Believe it or not, there are only four ways to increase your revenue:
- Increase the number of customers.
- Increase the average transaction size, i.e. upselling.
- Increase the frequency of transactions per customer.
- Raise your prices
I will mostly focus on the first way – increasing your number of customers. But first, remember that not all customers are ideal customers. If you’re spending a lot of energy serving customers who don’t buy very 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. The more ideal customers you can attract, the better your business. Be very clear on what they look like and where you will find them.
Here are 10 safe strategies for ramping up your revenue suggested by Jay Abraham, internationally respected marketing guru:
Strategy 1: Find other businesses that have the same target audience as you but are complementary, not competitive. Work out an arrangement with them where they introduce your non-competitive product or service to their client base.
Strategy 2: Find easy, low cost ways to form a relationship and develop trust with the target market for your new product. You might start a relationship with a special report on how your target market can get the benefit or result they are pursuing in their business or personal life.
Strategy 3: There may be companies that sell products or services that are sold concurrently, before or after yours. Offer to bundle your product or service along with it.
Strategy 4: Before you release new products or services, send out provocative article and press releases. Try to reach everyone of influence you can – magazines, newspapers, radio, websites, bloggers – to talk about your new product that will be coming available soon. Build anticipation before it comes out with a stimulating media campaign.
Strategy 6: Expanding your distribution sources can significantly boost your sales and revenues without requiring any changes to your marketing or pricing. Research the effects of using online selling, direct mail, wholesalers, retailers, distributors and outside sales reps to project how each method can affect your sales volumes, profit margins and total profits.
Strategy 7: Make sure that your sales team are trained on how to sell before you train them on how to sell your product or service. Train them in consultative selling.
Strategy 8: Make your sales team as effective and efficient as possible by helping them get leads. Don’t just leave it to them to figure it out.
Strategy 9: Study your competitors. Look at their advertising, their websites, social media etc. Look at their sales approaches. You have to know what the competition is doing to be successful.
Strategy 10: Constantly review your own business. Look at all the alternative products and services you are competing against. Look at your current business processes and operations. Don’t get complacent. The market keeps changing.
There is no silver bullet. No one strategy on its own will deliver results so you need to try a number of them.