As every entrepreneur knows, you can't run a business on ideas alone. Revenue is king—and great business leaders recognize that they must always keep one eye on the bottom line.
But how do you ensure that your business keeps growing? And what can leaders do to open up new income streams?
We've enjoyed working with solid and effective businesses that consistently expand their reach and increase their revenue quarter to quarter. The secrets to their success are simple strategies that, when well executed, can help any business grow its profits and thrive long term.
To help budding businesses boost their numbers and grow their organizations, we've rounded up five top lessons from our partners for increasing your revenue streams.
If you're looking to boost your revenue, first look to your existing customers. Don't be afraid to dig deep into your customer database or client list to follow up with people who have previously enjoyed your work.
This approach is practical because it requires significantly fewer resources to reach out to existing customers than it does to reach new people and move them down your sales funnel. It cuts down on advertising costs and saves your sales team time. Plus, your current customers have already demonstrated interest in the product, so the likelihood of a sale is much higher than the chances of converting a cold lead.
What are you waiting for? Crack open your customer database and follow up with previous buyers. You may be surprised by the rate of success you see from this tactic.
Add new products or services
The best way to guarantee repeat business? Offer new products or services so that customers have a reason to keep coming back for more. Not only do new offerings retain existing customers, but they also have the potential to generate brand new business from people who may not otherwise have engaged with your company.
If you're unsure what types of products would be most effective for driving additional revenue, look to your customers for direction. Both formal feedback from surveys, online reviews and informal feedback from customers can provide valuable guidance for your next move. Pay attention to what your customers are telling you. What are their needs? How do they use your products? What pain points do they identify that you can solve?
The best revenue-boosting new products are those that build on your existing offerings without adding high marginal costs. When deciding on your next move, consider what you can provide using the processes, materials, or human resources you already have available.
Offer discounts or rebates
Discounts and rebates are a tried-and-true tactic for boosting revenue. A discount provides an incentive to spend more than they typically would for existing customers, knowing they are getting a great deal. To encourage loyalty to your brand, consider offering markdowns to recurring customers and customers who select more extended contracts, add-ons, or larger packages.
Discounts also present an opportunity to entice new customers to sample your product or service. Many potential customers may not have considered purchase at the regular price point but could be persuaded to give it a go at a reduced rate. Often, such sales or rebates result in new buyers who become loyal customers in time.
Light a fire under your sales channels
When was the last time you evaluated the efficacy of your sales department? If the answer is "never" or even "not for a while," then it might be time to give it a good hard look. The sales department's processes and systems directly impact your people's ability to perform in their roles effectively, and those functions are critical to your bottom line.
To give your sales team a boost:
- Complete a full evaluation of your current systems.
- Identify the channels that are working well, and double down on those methods.
- Identify which channels are struggling and determine what can be done to improve their performance.
Suppose something is not working at all, such as a specific paid marketing campaign or sales region. In that case, it may be time to consider cutting it all together and investing those resources elsewhere.
Technology can make a tremendous difference here. Don't forget to evaluate your teams' current systems to ensure they have the best software for their sales processes. When your people have what they need to succeed, the sales will follow.
Build up your digital presence
Never underestimate the importance of brand awareness for driving revenue. If your company isn't investing in its online presence, you're leaving money on the table. In an increasingly digital world, online branding is cost-effective and impactful to increase awareness of your products or services and differentiate your company from competitors.
Every organization is at a different phase of its digital branding journey. If you're at the beginning, it may be time to build your company's very first website or launch social media channels. If you already have the basics, take your digital branding to the next level by generating high-quality digital content or boosting online engagement with customers. Just by ensuring that your brand is more present and active online, you build trust and promote awareness of who you are and what you stand for as a company.
Remember, this tactic takes time to take effect. However, generating awareness is a critical first step to engaging a new segment of future customers online.
With these five steps, you're doing more than simply boosting short-term revenue. The tactics we've outlined are a framework for building robust and sustainable growth that will drive your business forward.
By engaging existing customers and rewarding them with discounts and rebates, you create loyal partners for years to come. And by expanding your offerings, investing in your sales channels, and building up your digital footprint, your company is investing in its future, building up a strong, resilient brand that will thrive for years to come.