As a small business owner, you know that revenue is essential to the success of your business. But how can you increase revenue without breaking the bank? Here are a few tips:
Focus on your existing customers
Your existing customers are your most valuable asset. They know your business and they’re already familiar with your products or services. Make it easy for them to do business with you by offering loyalty programs, discounts, and other incentives.
This is true even if what you’re selling is an single subscription service. Offer access to experimental features or exclusive tools. There are some things that may be easy to implement that you wouldn’t think off-hand would drive someone to stay loyal.
For instance, in 2013 when Apple started offering iPhones in different colors, opinions were mixed, but ultimately, it appears to have paid off (as Apple continues to do it) and its become normalized. Having a modicum of self-expression can retain customers more than you think, so even if you’re selling a single subscription model product or service, consider offering users the ability to change their avatar or customize their dashboard. Small (and inexpensive) offering can do a lot for your customer base.
Upsell and cross-sell
When a customer makes a purchase, don’t just let them walk out the door. Offer to upsell them on additional products or services, or cross-sell them on products or services that are complementary to what they just bought.
If there’s nothing at your disposal, consider your company’s possible role as an affiliate lead. This can help your company network B2B and potentially pivot to the business to new offerings if your customers and the other business share an audience.
Bundle your products and services
Everyone’s familiar with the Henry Ford quote, so we don’t need to retread the same ground here. The point remains, customers don’t always know what they want until they have it in their hands.
By bundling your products and services together, you can increase your average order value. For example, you could offer a package deal that includes a product and a service, or you could offer a discount if a customer buys multiple products or services.
Increase your prices
If you’ve been in business for a while, your prices may be below market value. Consider raising your prices to reflect the value of your products or services.
Now, don’t do this recklessly. As already mentioned, maintaining your loyal customer base is essential. There’s a few different ways to do this.
- Only increase prices for new customers
If you can afford it, only target new customers. This enables you to satisfy your existing customers who get a deal comparatively, but it also offers them an incentive as the risk for leaving is only to return at a higher price point.
- Communicate effectively
The main other way to handle this is increase your prices for everyone but communicate CLEARLY and often what you’re doing. Companies that make it clear, they’re underselling enables users to recognize there isn’t a cheaper alternative. The other benefit is, if you communicate clearly, early on, then you give people ample time to understand the decision you’re making and given them breathing room — especially if you’re increasing prices significantly.
Note that either move is best done with clear messaging and marketing, which brings us to the next point.
Improve your marketing
Make sure that your target market knows about your business and what you have to offer. You can improve your marketing by investing in advertising, creating a strong online presence, and attending industry events.
One of the main problems small businesses face however is advertising to other businesses. Many celebrate the businesses’ success or write press releases promoting the health of the business. This is great fuel for potential investors, but in terms of growing your customers, it matters less than having a third-party endorse your product or service.
Essentially make sure you’re marketing to your customers and not other businesses.
A disorganized business is a recipe for lost sales and revenue. Take some time to get organized by creating systems for tracking inventory, managing customer data, and processing orders.
This is something a CFO or CPA can help with. Often small business owners are missing out on making the proper investment in their business supplies and products. When it comes to raw time and effort as well, some business owners are still spending hours doing their own payroll. When you finally track the hours and what your time is worth, often it’s more financially sound to outsource some of these tasks to others.
By following these tips, you can increase revenue for your small business and improve your chances of success.