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Business Processes
The Power of Standard operating Procedures
How Standard Operating Procedures Can Revolutionise Your Business
Marie Curie Didn’t Just Revolutionise Science – She Gave Us SOPs
The Science of Order: Why SOPs Matter
From Curie’s Lab to Your Business: The Parallels of Precision
Here’s How SOPs Can Transform Your Business
The Real Impact on Small and Medium Businesses
What This Means for Your Marketing Strategy
SOP Your Way to Success
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Digitally First but Physically Enhanced
The Online Business Model has usurped the Physical Business Presence as the primary business presence. Physical businesses now support the online versions.
This transitioning has been fraught with difficulty but has been terribly exciting. Successful transients are alive with possibilities…
The Power of Standard Operating Procedures Read More »
Build business processes to predict successBusiness Processes
The Ripple Effect of Innovation
Your Coffee Moment: The Small Gesture That Defines Your Brand
How Small Changes Can Transform Your Business
Julius Caesar once threw extravagant parades for his victories. But not all these parades were for conquering new territories; some were simply to celebrate winning over his allies. Caesar understood that public recognition could make or break his career, and that small gestures of acknowledgment were often more powerful than grand military conquests. While we may not be marching through Rome today, the principle remains the same—leaders, businesses, and even small gestures can dramatically shape public perception and loyalty.
This idea resonates just as strongly today, even in unexpected places, like a small tile business in South Africa, where a cup of coffee is the new parade.
The Cape Tiles Example: Small Gestures, Big Impact
In my blog post, “Innovation vs Relevance”, I discussed how Wesley, the owner of Cape Tiles, created value for his clients by offering them coffee while they waited. A simple gesture, right? But it became more than just a drink. It turned into part of the company’s identity—a symbol of their hospitality. However, as costs rose, Wesley considered cutting back on this seemingly insignificant offering.
After reading the article, Wesley doubled down on his belief in the power of small gestures. He responded by creating an Instagram reel, reinforcing the coffee and hospitality culture at Cape Tiles. You can see it here: Instagram reel. It’s a perfect example of how small touches—when acknowledged and celebrated—can transform into defining features of a business. This isn’t about the coffee itself, but what it represents: warmth, care, and personal attention
Why Leaders Crave Recognition—And Why It Matters for Businesses
Just as Julius Caesar paraded for political victories and Wesley filmed a reel about coffee, recognition plays a key role in leadership and business success. Human psychology is wired to seek validation, and it’s this validation that often fuels the drive for innovation. Leaders like Caesar, or more contemporary icons like Steve Jobs, knew that to maintain their influence, they needed to be seen and appreciated.
In the same way, businesses need recognition—not just through massive campaigns but through small, authentic interactions that resonate with customers. This could be as simple as a thoughtful follow-up email, an unexpected freebie, or an Instagram post thanking customers for their support. These gestures create a sense of belonging, making clients feel appreciated and connected to your brand.
The coffee at Cape Tiles wasn’t just a drink—it became a symbol of how the business valued its customers, turning a cost into an investment in relationship-building. Wesley could have seen the coffee as an unnecessary expense, but instead, he recognised it as a unique selling point that kept customers coming back. His response video beautifully encapsulates this idea, offering a modern take on Caesar’s parades: small gestures that lead to big returns.
The Parallel with Small and Medium Businesses: Creating Your Own Parades
The concept of adding value through recognition is easily applied to small and medium-sized businesses. Take, for instance, a local bookshop that sends handwritten thank-you notes to its customers or a boutique hotel that surprises guests with complimentary snacks in their rooms. These small but meaningful acts don’t break the bank but speak volumes about the company’s brand ethos.
For SMEs, these “parades” can be even more impactful because they differentiate you from larger corporations that often overlook the power of personal connections. If you’re a small business owner, ask yourself: what’s my coffee? What small but powerful gesture can I introduce that will make my customers feel valued and appreciated?
And don’t just think about the immediate cost. Just like Wesley’s coffee became part of Cape Tiles’ culture, your “coffee” could become part of your brand identity, making you memorable and building long-term loyalty.
What’s Your Coffee?
