20 Strategies To Increase Revenue
Increasing sales and revenue is a high priority for most companies. Focusing on your customers and how they respond to different sales and marketing strategies can help you decide how best to increase sales and revenue. Your marketing and advertising campaigns can attract new customers and maintain current ones, boosting your profits. In this article, we explain how you can increase the revenue and sales and ways to make sure that revenue helps you achieve your long-term goals.
What does it mean to increase revenues?
Revenue is the amount of money that a business brings in, including income from sales and any additional income from bank interest or investments. A company can increase its revenue by increasing sales, adding other sources of income and increasing the amount of money that each sale produces.
Related: What Is Revenue? Definition, Types of Revenue and Examples
What does it mean to increase sales?
Sales refers to the number of items or services that a company sells, so increasing sales means customers are buying more products. A company can increase its sales by reaching more customers, convincing customers to buy more often, improving its marketing strategy, offering prices that fit the market well and maintaining good relationships with customers.
How to increase revenues and sales
Here are 20 different ways to increase revenue and sales as a marketing or sales professional:
1. Set defined goals
Make quantifiable goals for how much you want to increase your sales and revenue. This way, you can decide how to approach your goals and which methods you'd like to use. You can also use these goals to motivate you and your sales team by tracking your progress and accomplishments.
2. Target repeat customers
Cultivate the relationships you have with dedicated brand customers. Increasing communication can remind your customers of your store and control the message that they receive. Consider reaching out by email or text to promote sales or inform them of new inventory. Many email systems also allow you to review metrics, like the number of recipients who opened your email or clicked on a link, which can help you determine how effective your communication choices are.
3. Target former customers
Bringing back former customers sometimes takes less effort than bringing in new customers. Maintain a marketing plan for former customers so you can target them differently than your current customers. You can appeal to them with specific incentives, like a discount for those who bring in outdated items when they buy a replacement or upgrade. Former customers can also give you referrals or reviews that bring in new customers.
4. Grow your geographic reach
You might expand physically by opening a new location. You can also expand the geographic range of your customers by increasing the distance you can deliver or provide services or adding advertisement initiatives in neighboring areas.
5. Refine your pricing plan
To increase revenue while maintaining the same number of sales, reevaluate your pricing plan. You may sell more items by lowering your prices and taking market share away from your competitors, or you could raise your prices if your brand is strong and customers believe in the value you offer. If you offer a subscription service, you might offer a pricing structure with just a few tiers to appeal to customers through a simpler shopping experience.
6. Add products or services
One way to increase the number of sales per current customer is to offer more products that your customer needs. You can consider adjacent products that a customer would buy to use with your product or a service your customers might need. For example, if you have a specialty pen company, you might offer notebooks and stationery too.
7. Bundle products or services
Bundling products can encourage your customers to purchase more because they can save money by purchasing more than one item at once. You can bundle internally by packaging items together and marketing them as a set, or you could offer a discount when customers buy multiple items together.
8. Upsell products and services
Adding a specific plan to sell higher-priced products can help you transform a single sale into a more valuable transaction. Displays and informational materials can help with this by showing a more expensive or upgraded option first and emphasizing its benefits over less-expensive options.
9. Add new payment forms
You may be able to increase sales by offering new payment methods that customers find more convenient. Check which payment forms the leaders in your industry are using, then set up any infrastructure to accept whatever you don't currently, whether it's credit cards, a cash exchange app or secure quick pay options.
10. Offer delayed payments
You could see increases in sales by offering a delayed payment plan, like a layaway program or installment plan. Installment payment plans appeal to customers by showing lower monthly payments rather than one large sum. For example, a furniture company could offer an installment payment plan for a $500 couch, where the customer pays 10 installments of $50 each.
11. Change shipping or delivery charges
Some customers may be willing to pay more for a product if the shipping and handling is free. For online sales, you might consider ways to build shipping and handling costs into the overall cost of the item instead of including two line items in the price. If you deliver products locally, you may be able to try the same method.
