This guide outlines strategies you can use to increase revenue in your business, no matter what size it is.
Increasing revenue and valuing the company in the market are the biggest challenges for every entrepreneur. But as great as the will is the difficulty in putting it into practice. The market is competitive and companies are looking for ways to leverage their revenues every day. In the face of so much competition, winning new customers is a mission that requires the creation of differentials and requires a lot of investment.
Does this mean, then, that the entrepreneur who does not have the capital to attract new customers cannot increase his income? No. The good news is that there are some ways to increase the company’s revenue without necessarily having to increase the number of customers.
If your business isn’t adequately providing for your needs, or is in fact taking more away from you, it is never too late to make the necessary changes to increase revenue. No matter what stage of business you’re at – start up, growing or have a well-established business – it is always a good time to get clarity over your numbers and adjust your business model to make it work for you.
A common mistake I see when people are looking to increase revenue is that they go straight to trying to increase their number of leads. By default, and lack of business education, lead generation is where most business owners consider they can make the biggest difference in their business profits. They think that if they have more customers, surely they will make more money, right? Not necessarily. This is normally the last place I recommend focusing on to increase revenue because it generally costs money to generate more leads and it doesn’t guarantee a higher profit in the business.
Tactical ways to increase revenue
If you know you need to increase revenue but not sure how, here are my top ways to build your revenue that I have seen successfully implemented in my own business, as well as with those I have worked with.
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Increase your conversion rate to increase revenue
Do you know how many leads you’re getting in – per day, per week, per month? How many of those are successfully converting to sales? The first step to increasing something is knowing where you’re currently at, so if you’re not tracking & measuring your leads, this is the first step.
Next, look at what you can do to improve your conversion rate and thus increase revenue. You might want to look at improving your phone script, implementing a better quoting system, being more efficient or timely with your sales process, sending better educational material out, or training your sales team.
Consistency is key to increase revenue; If you consistently market your products and services with a consistent message, if you consistently follow your sales process and deliver the same great customer service, and if you are solving your customers’ needs, you will build a rapport and improve your reputation. A better reputation = a higher conversion rate.
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Increase average dollar sale
Of the sales you’re currently getting, what strategies do you have in place to increase each customer’s average dollar sale? There are many different opportunities to do this; through upselling, educating your team and customers, and providing something superior to your competitors’ products or services.
Upselling to increase revenue is about offering something else to your existing customers when they purchase from you. McDonald’s well known phrase, “Would you like fries with that?” is a famous strategy that would have increased their average dollar sale, increasing their total revenue by millions and millions of dollars all over the world. Most businesses have fries of some kind – a little extra ‘add on’ their customers can buy with their purchase that will enhance the product they’re already buying.
What can you suggestively sell as an add-on to what your customers are already buying, that will increase the value of the sale and thus increase revenue? If you can upsell to the clients who already buy from you (and trust you), it’s far easier than getting brand new customers. For every sale you make that is higher in value, your average dollar sale will increase and your revenue will grow. A small increase to each sale, compounded over one year, can make a huge difference to your bottom line.
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Increase number of transactions
Having a repeat business culture will help your business to continually generate consistent sales revenue in the future to increase revenue. How can you get your customers to come back, over and over again? The more times a customer returns, the more revenue you will make.
What do your customers want, and are you doing everything you can to provide that? Is your customer service up to scratch? Are you providing friendly service to your customers, and treating them like royalty? (After all, they pay your wages!) Building relationships with your existing customers will mean they’re more likely to come back as they build trust with you.
Another (often forgotten) method to increase revenue is following up with your customers. Were they happy with their product or service? Do you have a follow up system? Do you follow up their buying cycle? Just imagine if you increased your number of transactions by just 1%, how much would this increase your revenue long term?
Conclusion
There are several tools and strategies that help to increase a company’s revenue without necessarily gaining new customers. Even because the increase in consumers does not mean financial growth. If you really want to have happier customers and higher profits, understand your audience, build rapport and build loyalty, make sure your team delivers the best possible service, and test to see which strategies work best.
These three strategies can each dramatically impact your bottom line, without any additional marketing, leads or customers through the door. However, if you don’t map out and track your financials, you won’t be able to identify the gaps, ascertain the actions required to bring you closer to your targets, or see where your actions are resulting in the desired outcomes. Financial success doesn’t happen magically – you have to plan it, strategize it and work for it.
