No matter what business you are in, there is no standing still. You are constantly on the move. What direction you are heading depends on how well you can drive revenue growth for your company. Your plan to grow your business can either help you or hinder you. With the right strategy for revenue growth, you can keep your business moving forward for years into the future.
Your business is like any machine. It needs to be cared for and maintained constantly to prevent any one part from failing. And like machines, your business can benefit from finding new ways to make it run better, faster, stronger. Do not get comfortable with doing the same things over and over just because they are working well enough for now. Be prepared to step out of your comfort zone, take some chances and find new ways to help put your sales into overdrive.
Here are seven ways that you can drive revenue growth for your business:
1. More sales
It sounds obvious, right? The statement itself is simple but it’s figuring out how to do that that is more of a mystery. You need to step back and ask yourself just what options are out there that can help you bring in more new customers. Where do I find them? How can I reach them? What will entice them to use my product or service? Reaching out to more potential customers means more sales for your business.
2. Increased Number of Buys
You’ve probably heard it before, but it’s easier and less costly to keep a current customer than it is to go out and get new ones. Don’t forget to put a lot of focus on the patrons who are already using your products or services. Show them that they are valued by your company and they will continue to be loyal customers. Find ways to increase how often they purchase from you and how much they spend each time.
Another bonus of creating loyal customers is that they will do a lot of word-of-mouth marketing on your behalf. Creating brand champions from your customers is a great way to bring in new business.
What can you do to create these brand advocates for your own business?
3. Sell Additional Products
Maybe your business is centered around only one or two main products. What else could you be selling to them? What items or services could you provide that will also appeal to your customer base? For instance, if you own a clothing boutique then you might start offering shoes and accessories as well. What opportunities are there in your business to sell more products to your customers?
4. Upselling: Adding to the Ticket
Upselling is where you work to increase the total amount of the sale on each ticket.
So, if you are working in your boutique and have a customer who selects just one shirt, you would pick out a few different accessories to show her that would complement the shirt that she chose. She may choose one or all of the items to go with it and then you’ve increased the sales revenue on that ticket.
Another way to do this is by offering additional items at a discount, such as a buy one, get one 50% off deal, that will encourage your customer to add something else to their selection.
5. Raise Your Prices
One of the easiest ways to drive up revenue growth is to increase how much your customers pay for your products or services.
This can be tricky when you already have an established customer base. They will want to see you justify the reason behind a price increase.
The reality is that price is dictated by our competition. If someone else is able to sell the same product at a higher price, then you can benefit from that increase as well.
Find ways to show your customer that the price increase is a good thing. Maybe it means better packaging, more locally-produced items, better quality control. If the price increase is sensible and makes sense to your customer, then it is a great way to boost up revenue.
6. Make Sales That Are More Profitable
To this point, the ways to drive revenue growth have been focused on increasing gross sales revenue. But what is most important to any business is the amount of profit and cash flow that comes in. In addition to improving your gross revenue, you also want to increase net sales so that you are creating a business that is more profitable.
You look at what items are more profitable for you to sell as well as which customers are more profitable for your company. Does item B sell more frequently than items A and C? Does item C spend more time in inventory than it does going home with a customer? Perhaps item C is a product you don’t need to carry anymore so that you can make room for an item that might sell better.
For customers to be profitable, you need to look at how much service they require after the sale. Do you deal with a lot of troubleshooting with one customer in particular? Is there one customer who returns items frequently? Are there some customers who spend more in your store on a regular basis?
Each of these factors plays into how profitable your sales really are. Breaking down each one can help you see how best to move forward and increase revenue.
7. Cut Down Costs
As said above, it costs more to acquire new customers than it does to keep current ones. Do you know how much you are spending on bringing in new customers? Has it been effective? What is your return on spending for your marketing efforts? What is your sales process? Are you paying your salespeople enough to keep them happy and doing a good job? Are your marketing materials making a difference or are they a waste of money?
Look through all the expenses of selling your products and services. Where can cuts be made without being a detriment to your team? What more cost-effective ways of marketing can be beneficial for your business? How can you reduce the amount of overhead so that your revenue is more profitable? All of these ways of increasing your revenue can be utilized no matter what business you are in. A steadily growing revenue for your business determines how far forward you can go. Don’t be afraid to try new tactics to help boost growth in your revenue.