POST-CORONA WORLD: HOW TO FIND THE MAGIC IN THE NUMBERS AND INCREASE YOUR REVENUE By Nestene Botha, Founder of ProTech Accounting Solutions and author of Tips, Tricks and Checklists from a Tax Practitioner. “The new world that awaits beyond Covid-19 is unlike anything you’ve seen before. Entrepreneurs have a duty to venture boldly and bravely into this new world, take it by the horns and conquer it, tame it, make it serve us – for the good of all humanity,” says Nestene Botha. Are you an entrepreneur trying to survive in a post-Covid world? You are not alone. In today’s unprecedented times, the world as we know it has changed. The reality is that while 90% of businesses reported reduced turnover during a Stats SA survey this year, other companies have been thriving. The question for many entrepreneurs becomes, how do you succeed in the current economic climate? According to Nestene Botha, the answer is hidden in three magic numbers – Revenue, the Number of Active Customers, and the Average Value per Customer. Botha has developed a magical approach that fuses brand strategy and accounting to uncover business numbers to help increase revenue. She explains, “revenue is the lifeblood of your business. It is made-up of the ‘Number of Active Customers’ and the ‘Average Value per Customer’.” Both breaks it down further, “If you have 10 active customers who pay R7,000 for your services on average, your monthly revenue is R70,000. However, most businesses offer a range of services at varying prices, so although the math might not be as easy, the process is straightforward. First, open a spreadsheet. In one column, list all the active customers. In the adjacent column, list the corresponding Rand value of that customer. Next, add the values per customer and divide that by the total number of customers to find the “Average Value per Customer”. Now that you know your numbers, the magic can begin,” she says. “By increasing the “Number of Active Customers” or the “Average Value per Customer”, the revenue increases.” Then comes the strategy The “Number of Active Customers” may be increased by either retaining more customers or acquiring new customers. Boosting customer retention by as little as 5% can increase profits by 25% to 95%. She says that quality customer management does not have to be complicated either. Leading with value and improving communication across the board can also help ensure loyalty. Another strategy for increasing revenue is by offering more value to existing customers, which is easier and less costly than acquiring new customers. “If people align to your company value, they will stay.” Botha continues, “if acquiring new customers is a bigger priority, positioning one’s brand authentically will attract the desired target market. Value needs to be communicated using communication to ensure customers understand what they are paying for and services provided and/or rendered.” There are seven communication advantages: Innovation, Passion, Power, Prestige, Trust, Mystique, and Alert. If the communication advantage is Trust, your marketing strategy should offer stability and security. Showing up consistently with tried and tested methods will help attract customers who value dependability while keeping current clients happy. As an innovative brand, on the other hand, companies should differentiate themselves from competitors by offering customers new and out-of-the-box solutions. Clients who value stability and security might not resonate with your state-of-the-art approach. “The ‘Average Value per Customer’ may be increased by offering more services to existing customers, selling products in bundles, using different pricing strategies, or introducing a new product. Remember, people pay for value, she quips, “the key is to figure out how you can offer more before planning how to charge them.” Botha believes that every entrepreneur deserves a ‘happily-ever-after’ moment for business. Finding the magic in the numbers can empower, inspire, and equip companies with the tools, weapons and armour that need to conquer this new world. Would you like to learn more? Join Nestene for an 8-week Group Coaching Practical Workshop starting 15 June 2020, or a 12-week Group Coaching Practical Workshop exclusive to #fempreneurs, commencing 16 June 2020. To register visit protechaccounting.com. Or join the conversation on Facebook @ProTechAccounting. Leave a Reply Cancel ReplyYou must be logged in to post a comment.