Tips to Increase Revenue
Growing a small business is not easy and requires ton of hard work, dedication, focus, and even some luck. Knowing how to manage your growth and ensuring your ability to deliver exceptional products is essential for long-term success.
How can you use time management strategies for business success?
You need to grow to survive and to increase your profits. To increase profits, you need to lower your business expenses and grow your revenue. To grow your revenue, you can expand your customer base, grow your average transaction size, increase purchase frequency and evaluate your pricing strategy. Use the strategies outlined below to learn how.
Increase the number of customers.
Evaluate consumer trends, are your products or services outdated or lacking cool features that would attract your customers?
Revise your marketing strategy. If your marketing analytics indicate that more customers are arriving at your website from a specific paid or unpaid social ad than another, focus on growing that segment. Attend community events or create events to promote your brand!
Evaluate your customer segments. Are you selling to whom you expect to or want to? Should you re-evaluate who your target customers are?
Extend the geographic market area. Are you selling locally, try selling in a different city.
Talk to all your customers. Current customers are an excellent source of feedback for what you’re doing right - get their input on what they love and where you can improve. Get feedback from failed customers, or people who didn’t buy from you, to figure out what went wrong and what you can do better. This feedback will help you create a better sales and marketing strategy to improve your bottom line!
Increase the average transaction size. Try to get each customer to purchase more.
Can you create product (or service) bundles or packages
Add complementary/recommended services to existing products
Increase the frequency of transactions per customer. Encourage customers to purchase from you more often.
Can you create seasonal or special occasion products (or services).
Add, reduce, or eliminate shipping and handling charges
Offer special coupons or discounts. Some different sale strategies are for quantity (15% of $100+), buy-one get-one, seasonal discount, loyalty customer.
Evaluate your pricing strategy. Do you want to raise your prices?
Collect more revenue from every purchase a customer makes.
Why is growing your revenue important?
Growing your revenue is an important technique to increase your overall profit. You need to increase your profits to continue having a successful business. Increasing your revenues means that your business is growing and that your sales and marketing strategy is working.
Profits or net income generally imply total revenue minus total expenses in a given period. Remember that your strategy to increase profits should always aim to keep your business expenses low and your revenue as high as possible!