers, right? There are a thousand little decisions that you can use to drive profitability in your business. But there are four primary drivers that make a significant difference to the profitability of your business.” (Source: Wes Hone Youtube Channel).
So in this article, we’ll examine how to:
- Create a robust lead generation system using multiple marketing channels
- Boost sales conversion rates through proven techniques
- Build customer loyalty programs that work
- Increase average transaction values systematically
The strategies outlined here helped one retail business boost their average sale by 11.8% in just 10 weeks. Another company saw their customer retention rate climb to 85% through an innovative loyalty program
Smart business growth comes from understanding and mastering the core elements of profitability. As your accountants, we see countless financial statements, and the most successful businesses consistently apply these proven methods to boost their financial performance.
1. Strategic Lead Flow: Your Business Foundation
A steady stream of new prospects makes the difference between a thriving business and one that struggles month to month. Most small businesses rely too heavily on referrals, creating unnecessary risk.Building Multiple Marketing Channels
Your business needs at least 10 different ways to attract customers. Our most successful clients use these proven methods:- Search engine marketing
- Social media advertising
- Website ranking improvements
- Professional networking
- Business partnerships
- Direct customer outreach
- Client recommendation systems1
Measuring Marketing Success
Success comes from tracking your results precisely. Create clear connections between:- Marketing spend
- Number of new contacts
- Sales achieved
- Revenue generated
Smart Investment Approach
While marketing requires initial capital, consider it an investment rather than an expense. Our data shows businesses that maintain consistent marketing budgets see more stable growth patterns. Start with one channel, perfect it, then expand systematically.Testing and Refinement
Track every marketing activity meticulously:- Monitor cost per lead
- Calculate return on investment
- Assess conversion timeline
- Document customer acquisition costs1
2. Sales Process Refinement: Converting More Prospects
Most businesses miss significant opportunities by not focusing on their sales conversion rate. While many claim high success rates, the real numbers tell a different story. Let’s examine how to boost your true conversion rate without spending substantial capital.Understanding Your Real Numbers
Your actual conversion rate includes all potential customer contacts – not just the warm leads. Calculate this by:- Tracking every initial phone enquiry
- Recording networking contact outcomes
- Monitoring all website form submissions
- Including trade show connections
- Documenting social media responses
Success comes from structured approaches:
- Creating well-crafted questions
- Building authentic connections
- Managing common concerns
- Following proven processes
- Using tested scripts
Create a Value-Based Sales Process
Your sales approach needs distinction from competitors through:- Clear communication of benefits
- Structured presentation methods
- Strategic pricing options
- Solution-focused discussions
- Expert problem-solving
Building Customer Trust
Success comes from:- Active listening techniques
- Clear communication methods
- Professional presentation skills
- Consistent follow-up systems
- Strong relationship building
Follow-Up Excellence
The sale starts after sending the quote:- Create systematic and automated follow-up schedules
- Use multiple contact methods
- Track all communication attempts
- Document customer responses
- Maintain professional persistence
3. Customer Retention Strategy: Building Lasting Business Relationships
Most companies focus on finding new customers while missing opportunities with their current client base. Building strong connections with existing clients creates stable, long-term growth.Understanding True Customer Value
Your current customers offer significant advantages:- Lower acquisition costs
- Higher trust levels
- Better understanding of your service
- Increased likelihood to recommend others
- Greater potential for larger purchases
Creating Community Connections
Success comes from building genuine relationships through: Private Client Events- Exclusive previews of new services
- Educational sessions
- Networking opportunities
- Recognition events
- Expert presentations
Communication Excellence
Keep customers engaged through:- Monthly value updates
- Professional newsletters
- Personal contact notes
- Special occasion recognition
- Priority booking systems
Practical Loyalty Programmes
Consider these proven methods:- Service-based rewards
- Early access benefits
- Priority scheduling
- Special rates for regular clients
- Recognition programmes
Real-World Success Example
A plumbing business created a “Royal Client Programme” offering:- Priority scheduling for members
- Small discounts on future work
- Special contact numbers
- Regular maintenance tips
- Exclusive service guarantees
Building Digital Communities
Create online spaces where clients can:- Share experiences
- Access exclusive content
- Connect with other customers
- Receive special offers
- Get priority support
4. Transaction Value Optimisation: Growing Your Average Sale
Smart business growth comes from increasing the value of each sale. Let’s examine proven methods to boost your average transaction size without making customers feel pressured.Understanding Your Current Position
Calculate your present average sale value:- Add all sales for the past quarter
- Divide by total number of transactions
- This number becomes your baseline
- Set realistic growth targets (start with 10%)
Strategic Bundling
Create packages that make sense:- Tax return plus business advisory
- Monthly accounting plus cash flow forecasting
- BAS lodgement plus bookkeeping review
- Annual compliance plus tax planning
Premium Service Tiers
Structure your offerings in three levels:- Standard service package
- Enhanced service package
- Premium advisory package
Real Results Example
A business coaching practice raised their average transaction from $830 to $917 through:- Adding quarterly reviews
- Including an annual planning template
- Offering cash flow monitoring milestones
- Providing automated monthly accountability check-ins
Professional Implementation
Success comes from proper presentation:- Show all options clearly
- Explain benefits of each tier
- Present premium choices first
- Allow clients to choose freely
- Never pressure upgrades
Value-Added Services
Consider these additions:- Regular strategy sessions
- Priority response times
- Direct partner access
- Monthly performance updates
- Annual tax planning meetings
Remember, raising your average sale means presenting better options, not pushing unwanted services. Focus on showing genuine value that helps clients achieve their goals.
The compound effect of implementing all four profit strategies creates significant growth. Start with one area, perfect it, then move to the next. Your financial statements will show both revenue and profit growth, with profit increasing at a faster rate.
Take action today by examining which of these four areas needs immediate attention in your business. Small, strategic changes lead to remarkable results.
