Business revenue is the money the business makes over a set period before expenses are subtracted. Revenue is generated by selling goods and services, earning interest on investments, or other core operations. Increasing business revenue is a key way to drive profits. To be a successful business, it’s important to find workable strategies to increase business revenue and, therefore, profits.
In this article, we’re going to look at the simplest ways to achieve this.
Target Existing Customers
Finding new customers is resource intensive. It’s a lot easier to concentrate your efforts on existing customers since you already know they are interested in what you sell. The likelihood of a sale is between 60% and 70% when you target an existing customer, compared to 20% or less with a new customer. Not only can you sell them new products, but they’ll also be receptive to upselling and cross-selling.
There are several ways to target existing customers. Offering discounts is a tried and tested way to encourage people to make repeat purchases. Email marketing is inexpensive and can yield excellent results, but it’s important to segment your list so emails are better received.
Loyalty campaigns are equally effective with B2C and B2B customers. B2B loyalty software such as this one helps businesses segment and target customers using specific campaigns via SMS, email, and an onsite inbox.
Review Your Prices
It is worth reviewing your prices regularly, to ensure you are charging enough for your products or services. However, be careful not to raise prices across the board without testing small increases first.
If demand isn’t there or your brand is perceived as too expensive or charging unfair prices, it will negatively impact your brand and, therefore revenue. That said, if your expenses have increased, as is the case currently with the high cost of utilities, it is sensible to increase prices before your revenue and profits are impacted too badly.
Review Profit Margins
Markets change all the time. What’s in demand now might not be in a few months. Continually review your product ranges and work out the profit margins for each item. If profit margins fall, either because supplier prices have increased or demand for that product has fallen, decide whether it’s worth increasing prices or removing it from your inventory.
Identify New Products
Carry out regular market research and monitor market trends. You might be able to identify new products in a less saturated niche. If you can beat your competitors and stock items before anyone else, it’s an excellent way to generate significant revenue when demand is high.
Incentivise Your Sales Teams
Revenue will increase if your sales teams are working harder, but they won’t do this without incentives. Offer bonuses to employees hitting their targets, so they are incentivised to go the extra mile. Your best-performing sales teams should always be rewarded, as they are a valuable asset to the company.
Increasing business revenue requires a multi-faceted approach. Pour resources into tackling each area on this list and you’ll see dividends in no time.