If you are thinking of growing your business or keeping it profitable, make sure you have an answer to these top 6 common business problems.
1.Not enough leads.
Leads are genuine enquiries into your services or products.
Every business will experience seasonal fluctuation of business inquiries and downturn of calls from time to time. Unless your company has zero competition and is positioned to be the absolute market leader in your industry, you will experience episodes of soft inquiries about your services.
If you don’t have enough leads, the first thing you do is to find ways to generate some traffic to your business page, and there are two types of traffic:
1.1 Free Traffic:These are visitors contacting your business to enquire about the services that cost you nothing or zero dollars. For example, they may find your business through search engines (Google My Business, Bing Business, Yahoo. Etc), blogging, podcasts, Facebook, LinkedIn posts, YouTube Videos, or other social media posts.
But beware, this traffic may appear free from the onset; there is an initial investment of time, energy, and money into developing the content and optimizing it into engagement tools to get the traffic
1.2 Paid traffic:These are simply advertisements. You pay a small fee to get instant traffic to your site, service page, or business page. And they will cost you money regardless of whether they take action to purchase your services. Examples of paid traffic are visitors clicking onto your Google Ads, Facebook Ads, BING and LinkedIn Ads, and other social media ads platforms.
The benefit of paid traffic is instant exposure if you craft your ads the right way. Compared to Free traffic, it may take time to reach your ideal target market.
2.Poor conversion rate.
It simply measures how effective you are converting your leads into sales. It is surreal that some businesses have no problems getting leads but have a problem converting them into customers.
There is 3 Solution to tackle this problem:
2.1 Qualify your leads, as best as possible to improve the conversion rate. Not all leads are equal: some enquiries are serious and eager to buy right now; some are just curious and love to shop around; some don’t even have the cash to purchase your service. So, you need to segment them in terms of age, gender, income level, lifestyle, interest, the whole nine yards of market segmentation: demographic, psychographic, behavioural, and geographic.
2.2 Build a lead generation system that converts. To jazz up the success rate, you need to throw in a bait; examples of how to use it successfully are as follows: –
- Free 1 hr assessment (chiropractors love this idea)
- 30-60 mins free consultation/ strategy call (works well for lawyers and consultants)
- Free giveaway of intellectual properties: eBooks, templates, Video training, Cheat sheet, Software trial access, etc.
- Low ball Offers: $49 teeth cleaning service performed by a dentist.
As soon as the leads grab the bait, such as entering their email, phone, addresses, and attending the services, they have demonstrated a genuine interest in your offer, and all you need is to convert them into a sale. And that leaves us to no3.
3. Lack of sales training.
Some business owners are afraid of selling, and hopefully, you are not part of the statistics.
Ideally, the person who picks up the phone should know how to close the sale with just one call, without having the customer wait for an expert to call back.
Ideally #2, you should have a salesperson either as a commission base, or , but that luxury may sometimes not be available to a small to medium-sized business. In our view, everyone should know how to close a sale with just one call, or at least to upsell them, but if not, the worst case is to sustain the buyers’ interest until an experienced closer attend the call.
Now, here are 2 Solutions to deal with this problem.
3.1 Develop a sales process or funnel to convert leads into customers, and if that’s not successful, you build your database because not all leads are hot leads.
3.2 Get everyone trained to close a simple sales enquiry, teach them from basic sales skills to intermediate level. You can create a training video or engage a company that can do it for you.
Sales skills are essential as it helps your company convert leads into customers. Do not run into the mistake of buying traffics but don’t have a sales process/ funnel to convert them into sales. That’s just a loss of money.
4. Difficult to get prospects to buy on the spot
To win more sales and convert more leads into customers, you need to surpass their trust level.
Customers buy from people or businesses they trust because it gives them a sense of certainty, familiarity, significance, and security. And this could be due to several factors: a brand that exudes quality and status, the empathy of the consultant, being seen as the expert, being likeable, professional proposal/ website/ contracts, raving testimonials, and reviews.
But sometimes, customers’ trust level can be compromised by the pricing model and how well you explain the value of your services, for example. If you communicated your Value so well that it makes your asking price appear below their expectation (aka. Value for money), it will increase their likelihood of purchasing your service.
Here are three solutions to establish customers trust.
4.1 Develop content that speaks to them, either written (blog) or Video (YouTube videos). Content such as informational and educational blogs and videos will help build trust because people are initially sceptical until they get to know you as a person.
4.2 Provide sufficient information about your service and product on your website and email campaign and invite them to call you or your staff to discuss their challenges.
4.3 Buy Pay-Per-Click Ads and put tracking pixels and codes on your pages. Your prospects will start seeing your ads popping up everywhere, from Google searches to YouTube videos to Facebook pages and the more they see you, or your brand, E.g., 16 or 17 times, the more they become familiar to you. As a result, you are gradually building trust. Somehow, when they see your Ads appearing everywhere, your service and branding imply credibility.
5. Forgetting your past customers
Business owners are so busy chasing new sales/ clients that they have forgotten their past customers/ clients.
5.1 Pluck them out before they dropped to the ground. Past customers/ clients are your low hanging fruits and are more receptible to repeat business, sales, or repeat referral.
Depending on what you’re selling, they may not need your service this time of year. However, you can ask for referrals or make them a referral partner to give them a small commission for successful sales.
Otherwise, ask them to write a fantastic testimonial for your business; either way, your past customers and clients are your assets.
6. No system for affiliated/ Partner/ Joint Venture program.
Hotels, motels, tour groups use 3rd party agents such as booking.com hotel.com, wotif.com to help them sell their rooms and services.
You must think about who else, or which group of companies, can help you promote or sell your services on your behalf on commission basis.
6.1 Contact sales partner agencies in your industry and join their partner program. They get a commission for every business referral or sales, thus saving you some marketing costs.
6.2 Set up your networking/ affiliated program. Contact influencers and businesses that complement your business and establish a referral program with them. Everybody wins.
Industry commission standard can range from 15-35% per successful referral/ sales to 50% commission splitting depending on what you are selling and offering.
Now that you have the six common business problems and solutions, it’s time to act.
Every week you should apply one idea to your business, and in six weeks, you should be able to see some growth in your business revenue.
Expect that the resources, money, and time invested into developing your systems can be time-consuming, but it is a worthwhile exercise that gives you an ongoing stream of sales. Think of it as an investment into business growth.
We hope that the top 6 common business problems and solutions will help ease your way to business success.
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