Payments platform Adyen (AMS:ADYEN) notes that during times like these, it can be challenging to find the “headspace” to map out business growth plans.
Adyen also mentioned that it can be difficult to know where exactly to start. The Fintech firm thinks that what we might need is a proper framework. In 2000, three McKinsey consultants released The Alchemy of Growth: Practical Insights for Building the Enduring Enterprise. In it they shared a model that invites entrepreneurs or business owners to “open their minds” and “break free” from existing thought patterns. It’s referred to as The Seven Degrees of Freedom for Growth and it offers a framework that has been designed to assist businesses with “broadening their horizons.”
As mentioned in a blog post by Adyen, payments can be “one of those unobvious opportunities for growth that can be a real driver of your expansion plans.” According to Adyen, it may “easily be mapped to at least four of the seven degrees” (which includes: maximizing existing customers, attracting new customers, innovation of product & services, innovation of value delivery system, improving industry structure, geographic expansion, stepping out into new business areas).
Adyen reveals that its team recently looked at how your business can “remove existing complexities” and now they’ve looked at how your payment platform can “play a part in planning your growth.”
According to Adyen, here’s how to “maximize” existing customers:
The first step in a proper growth plan is to “work out how you can sell more to those you already sell to.” As noted by Adyen, your customers “know who you are and what you offer.” Now it’s only “a matter of increasing the frequency of their purchases.” Adyen explains that payments can be “an essential tool in your efforts.”
Know thy customer: Selling more “means understanding them more.” How and where your customers pay are “two of the most fundamental characteristics you should know.” For instance, are they using Apple Pay on mobile but a debit card for making in-store purchases? An effective payments partner can “identify your customers’ preferred methods and ensure you can offer the whole range of them, both online and offline,” Adyen claims.
Maintaining loyalty: There’s never been “a more important time to build meaningful relationships with you customers.” Adyen reveals that 73% of global consumers “said that they would continue to favor the businesses they relied on during the pandemic.” Adyen further noted that “if the payments data between your digital and physical channels is connected, you can build a centralized view of your customers and in turn tailor your communications to specific customers.” For instance, you could “send an email with a 10% discount on the day of the month they tend to spend most.”
While sharing other practical tips, Adyen noted:
“Delivering a superior payment experience ensures you can generate as much revenue as possible from your existing customers as well as those new ones you’ve worked so hard to attract. This can be done by optimizing your purchase funnel and payment page. From offering one-click payments to auto-filling personal information into forms, there’s a variety of ways to create a more enjoyable checkout experience.”
(Note: to learn more about how to provide a more engaging customer experience, check here.)