Four Methods to Increase Your Revenue
When many business owners think about increasing their revenue for the year, the method that comes to mind right away is getting more customers to buy their products or services. While this is one way to do so, there are several other ways that may be more beneficial for your company.
1.) Raise Your Prices:
You may be surprised to find out that you are undercharging for your products or services. Many times when owners raise their prices, they find out that it was not as bad as they thought. You will lose some customers, which is ok, sometimes it is better to let go of the lower paying clients. When you go about this tactic, ask yourself, “What would happen if I raised my prices 10%? 20%? 50%? Or even doubles my prices?”. Think about if there is market to sustain these new prices. What would you need to do from a customer experience standpoint to ensure that their experience is congruent to the higher prices? From experience, I can tell you this; don’t be afraid to raise you prices.
2.) Increase How Much a Customer Buys From You:
If you can increase the average ticket size of each transaction without decreasing the frequency that they buy from you, this method will help you increase your total revenue. One of the popular ways to take advantage of this is to offer an upsell; this does not need to be sales-y, just offer something that would go well with what they are already buying. Think of the, “Would you like fries with your burger” concept when creating upsells for your company.
3.) Get Your Current Customers to Buy From You More Often:
This one may sound too simple, but I’ve seen many business owners overlook this. The people that have already bought from you know how great you are, and would be happy to buy again. It is much easier to get them to buy from you again than to get a new customer. Send them a reminder occasionally to let them know you are here to help. Make sure that you are top of mind, when your customer thinks about someone in your industry. Another way to use this method is to build in a recurring model into what you already sell. Your main product or service may not be something that can be done on a recurring basis however, I’m sure there is something goes with that product or service that could be done on a recurring basis.
4.) Get More Customers:
There are two main ways to go about this; inbound marketing, such as content marketing, optimizing your website for search engines, and social marketing - and outbound marketing, such as direct mail, email marketing, and events. Inbound marketing tends to be the best long term solution for getting new customers as you are typically helping potential clients before they even buy, building the connection. Compare this to outbound marketing where you are basically trying to yell the loudest, “Pick me, pick me!”, which one do would you prefer as a customer?
Another great way to get more customers, outside of marketing, is referrals. One of the simplest ways to do this is to ask your customers if they know anyone else that would benefit from your product or service. Referrals are going to be the warmest leads you will get as a business. Many times, they are ready to buy right out of the gate.
Armed with these four methods to increase your revenue, go out and take action. Give one method a try and see how it works for you. Imperfect action out performs inaction.