As I reflect on both Julius Caesar’s parades and Wesley’s coffee culture, the question for small businesses becomes clear: are you creating enough of these “parades”? Are you finding ways to publicly recognise and appreciate your customers in a meaningful way? It doesn’t need to be a grand, costly gesture. Sometimes, all it takes is a cup of coffee—or the equivalent for your industry.
Think about the simple things you can do to make your customers feel special. It might just be the small spark that transforms your business from ordinary to unforgettable. So, what’s your coffee, and how will you use it to enhance your marketing strategy?
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Digitally First but Physically Enhanced
The Online Business Model has usurped the Physical Business Presence as the primary business presence. Physical businesses now support the online versions.
This transitioning has been fraught with difficulty but has been terribly exciting. Successful transients are alive with possibilities…
The Ripple Effect of Innovation Read More »
Build business processes to predict successBusiness Processes
Unleash Exponential Profit by Compounding These Growth Catalysts
The Secret to Compounding Small Improvements for Long-Term Profit Growth
Transform Your Business with Simple 10% Tweaks
Many businesses focus on short-term wins, such as securing one-off deals, but these are often unsustainable. A better approach is to focus on compounding small improvements across key areas of your business. If you could achieve just a 10% improvement in each of your seven primary performance factors, your profitability could increase by an incredible 94%!
In this post, we will explain how improving each Growth Catalyst by 10% can lead to such a dramatic profit increase. And to make this concept more tangible, we’ve included a simple calculator where you can test this proposition for your business.
1. The Concept: 10% Improvement Across 7 Growth Catalysts
The idea is simple: by focusing on small, incremental improvements across 7 key Growth Catalysts, you can achieve an astounding overall profit increase. This happens because improvements in one area reinforce improvements in others, compounding the effects and leading to exponential profit growth.
Here are the 7 Growth Catalysts you should focus on:
a. Foot Count or Web Traffic
This is the number of people who walk into your store or visit your website. Even a 10% improvement in traffic will immediately generate more opportunities for sales.
b. Opt-ins, Interest Shown, Demos Requested, or Fittings
Out of the people who visit, how many express interest by opting in for emails, signing up for demos, or engaging in a product fitting? A 10% improvement in this conversion step increases the pool of potential buyers.
c. Number of Conversions
Once a customer shows interest, the next step is converting them into a paying customer. By improving your conversion rate by 10%, you turn more leads into sales.
d. Number of Items Bought per Customer (Upsell or Onset)
Encouraging customers to buy more during each transaction—either through upselling or cross-selling—directly increases revenue. A 10% increase in the average number of items bought can significantly boost the overall transaction value.
e. Average Sale Price (Product Selection, Brand vs. Generic)
Even a slight shift in the average sale price—whether by promoting higher-end products or adjusting your pricing strategy—can have a large impact on profitability. A 10% increase in the average sale price will quickly boost profits.
f. Customer Lifetime Value (How Often Customers Buy, Total Purchases Over Time)
If you can encourage customers to return more often or spend more across their lifetime, you’re adding long-term value to your business. A 10% increase in how often customers return significantly adds to your compounding profits.
g. Markup (Higher-Margin Product Selection)
By improving your markup, either by negotiating better deals with suppliers or promoting higher-margin products, you’re making every sale more profitable. A 10% increase in markup has a direct impact on bottom-line profits.
2. The 10% Rule: How Small Improvements Compound
You might be wondering how improving these seven areas by just 10% can lead to a 94% increase in profitability. The magic lies in the compounding effect.
Improvements in each factor multiply each other, leading to exponential growth. For example, a 10% increase in foot traffic boosts not only the number of customers but also amplifies improvements in opt-ins, conversions, and average sale price.
Let’s break it down step by step:
Profit Increase=(1.10)7−1=94Profit Increase=(1.10)7−1=94
This means that if you improve each factor by 10%, your overall profitability could increase by 94%—nearly double your current profits!
3. Key Areas for 10% Improvement
Below is a recap of the seven key factors, alongside specific strategies to help you achieve that 10% improvement:
a. Foot Count or Web Traffic
- Enhance SEO: Implement small changes to improve search engine rankings.