12. Offer subscriptions
You could generate more sales by offering a subscription service and reminding people to buy a new product regularly. Consider offering a discount if a customer subscribes to regular replacements or refills, which can automate sales for you and help the customer save money.
13. Offer discounts, rebates and coupons
Perhaps the most classic method to generate increased sales, offering discounts, rebates and coupons can help bring in new traffic and generate a feeling of achievement for customers. Discounts and coupons generate customer loyalty and repeat purchases by allowing customers to try new products that they later buy at full price. Rebates have a low rate of fulfillment, so you may not have to take the rebate's cost off of the revenue from every item sold.
14. Create special incentives
If you have regular communication with your customers, you can use any occasion to build loyalty by offering holiday sales, birthday rewards and discounts or registries for special occasions like weddings or births.
15. Survey customers to understand your market
It's important to know your customer base well, so consider offering a survey to find out your customer demographics. When a customer makes a purchase, you can ask them to fill out a short survey that can help you define your target audience and refine your marketing strategies. You can also send surveys to potential markets through social media or online ads. To encourage people to fill out your survey, you can offer a discount or the chance of winning a gift card.
16. Keep sales channel current
Regularly update your sales channel, including your online presence and your in-store displays. Even if consistency is a strong appeal of your brand, consider ways you can make each visit or sale new for the customer to generate curiosity about later purchases.
17. Change sales incentive structure
Changing your incentive structure for your salespeople can increase sales numbers by making your sales team more motivated. Finding new metrics or rewarding different kinds of sales numbers can inspire your sales team by giving them a new challenge. You might consider inverting your commission plan to give higher incentives to a certain group or offering bonuses for achieving goals within a certain amount of time.
18. Develop a public reputation for quality and expertise
Consider building your brand's public reputation for quality or your team's reputation as experts in the field. External endorsements by magazines and public figures can introduce your product to new customers, and if you are willing to create your own podcast, book or informative articles, you can build up a reputation of providing value to your customers in multiple ways.
19. Develop a reputation in your industry and community
Being active in professional organizations can help you grow your visibility and can be particularly useful for business-to-business sales. As a prominent figure in the industry, you can also build partnerships with other businesses to offer shared promotions or build a common customer base.
20. Review your online presence
Optimize your website for sales instead of clicks by determining which search terms and website design aspects are actually bringing in sales. Consider how you can optimize your site or rewrite your online copy to maximize those attributes.
Tips for implementing sales increase strategies
As you implement strategies to grow your company's sales and revenue, it's important to think about your larger goals. Here are some ways you can use sales increases to your best advantage:
Know the cost of sales
The cost of sales, or cost of revenue, is the amount that a company pays to produce and store a product. If the income that the product generates is close to the cost of sale, that product's profit is minimal. As you choose to offer discounts and rebates, knowing how much you can discount without taking a loss helps you decide where to set prices.
Read more: Cost of Sales: A Definitive Guide (With Example)
Keep long-term goals in mind
Increasing sales and revenue can be a powerful tool to grow your business. As you work to reach new customers and produce new products, think about what your long-term goals for your business are. Look for the kind of customers who are buying what you want to offer in five or 10 years, and work toward the buying experience that attracts them.
Related: Strategy For Growth: 10 Effective Methods for Businesses
Track revenue and expenses
Record your revenue and expenses regularly and compare that to your budget and projected costs. Seeing how well you meet your goals can help you understand whether you are meeting your goals and can set higher ones or whether you could consider modifying your revenue increase methods.
Related: Bottom-Line Growth vs. Top-Line Growth: What's the Difference?
Invest back into your business
As you produce more revenue, consider how it can help your business grow, putting it into savings or investing in equipment or real estate that could give you more opportunities. Passing this revenue along to employees as bonuses or pay raises can also increase morale and employee loyalty.
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