The Revenue Growth Challenge: 7 Simple Ways to Increase Revenue
As business owners, we are always on the lookout for ways to increase revenues. Sometimes it takes an inward look to see not what you’re missing, but what you have that you can expand on or do better with that makes the difference.
Within your own processes, there are 7 ways to increase revenues.
- Make more sales: Look beyond your current customer base. How can you acquire more customers beyond the current demographic?
- Sell more often to the same customer: Can you increase the number of transactions with current customers? Reach them more frequently to encourage more transactions?
- Expand your product offerings: Can you expand your product or service offerings? What additional products or services will help expand your offerings and add value.
- Make bigger sales: Is there an opportunity to increase the size of your sales? McDonald’s capitalized on this with their “suggestive sell” with their frontline staff.
- Increase your prices: Easy to do, but you must justify the price increase with a perceived increase in the value of your offering. Upgrade your packaging, target wealthier customers, etc.
- Make more profitable sales: Look at the factors that pertain to your ideal customer. How large is the average purchase? How much servicing does the customer require? Of your products or services offered, which generate the most interest and are the most profitable?
- Reduce your selling costs: Look at your acquisition costs. What are the measurable returns on your advertising and promotion? Are you tracking your related costs accurately? If you’re not tracking your metrics, you can’t know how effective they are.
In the end, consider your IDEAL customer: Not every customer is a good customer. Some customers will sap your time, energy, and resources without providing the results that you’re looking for. If you’re spending a lot of energy serving customers who don’t come in often, have a low average transaction size, don’t spread the word, and complain about the price, it doesn’t make sense to attract more of those customers.
Always focus the majority of your efforts on serving your ideal customers and monitoring your metrics. Your ideal customers buy early, buy often, spend the most, spread the word, and are willing to pay a premium for the value you provide.
The more ideal customers you can attract, the better your business.