- Local marketing campaigns: Run short-term promotions or events to attract more foot traffic or web visitors.
- Boost visibility on social media: Target campaigns that generate a 10% increase in website clicks.
b. Opt-ins, Interest Shown, Demos Requested, or Fittings
- Optimize CTAs: Test and improve calls-to-action on your website, store signage, or social media to boost opt-ins.
- Offer exclusive demos: Use limited-time demo offers or free consultations to encourage more sign-ups.
- Engage in-person customers: Train sales staff to encourage more people to try products, increasing demos or fittings by 10%.
c. Number of Conversions
- Sales training: Continuously refine sales scripts and objection handling, aiming for a 10% conversion boost.
- A/B test landing pages: Experiment with different messaging, images, or layouts to improve online conversion rates.
- Follow-up strategies: Increase the number of follow-up interactions with potential customers to close more sales.
d. Number of Items Bought per Customer (Upsell or Onset)
- Implement bundles: Offer product bundles that naturally encourage customers to buy more.
- Cross-sell recommendations: Use algorithms or sales techniques to recommend complementary products.
- Train staff: Regularly train employees to identify and promote upsell opportunities.
e. Average Sale Price (Product Selection, Brand vs. Generic)
- Promote higher-end products: Increase visibility of premium or high-margin products.
- Price optimization: Experiment with raising prices on certain items by 10%, monitoring customer response.
- Offer value-added services: Attach premium services or warranties to boost the average sale price.
f. Customer Lifetime Value (How Often Customers Buy, Total Purchases Over Time)
- Loyalty programs: Gradually enhance your loyalty program to encourage repeat business.
- Personalized marketing: Use targeted marketing campaigns to bring back customers more frequently.
- Subscription models: Introduce subscription options where customers make regular purchases automatically.
g. Markup (Higher-Margin Product Selection)
- Renegotiate supplier terms: Gradually negotiate better prices with suppliers.
- Focus on premium products: Promote higher-margin products more prominently in your store or online.
- Reduce operational costs: Improve operational efficiency to increase profit margins.
4. Case Studies: 10% Improvements in Action
a. Amazon
Amazon has continuously optimized every aspect of their business, from logistics to product recommendations. By focusing on small, incremental improvements across their supply chain, customer experience, and product selection, they have been able to increase both traffic and profitability year over year.
b. Starbucks
Starbucks achieved significant growth by focusing on incremental improvements across customer retention, pricing strategies, and product upsells. Small improvements in the average sale price of premium drinks and increased customer frequency through their loyalty program have made a massive impact on their bottom line.
5. Test the 10% Rule: Use Our Calculator
To help you see how these improvements can work for your business, we’ve included a Compound Improvement Calculator. Input your estimate figures for the number of key factors where you can expect growth, and the estimated average improvement % and the calculator will show you the potential impact of the improvement in overall profitability
Use the calculator to explore how different small improvements can lead to a huge profit increase over time.
This will allow you to see firsthand how even modest gains can have a dramatic impact on your bottom line.
Compound Improvement Calculator
But there are other growth catalysts too
- Employee productivity
- Operational efficiency (reducing waste and streamlining processes)
- Inventory turnover rate
- Customer satisfaction scores
- Speed of service or delivery
- Upsell/cross-sell success rate
- Cost per acquisition
- Website loading speed (for online businesses)
- Email open and click-through rates (for marketing campaigns)
- Social media engagement rates
- Employee retention rate
- Supplier negotiation (improving terms or costs)
From Small Improvements to Big Profit Growth
While chasing one-off deals or temporary promotions may seem appealing, the real path to long-term, sustainable profit growth lies in compounding small improvements.
By focusing on the seven Growth Catalysts and striving for just a 10% improvement in each, you can increase your overall profitability by up to 94%.
Start by identifying one factor to improve today. Use our calculator to measure the potential impact, and watch how small, consistent changes will transform your business over time.
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Digitally First but Physically Enhanced
The Online Business Model has usurped the Physical Business Presence as the primary business presence. Physical businesses now support the online versions.
This transitioning has been fraught with difficulty but has been terribly exciting. Successful transients are alive with possibilities…
The Power of Compounding Small Improvements Read More »
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