If you want your business to bring in more money, there are only 4 Methods to
- Increase the number of customers you serve.
- Increase the average transaction size of each customer.
- Increase the number of transactions a customer makes.
- Increase the prices of your goods.
Lowering your prices can increase revenues to make up for lower margins. Raising your prices can create a higher perceived value in the minds of consumers and increase your margins. Raising your prices can also increase your revenues without increasing sales.
Increase the number of customers you serve
One way to increase sales revenue is to serve more customers. The more customers you have, the more product you will sell. Assuming your sales prices remain the same, revenue will increase due to a simple increase in units sold. New client acquisition normally requires the most time, money and effort.
- Increase the average transaction size of each customer
- Another way to increase revenue is by increasing how much a customer buys in one single transaction. Upselling is a common way to achieve this. This sales method persuades the customer to purchase upgrades and add-ons to increase the profitability of a sale, without increasing the number of customers.
- Increase the number of transactions a customer makes
- Encouraging your customers to purchase from you more often is another way to increase revenue without using a lot of resources. Assuming your prices remain the same, you can increase revenue through an increase in units sold over the same time period, to the same amount of customers. This is achievable in several ways, such as increasing your minimum order size, or packaging products and services together.
- Increase the prices of your goods
- Assuming your prices, transaction size and amount of customers remain the same, you can increase revenue through an increase in price per unit. By repositioning yourself as a qualified expert in your industry you can target an audience more likely to purchase at a higher price. Some companies also offer tiered products that appeal to multiple buyer price points.
How companies use sales revenue results
Sales revenue is more than just profits and losses. Knowing your sales revenue allows you to examine the trends in your sales over a period of time. Understanding trends helps you understand your business. By analyzing customer buying behavior week to week, you can create specific sales strategies to target those customers and maximize your revenue.
Additionally, studying sales trends monthly can help you establish a relationship between your sales volume and seasonality. If you sell more units of one product during the summer months, you can develop strategies to increase the number of units sold or transaction sizes to increase revenue during that time.
How to create a sales revenue strategy
Here are a few simple steps to follow to create a revenue strategy that maximizes your sales:
- Assess your previous year of business.
- Create a clear profile for your ideal customer.
- Analyze sales, marketing, and production together.
- Think about expansion.
- Create clear revenue goals.
- Determine your marketing positioning.
- Develop a specific plan of action.
Determine your marketing positioning
Once you have a marketing plan based on your intended growth and target market, you can begin building a marketing strategy to position your company and your products/services correctly. Marketing, sales and product teams should work together to determine positioning statements, create buyer personas based on sales and market research and craft value propositions that meet each market segment’s needs and desires.
Develop a specific plan of action
To increase revenue, a well-thought-out plan must exist. An effective marketing strategy will maintain repeat customers and have an efficient sales process called “a funnel” that smoothly transitions people from leads to buyers. Each sales rep will understand their sales goals and know how to work the sales funnel to acquire customers and close them.