Generating revenue, while no easy feat, is top of mind for large organizations, small businesses, and sole proprietors alike. However, dreaming of large profit margins without any strategy to sink your teeth into will always yield lackluster results.
While a slew of strategies can find their way into your team’s quarterly and annual meetings, here are five tips to turn down the noise and help your business jumpstart the journey towards revenue and growth.
Increase marketing to target qualified leads
Not every buyer is your ideal customer, and continuing efforts towards these individuals might end up zapping your team of precious time, energy, and resources. If you continually place energy on individuals who infrequent your business or complain about your products any chance they get, your team will have no gas in the tank for leads that are guaranteed to increase your company’s ROI.
The more ideal a customer you attract, the better the odds of that customer buying soon, purchasing often and spreading the word of your company’s value to other like-minded consumers.
Review your pricing strategies
Evaluating your pricing strategy can go one of two ways. If you find yourself coming up short next to your competition’s lower pricing structure, it might be a good idea to adjust your strategy to place yourself on the same playing field. However, that being said, a higher pricing structure can also represent a higher perceived value on your product or service offerings. And, if transaction size and frequency of purchase remain the same, adjusting your offerings with a higher price point can immediately increase your business’s revenue at no added cost to you.
Still not sure raising costs is the best practice for your business? By considering a few alternate routes, your company can introduce higher prices without overwhelming your consumer:
- Increase associated fees: This method works best if your product is associated with raw materials, such as fabric obtained overseas. However, keep in mind if the price of materials drops, the customer will expect fees to decrease accordingly.
- Add value via product or service bundles: If your company sells products, like software, you can provide longer customer support hours or an extended warranty at no additional cost.
- Grandfather current customers: You can grandfather existing customers in with your current pricing model and increase rates with new customers. This not only increases your company’s revenue but also adds value to your business by making the grandfathered customer feel as though they are receiving preferential treatment for being dedicated customers and advocates of your brand.
Reevaluating your distribution
Changing your distribution channels requires careful planning and support from your marketing team; however, this practice can potentially increase your revenue without requiring changes to your pricing structures. By deliberately evaluating your current channels, you can assess which avenues strengthen your total profit margins, and which lines are better left behind.
For example, if your business currently only offers products through local retailers, sales reps, and direct mailers, it might benefit your company to branch out to wholesalers,e-commerce, and other lines of distribution.
Evaluate your offerings
Diversifying your products and services is generally the most beneficial to companies that are in a saturated industry and are also mature in their development. Evaluating your offerings requires cohesion with your marketing department to assess the needs of your buyer personas.
While expanding your portfolio might mean introducing new and innovative products, it can also mean rebranding or replacing older products with their updated counterparts, or even eliminating offers that aren’t generating any revenue, altogether. In doing the former, you might notice an initial decline in sales; nevertheless, this is generally followed closely with an increase in revenue due to the newer product possessing a higher price tag.
Explore new relationships
Cross-promoting your products and services through different channels is a low-cost solution to increase your business’s revenue. Partnering with organizations that are not in direct competition with you yet have similar target demographics can maximize your value and ROI.
For example, if your company sells sports recovery drinks, you can sponsor local fun runs and sporting events within your community. You can also have individuals promote your products through a social media influencer or ambassador program that builds value and can generate a more substantial following through like-minded association.
As much as we wish successful, high-revenue generating companies had a formula that we could all easily replicate, the fact of the matter is that success comes by way of strategy, implementation, analysis, and reinvention. Never stray from asking yourself the hard questions: Is this working for us? Is this working for my consumers? How can I make my products or services better?
Business problems are stressful, and we know that because we’ve been there. Schedule your free consultation to see how Primitive Social can help your company develop a solution to get out of the chaos and on to the fast track to success.