Sales remains the most important factor to the growth and survival of any business. If people aren’t buying, revenues don’t get generated. To increase revenue means to increase sales, especially at the lowest cost possible. While some businesses generate high revenues, most generate far lower revenues. But the most important factor for every existing business is to increase revenue. Revenue increments define how a business is growing. The previous month metrics versus the next month. The previous year’s versus the next year. If your revenue remains on a positive track at a low cost of acquisition, your business is growing.
The key concern with most businesses is how to grow their revenues. With different marketing strategies executed periodically, many executives and business owners constantly hit grid locks with their plans. Rather than a positive increment, their estimates mostly follow a negative route. While creative solutions play important roles to the success of any revenue projection, there are some surefire ways to immediately increase your business revenues today.
Here are seven ways to increase your customer purchase size, purchase frequency, and subsequently increase revenue:
1). Raise Your Prices:
One way to raise your revenues, is to raise your prices where appropriate. Prices change constantly because of different factors ranging from higher manufacturing cost, higher shipping cost, inflation, and a lot more. Explain to your customers the factors affecting the price increments and how you intend to mange them better. If your sales remain the same while your price rices, your revenues would rise.
2). Offer Special Discounts:
Everyone loves a good old deal. If a frequent customer realises that he/she could get a special discount for buying an additional item, they’d most likely take the deal. Rewarding your customers with mouth watery incentives, discounts and more, would motivate them to shop more frequently.
3). Up-Sell Your Products/Services:
Identify one of your products or services that your customers are happy using. Research what other benefit they’d love to experience, then create a better, more concise premium version of that service that encompasses a lot that would make your customers totally satisfied and give them better results. Educate them about this new product or service and how it would better satisfy them. For every customer that signs up for the upgraded service, you increase your revenues.
4). Cross-Sell Your Products/Services:
Inform all your customers about all the products and services your business offers. Then constantly recommend other products or services you have for different problems they are experiencing. For example, if a customer mostly purchases only cars from you, you can inform them about a car security product you also sell that would solve their security concerns. By cross selling your products and services, you increase what your customers buy from your business and your revenues grow.
5). Offer Complimentary Products/Services:
Identify what products can perfectly go along with what your customers already purchase from you and provide them for sale. By understanding what your customers get before, along, and after they purchase your products or services, you can acquire those same items and offer them for sale to them at a lower price. This way, you cut off the pre and post purchase of your customers from other vendors and maximize your revenues. Offering complimentary products/services is a great way to increase revenue.
6). Bundle Products:
People are always tempted to make a purchase when they feel they are getting more for less. Bundling complimentary products together at a lesser cost and offering them to your customers will concurrently increase your sales. For example, instead of costing a website design job for 200,000 Naira ($667), logo design for 25,000 Naira ($83.4), Banner designs for 30,000 Naira ($100), complimentary card design for 40,000 Naira ($133.4), you could bundle them all up together and offer the full package to your customer for 250,000 Naira ($833). This saves them 45,000 Naira ($150), and would better motivate them to act on the purchase. Bundling right always increases revenues.
7). Increase Your Customer Base:
You can increase your customer base by running ad campaigns or expanding to a different geographical location. By limiting your location to your current business environment, your small business revenues will maintain a slow growth rate or possibly decrease. More customers result into more sales, which subsequently translates into higher revenues. By having branches in surrounding cities, you expand your reach.