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I’m looking forward to sharing great ideas with you and helping you to grow.
As promised, here are three of my top ideas that you can use for instant results. These ideas will apply to most businesses and can deliver thousands in sales growth and cost savings.
Idea #1: Increase Average Order Value
Many business owners leave lots of money on the table simply by forgetting to use simple cues to increase average order values.
My favorite example of this is a coffee shop. Every time a customer orders a coffee, this should prompt the server to ask, “Would you like some food with that?”
In my experience, one in every five customers will say “Yes!” and proceed to order a food item worth around $10.
That’s $10 more on 20% of transactions, or $2 more per order on average. If the coffee shop serves 250 customers a day, that’s an extra $500 a day! $2,500 a week!
Yet I think only 1 in 10 coffee shops I’ve been to have promoted me. When I’m hungry and I don’t know it, I’m happy they asked. When I’m not, I’m happy they thought of me and offered me food (people love being offered food).
This works equally well in the online world too. When customers are checking out their shopping cart, offer them the options of adding similar products too.
Here’s how to do it:
- Find the point in time where customers might add to their order
- Determine the most useful product to offer customers as an add-on
- Simply offer customers the option of adding that product
It’s a simple and powerful exercise.
The trick is to make sure you do it, and remember to do it consistently. For example, employees need to be trained and reminded to do it. Anaeo Pro can help remind you.
There’s lots of upside to be gained in finding these high leverage customer touch points and simply asking a question or offering a useful product.
Idea #2: Attract New Customers
What’s the best marketing investment in the history of business?
Building something worth talking about into your customer experience and then letting them tell the world about it. Yep, word of mouth.
It is both the most effective and the lowest cost marketing out there.
Here are some examples to get you excited:
- On check-in at any Hilton Doubletree hotel, every single guest gets given a warm chocolate chip cookie. They hand out 75,000 cookies each day and 34% of guests tell their friends. That's 25,000 stories being told about Doubletree every single day. Each cookie costs just $0.20.
- The Magic Castle Hotel in Los Angeles has a red phone mounted on the wall near the pool. Guests pick up the phone and a staff member answers automatically: “Hello, Popsicle Hotline”. The guest places an order and minutes later a staff member wearing white gloves delivers your cherry, orange or grape popsicle to you poolside. On a silver tray, for free. The result? Magic Castle is one of the top-rated hotels in Los Angeles. Pretty good for a budget motel.
- Skip’s Kitchen is just your normal burger restaurant in California. Except just before you pay the waiter pulls out a deck of cards. If you pick the joker your meal is free. Based on the probability just 2% of customers win. The financial cost to Skip's is just $2 for every $100 spent. They're a busy restaurant that has never spent a single dollar on advertising.
Think through your customer experience from their point of view. What can you do that would get them talking? Don’t miss the opportunity to add a nice touch that makes customers feel good and gets them talking.
It could be as simple as a free cookie, popsicle or letting cards decide who pays the bill.
Idea #3: Earn Cashback on Expenses
Many business owners basically fly business class for free any time. Others decide to turn their expenses into 2% cashback.
They run business expenses through their credit card accounts to earn points.
- Find a corporate credit card with a good points offer.
- Charge your main expenses to the credit card to earn points.
- Pay the card balance in full every month to avoid any interest charges.
This is important. You were going to pay the bill in full in 30 days anyway, so make sure you set a reminder each month to pay your credit card balance in full to make sure you’re not charged the interest.
Because the standard credit card provides 30-days interest free, you only pay your bill in 30-days when you would have paid your suppliers anyway (you usually get 30-day payment terms), so your cash position is no different.
Everybody wins with this arrangement:
- Your vendors improve their cash flow because they are paid at the time of delivery, rather than having to wait 30 or 60 days.
- You get free travel and rewards spending to attend conferences, charitable events or just to reward staff, or cash back in your pocket if you choose.
- Your cash position is unchanged.
I’ve heard that some businesses use their points card to purchase enough supplies to earn, on average, a free trip a week. Even if you’re not at this scale, a 2% cashback program will improve cash flow by $2,000 per year for every $100,000 of eligible expenses.
You are incurring the expenses anyway. Why not get some cash back for your efforts?
Want more ideas like these?
I share ideas like these with members every week.
I try to focus on providing you with ideas you currently aren’t doing, or could you try that would make a big difference to your business. To help remove missed opportunities from your life. I also provide regular reminders to keep using these great ideas.
Because to be successful in business you need to stay on top of the small actions that add up to big results over time. Here are some examples of how impactful this can be:
- Attracting just two new repeat customers a week who purchase once a week with an average order value of $10 means a total of $54,080 more revenue for you per year.
- Increasing the average order value by 10% for a $500,000 turnover business with an average order value of $10 means a total of $50,000 more revenue for you per year.
- Increasing prices by 5% for a $500,000 turnover business means $25,000 more profit for you per year, because price increases fall straight to the bottom line.
- Reducing variable costs as a percentage of revenue by 1% means $5,000 more profit for you per year, assuming you have a $500,000 turnover business.
- Reducing fixed costs as a percentage of revenue by 0.5% means $2,500 more profit for you per year, assuming you have a $500,000 turnover business.
Not to mention the improvements you can make to product, customer service, customer experience, operations, working capital and employee relations that all eventually fall to the bottom line, make your business better, and your life easier.
Join me by becoming a member of Anaeo Pro for just $99 per year (a special price for the first 10,000 members) and I will regularly remind you to make these small improvements to your business, and give you access to my library of creative business improvement ideas.
Just making one of these changes can mean $1,000’s more in your pocket for just a $99 annual investment. I have one criminally underused tactic you can implement immediately to start earning 2% back on all your purchases that will probably pay off your investment in Anaeo in the first month. Imagine what it adds up to over the course of a few years…
One more thing…
Here’s my entire goal with this product: When you sign-up and pay $99 the clock starts ticking on how quickly I can deliver ideas that return your $100 back, and then continue delivering much much more beyond that.
There are single ideas in Anaeo Pro that would make $50,000 per year in additional profit for some businesses. That’s a 500x return on just one idea, in just one year! Chances are that idea will continue to reap rewards for your business year after year.
P.S. Large corporations and governments pay consulting firms millions of dollars for their work on how to improve, and the advice is always remarkably simple. What does this mean? You just need to do the little things right, but they forget to. Get access to the ideas and the reminders to do them by joining Anaeo Pro today.
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