If you search deep enough, you can unearth different ways of increasing revenue for your business. However, all that you find can be summed up into four principal strategies.
- I). The need to increase the prices of your product or service, which should not be a difficult undertaking yet one that is very significant and can easily backfire on you if you make a mistake.
- II). The push to grow your customer base via retaining the old as you strive to rake in the new prospects. The more the customer, the more revenue stream grows.
- III). Optimizing the size of the average transaction for every customer. Principally, the objective is to bolster the customer’s LTV (Life-Time Value).
- IV). Attempting to increase LTV by encouraging customers to make more purchases and become routine or loyal clients.
To help you have a better understanding of things, we will break down the four strategies as well as touch on the actionable methods you can employ for them.
Increases Product Or Service Price
Raising the prices of your products or services can be one way to increase your revenue via sales. However, such a move and affect you’re the volume of sales transactions, as well as their frequency, and this can be counteractive to your primary objective. As such, the planned price hike should be a calculative move that is guaranteed to yield impressive results. To get it right, you will need to:
- Give viable reasons for the increase
It means that the rise in the prices should not be a random decision with you hoping for the best. You need to have solid reasons for such a move and then communicate your reasons to your prospects, customers, or clients.
- Optimizing the perceived value of your products or services
If you have customers that are buying your products or services, know that they do so not because they like what you have to offer but for the benefits of what you are providing. Thus, the more benefits they can get due to the planned price increase, then this may be enough to convince them to make purchases.
Growing The Customers Base
Doing what you can to bring in more people through the company doors can have a direct impact on increasing revenue. It is a tactic that primarily focuses on acquiring new customers. But this can prove to be a significant challenge, especially if your industry is saturated. Moreover, dealing with new clientele can turn out to be an expensive undertaking that sees the business making losses can profits.
To get it right when trying to rake in new customers, you need to have the Right Mindset that focuses on Lead Generation, Nurturing, and Conversion.
Moreover, to bag that new customer you first need to fish for prospects. Keep in mind that not every prospect you bag will convert into a sale or customer. To hook the right prospects, you will have to invest in the following:
You need to have the right bait, which in this case is churning out the right content for Houston search engine marketing purposes. A percentage of the prospects out there may not know that they can need your product or service, let alone recognize you have something to offer. What they are searching for is information that will stir them in the right direction – towards you – with the promise that you have a solution to their problem. You will achieve this by developing and posting relevant, educative, engaging, and informative content that addresses their specific needs. That is how you will have them hook, line, and sinker.
Even if social media and text services are a popular means of communication, email is still an essential feature in any marketing and promotion campaign. Research shows that email marketing is still one of the best promotional avenues with an impressive ROI of 4,400%.
- Pick The Right Acquisition Channels
Never assume that acquisition or marketing channels that seem to work for a particular business will give similar results for your venture. Every channel as unique attributes depending on is frameworks and methods of implementation. You, therefore, will need to employ a trial and error approach as you also factor in your target market.
Increasing Sale/Transaction Frequency
The objective here is to get every prospect interested in making a purchase. Assume you run a diner and have customers that come by once every two weeks. In such a scenario, you are likely to increase your revenue if you convince them to be coming once or twice each week. But then again, you need to incentivize them to make such a decision. Here is what you will have to do:
- Customer Loyalty Discounts
People are naturally inclined to like exclusive things. Therefore, see how you can play with their psychology by offering them special discounts and offers on new products or services. Given top priority to your existing loyal customers before focusing on the new ones. It is a strategy meant to spark a sense of urgency in your customers that pushes them to purchase while stocks last and the limited time ticks.
- Payment Flexibility & Installment
Availing easy, transparent, and reliable financing options to your clients can prove useful when trying to increase the sale of expensive products or services. It can even lead to repeated purchases. With much of the current generation ditching credit cards, taking such a course will be a huge plus for your company’s objectives.
Do not undermine the power in email marketing because emails are still very relevant in today’s corporate world. Therefore, this can be a platform that you can use to send out promotional messages with personalized offers uniquely designed to suit a customer’s preference and needs. Again, the goals will be to encourage them to make another purchase.
Direct Mail and Cold Calling
The use of these slightly dated but still practical direct approaches can prove helpful. But to make the most of them, you should implement them as an option that complements the other promotional marketing methods mentioned above. If you consider how many promotional messages that an individual can get in a day, it will be refreshing for them to get such messages via a different approach.
Increasing The Average Transaction Size
So, convincing your customers to make more and more purchase is an effective means of increasing revenue. However, it is not the only card you can play. Rather than focusing solely on increasing the number of sales, you also should look into expanding the size of the average transaction.
For this, you have to understand your audience. You will be up to upsell and cross-sell more effectively once you know your current and target markets. Have an explicit knowledge of what the need so that you can fashion your goals to offer a solution for their problems.
Perhaps, you may need to come up with need products or services that will be an answer to your needs. For instance, you may be selling marketing automation software, and you are aware that your clientele relies on cloud storage. If so, then why not come up with a cloud service that you can offer them?
Research your customers and come up with a buyer persona even as you strive to build detailed profiles for your customers. It will help you have an effective upselling and cross-selling strategy.
From the above, it is evident that all the strategies and channels available out there can be summed up into four things: get more customers, raising prices, increasing transaction frequency, and growing the transaction size.
Each does have its merits and drawbacks, but they all work collectively to yield expected results. However, how well they can deliver depends on several things. Therefore, they may work for a particular company but yield little for another. Strive to understand your target audience (your customers) and fashion your strategies to ensure that you offer a solution to their problem, and everything else will not have a hard time falling into place.