We work with construction companies across the UK and the recurring theme we see is that business owners are forgetting that the business is there to serve you, not the other way around. Many business owners feel enslaved to their business and this could be down to multiple different things such as they feel out of control, they feel that they must keep working the way they are as it gets them through or it might feel like there are not enough hours in the day to handle all the different areas that need to be managed.
We support businesses and provide real solutions that help business owners take the pressure off their shoulders and focus on why they started their business. We understand that you are experts in the field but how about when it comes to understanding your numbers? Producing a business plan? Handling your phone calls? Your social media or even keeping on top of the paperwork?
Saint Financial Group has many opportunities to help your business in different ways, we want YOUR business to serve you and not the other way around.
A simple start to helping your business is a quick 7 ways you can grow your business!
😇 Number 1: Increase Customer Retention Rate
Your customer base is your most important asset. They have already purchased with you and if you keep customer satisfaction high it is likely they will purchase again. It is much cheaper to make sales to an existing customer, statistics show that it is six times easier and cheaper to make sales to an existing customer than it is to a new one.
You should be looking at ways to keep your current customers happy - What are you doing differently from competitors? What would make them return to you? Do you know what it is your customers want? How do you communicate this to your customers? How are you showing your customers you are the right choice?
Customer retention strategies:
- Loyalty programs
- Ask customers what they want (surveys etc)
- Follow up with your customers after they have made a purchase
- Social activities
- Email campaigns
💲 Number 2: Generate more leads.
The second way to grow your business is to generate more leads. To generate more leads you need to know some essential information; who is your target market? Where do you find them in their highest numbers? You need to understand this in order to tailor your marketing to the right people.
The Marketing Funnel begins with someone who is in your target market but hasn’t yet responded to any of your marketing. When that person responds to marketing or makes an inquiry, they become a lead.
It’s vital to follow your leads up and give them an opportunity to buy, moving them from being leads to being prospects.
At this point, we move from the lead generation phase to the sales phase, and your prospects become your likely customers. After a single purchase, they become your customers, and after repeated purchases, they become your loyal customers. Finally, we want to get your loyal customers to tell everyone about their experience with you and generate referrals (referral rewards can be very useful here as a way of rewarding your loyal customers)
An easy and manageable way to handle your customer relations is a CRM (customer relationship management) system. Do you have one already, if not how are you keeping track of your leads to ensure they are being followed up?
Lead generation strategies:
- Attending events
- Strategic Alliances
- Website Blogs & Articles
- Open days
- Social Media
💫 Number 3: Increase Conversion Rate
The third way to grow your business is to increase your conversion rate. Are you measuring your success at converting leads, quotes, and proposals to sales? Do you regularly review why you aren’t converting more of them?
Can you identify if you have stand-out performers in your team who have a higher than average conversion rate? Are you using the right people? Do you have the right sales process in place?
When you deal with the customer are you dealing with decision-makers? Make sure you are dealing with the people who can make things happen. Your conversion rate might be sales made as a percentage of proposals delivered or sales meetings held. If you’re not measuring these, you need to start now!
- Use a follow-up system
- Sales training
- Proposals with options
📈 Number 4: Increase transaction frequency.
The fourth way to grow your business is to increase transaction frequency. It is much harder to sell to new customers than it is to sell to existing customers. It makes sense to encourage those customers to buy from you more often.
Transaction frequency strategies:
- Special offers
- Loyalty events - social/no obligations
- Book a meeting from a meeting
- Introducing VIP/membership cards
💌 Number 5: Increase transaction value
The fifth way to grow your business is to increase the transaction value. This doesn’t always mean increasing your prices. It could mean how can you add more value to your customers? Do you give them a range of options? Do you make it clear what you are offering? Don’t assume they know what you sell and they know exactly what they want - ask them!
Transaction value strategies:
- Four for the price of three
- Discount for add-on sales
- Increasing price
- Proposals with options (the choice of yeses)
- Stop offering discounts unless the customer has purchased an add-on.
😏 Number 6: Reduce cost of sales / variable costs.
The sixth way to grow your business is to reduce your variable costs. These are the costs that increase as sales increase.
Variable cost strategies:
- Supplier terms
- Early payment discount
- Reduce wastage
- Better systems
- Record time/materials better
- Alternative materials/bulk purchases
🥳 Number 7: Reduce overheads.
The final way to grow your business is to reduce your overheads. These are your fixed costs, e.g. phone, power, interest, etc. How often do you review your overheads? It should be done annually. Go through your annual financial statements or your Xero reports and see if you have any potential areas where savings can be made.
Overhead reduction strategies:
- List all recurring purchases and review them annually
- Look for better terms
- Bank interest
- Computer support etc
Get in touch with us today if you are looking to grow your business and we can implement are proven growth strategies specifically designed for construction businesses!
Frequently asked questions
This article has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the provided content.
PS. Whenever you are ready, here's how to grow your construction business...
1. Join our Facebook Group which built completely for businesses within the construction industry. Real people, real support. - Now also available on LinkedIn.
2. Keep up to date with Construction Insider Providing you with industry insight, tips & tricks and much more to make sure you are ahead of your competitors!
3. When you are ready, Become a Saint Financial Group client, and we will provide you with the highest quality solutions to effectively scale your construction business. Book your meeting here!
Written by the team at: