10 Strategies To Help To Grow Your Revenue
In the previous article where we used the example of a restaurant and we mentioned that there are only 4 methods to grow your revenue:
- Increasing the number of customers
- Increasing average transaction size
- Increasing the frequency of transactions per customer
- Raising your prices
Below we list 10 strategies to help you to increase your revenue.
Reach out to old contacts
Getting in touch with prospects where you weren’t successful in closing the deal can help broaden your opportunities. There is an art to getting it right. If the prospect explicitly said they weren’t interested, then you could be wasting your time. But if it simply wasn’t the right time, it’s always worth another try. Check your old notes and ensure data is up to date, ask lots of questions to gauge what has changed in their business, provide them with updates to the product or service since you last spoke, and share valuable content to remind them why they were once interested.
It is important not to overlook your existing customers when you are trying to grow revenue. Before you commit time and resources to finding new business, build on the relationships you already have. Look for opportunities to sell more to existing customers by offering them incentives for increasing business, upselling and cross-selling opportunities. If they currently buy competitors’ products that you can supply, offer special discounts to secure that business.
According to research, it costs as much as five times more to attract a new customer than it does to keep an existing one. Focus on customer retention marketing, selling product ‘bundles’ that work well together, as well as upgrades, so that every customer gets the best out of your business. Develop customer loyalty schemes, send regular communications, offer help and support, and remain the obvious choice for your customers.
Prioritize your conversion-rate
Measuring a sales funnel is a great way to work on improving your conversion-rate between each stage of the sales pipeline. The top of your funnel is the awareness stage, where your brand is getting noticed. The middle is the consideration stage, where qualification and nurture take place. Finally, the bottom of the funnel is where leads turn into customers. This is a visual reputation of your pipeline conversion-rate. Your business will have more opportunities, or leads, at the top of the funnel than at the bottom. Your goal should be to increase the number of leads that convert into customers.
Expand your market
By increasing the number of leads you add to your sales pipeline, you increase the number of opportunities you have to generate business revenue. So, why not identify markets that could benefit from your products and services that you haven’t yet targeted? Conduct research and look for gaps in the market — consider new demographics, locations or sectors and tailor your marketing and sales approach to meet their needs. Undertake a segmentation strategy to spot smaller industry segments you could reach out to, update your content marketing material, add relevant case studies and dedicated landing pages to your site and create targeted digital ads.
Winning new customers is important for growing revenue and for protecting your business against losses from competitive activity or natural wastage. Set up a formal process for contacting prospects. Set targets for sales representatives or telephone sales staff to contact new prospects. If you have sufficient budget, run advertisements in trade or consumer publications that cover your target market. Include a response mechanism in the ad, such as a reply voucher, email address or telephone number, so that you can capture contact details when prospects reply.
New products help you increase sales to existing customers and open opportunities to earn revenue in new market sectors. Although you should plan to develop your own new products over a period of time, you can increase your range in the short term by sourcing suitable products from other companies. Look for products that complement your existing range. Companies that sell garden tools, for example, can increase revenue by sourcing and marketing garden care products.
You can increase revenue by developing variations of your existing products. Companies that market computer software, for example, offer consumer and professional versions of products such as word-processing or accounting packages. Adding or removing features from the same product is a simple way to create products for new markets without investing in product development. Changing pack sizes can also open new market opportunities. A company selling household cooking products could repackage products in bulk to win business in the professional catering market.
Increase Your Sales Velocity
Sales velocity is a helpful sales pipeline metric that helps businesses measure the effectiveness of their pipeline. It is a simple equation that requires four numbers to work out — the number of opportunities in your pipeline, your average deal size, your conversion-rate, and the length of your pipeline.
Sales velocity = number of opportunities x average deal size (€) x conversion-rate (%) ÷ pipeline length (days)
The result you get is your sales velocity — this is roughly the revenue you generate every day. To increase your sales velocity and, in turn, grow your revenue, work on improving one of the numbers at a time. Increase your top-of-the-funnel opportunities, grow your average deal size, boost your conversion-rate, or reduce the length of your pipeline.
With the right incentives, your sales force can help you grow revenue. Structure your incentive programs to concentrate the team’s efforts on making sales to new customers or selling new products to existing customers. If you sell products through retail outlets, offer the sales force incentives for opening new retail accounts. If you use social media and have a website, make sure your digital team have KPIs (Key Performance Indicators) linked metrics such as increasing conversion (more customers), sales growth and frequency of purchase.
Embracing technology is an investment — but when it comes to growing revenue, it’s all about your ROI. Including the right tools in your strategy from the outset can make all the difference to your pipeline. Whether it’s to align teams, manage data more effectively, automate, improve or streamline processes, innovative technology is a must. From customer relationship management (CRM) software, customer service automation, to website personalisation and lead generation software — there is a perfect tool to help your business generate more revenue.
There are good outsourcing opportunities if you don’t have inhouse expertise to introduce automation technology, in the LinkedIn Group The Beauty of Outsourcing you can find some inspiration.