How to increase revenue in your business
Whether your business is in its first few years of operation or you’re an established SME, it’s never too early or late to look at ways to increase your business revenue.
Increasing sales are the single most important activity for any company, but knowing how to do so can sometimes be confusing, time consuming, and even costly. Which is why we’ve put together a list of strategies to help increase revenue without impacting on the cost of production.
Expand your offerings
Adding complimentary services or products is a great way to entice new clients, as well as showing existing clients that you go the extra mile. This can be anything from adding additional products such as safety goggles if you sell products that require PPE to operate safely, or perhaps if you’re a beautician adding a complimentary facial with a massage. The additional cost of these products or services is negligible, but this something ‘extra’ will set you apart from the competition.
Look at new locations
Many small businesses limit their market reach by servicing one local area. You could easily expand your market by doing research in similar areas nearby to see if there’s a demand for your product or service.
It doesn’t have to be that you open a physical store, in fact with more people than ever turning to buying products and services online, updating your website to improve its rankings, and expanding your delivery destinations could easily – and quickly increase your revenue.
Reassess your pricing strategy
Price is the single most important factor when consumers choose whether to buy something. A low price can either represent a bargain or poor quality, but price your product or service too high, and you could end up pushing your customers towards the competition.
Before implementing your pricing strategy, it’s important to get your customer’s feedback. You should find out how they feelabout your product – and this will encourage brand loyalty. Periodically, you should also look at the pricing strategies your competition is employing – but don’t be drawn into a pricing war with them – as you could end up undercutting your margins.
Create a rewards scheme
Reward schemes work because they make customers feel recognised and special – which leads to retention, referrals, and of course profit. Rewarding your customers for their loyalty and engagement with your brand can help distinguish you from your competitors.
There are a number of different rewards schemes, including points-based programmes, tiered systems which rewards loyalty and encourages more purchases in order to unlock new levels, and VIP member clubs.
Think about which scheme would suit your business model and look at implementing it over an initial 12-month period to monitor it’s success based on KPIs you set.
Collaborate with other businesses
If you’re an independent business, you can partner with other local businesses in your area. Not only will this help you attract a new set of clients and open you up to a whole new market, but you can offer additional products or services with minimal cost.
It’s no secret that consumers are turning away from large conglomerates in favour or shopping local – and in doing so helping to save their community. Look at local businesses that mirror your brands ethos and explore a partnership with them.
It could be that you own a local greengrocer, and there’s an amazing local designer who could create some custom tote bags for you. You don’t need to be in the same sector to work together. Be creative and build a community residents want to engage with.
Accept different payment types
Over the last few years, we’ve seen a rise in card payments and a decline in cash. Where once customers wanting to pay on credit card were charged extra, these charges are nearly unheard of. If you’re one of only a few merchants who aren’t embracing the cashless society you could be missing out.
And it’s not just credit cards and debit cards, there are a number of different payment schemes you could implement including QR code pricing, KLARNA, PayPal, Amazon Pay, Google Pay, and Apple Pay.
Create new marketing strategies
An obvious way to improve sales and boost revenue is through marketing. Start by analysing where your customers are coming from and focus on those channels. Once you have identified your main revenue source you can create targeted promotion to hit specific customers with ad messages and promotional offers.
