Let’s do a short test on your business and client acquisition to find out where a problem might lie.
Question 1: On a percentage basis, how utilized is your business’s capacity at the moment?
- Less than 30%
- Between 30% and 70%
- More than 70%
Advice: At the beginning of a business, up to 30% utilization is completely logical – you are building momentum. But if your business is more than 6–9 months old, your average capacity utilization should not be below 60%. If it is lower in reality, then you have certain problems with attracting or retaining clients. If your capacity utilization is over 70%, it’s time for you to think about scaling your operations. But first, you need to monitor the dynamics and calculate whether scaling will yield the desired result.
Question 2: Does your client list consist mainly of regular clients or new ones?
- More regular clients
- More new clients
- Roughly an equal number of regular and new clients
- I haven’t done an analysis
Advice: If you offer a one-time service, it’s logical that your task is the constant expansion of your client base and attracting new leads. If the service involves repeat business, then you have two tasks: attracting new clients and increasing the loyalty of your regular clients.
Question 3: How many methods of attracting new clients do you use?
- 1 method
- 2–5 methods
- More than 5 methods
- Only word-of-mouth
Advice: Due to the constant changes in client behavior, it is necessary to regularly test new ways to attract clients through different sales channels. Methods for attracting clients include special price offers, working with reliable brand ambassadors, target audience exchange, gifts, and additional bonuses with your product. Different sales channels can be traditional or modern. Traditional: offline advertising, banners, mass media, Google and local search engines, client recommendations. Modern: social media, platforms, paid targeted advertising. Every business is unique, and you need to select the promotion methods and channels that will work specifically for you.
Question 4: How do you retain regular clients?
- I have a loyalty program
- I provide discounts for repeat visits
- I offer bonuses and gifts
- I send out newsletters with product reminders
Advice: The golden rule of business is: it’s much cheaper to retain a client’s loyalty than to acquire a new one. On average, attracting a new client will cost you 500 CZK. It is much cheaper to create a business that clients will keep returning to. A loyalty program should consider the specifics of your target audience, meet its needs, and succinctly complement your business strategy.
And a few final tips:
| Problem | Solution |
| Insufficient capacity utilization. | Intensify your marketing efforts. |
| There are new clients, but they don’t make repeat purchases. | The problem lies in the quality of the service or the business infrastructure. Pay attention to the product itself and its components. |
| Clients return, some become regulars, but not all. | Pay attention to post-sale communication (after-sales service). Perhaps you should remind clients about your services periodically. |
| There are many new clients, but they are dissatisfied with the product. | There could be 2 problems: poor quality of the product and its components, or the wrong target audience with values different from your business’s. Conduct a detailed analysis of satisfied clients and try to attract a similar target audience. |