How to Maximize your Business Revenue in 2018
Are you in business and you want to excel in 2018? Business performance is a similar analogy to a drinking straw. When you suck a drink up, the atmospheric pressure pushes the liquid up the straw. When you stop sucking, no fluid goes up. To have your business revenue move up, you have to do something to effect upward movement.
Thus, there are two directions in business. Either upward or downward; revenue can’t stagnate. You are the determinant of the increase or decrease in your business revenue. Various paths are available to bring growth to your business. Here are the best steps to rock your 2018 revenue.
Eliminate Activities with no Value
Assess all activities from the beginning of a product or a service development to the end. Identify those activities that utilize time and cost but add no value to the company or customers. Get rid of such activities, and you will experience a decrease in operating expenses.
Enlarge your Market
A more natural way of increasing revenue is adding to your clientele. But consider that everyone is lying down strategies to get more customers. How do you outsmart all other competitors? What matters is how you execute your plans to acquire more customers. Some ways may bring success, but others might pull you down.
You can achieve it in these ways. Introduce new products to your existing clientele. Also, you can have new geographical locations or put additional sales resources. Introducing complementary products with not only bring you new clients but maintain existing ones as well. You will practically double your sales by marketing and selling to the surrounding areas.
Have a Short Sales Transaction Process
A sales transaction process is the process involved while the product or service changes hand. It is whereby the buyer acquires the product or service in exchange for money. Whatever the nature of your business, customers never want long and hectic processes.
Therefore, make the process simple and shorter as the more the steps, the longer the transaction gets. A more extended transaction can turn away clients. A survey by Baymand showed that 37% of customers leave their transaction in the middle for being requested to register. Also, 28% stop a transaction because it’s long and complicated.
Making the process smooth and straightforward can increase a conversion rate. If some steps need be there, make them optional.
Deploy Six Face to Face (F2F) Meetings Strategy
Educate your salespersons on how to treat a client’s ‘No.’ Many salespeople treat a ‘No’ as a customer’s rejection. A no does not necessarily mean a client has no interests in a product. He or she only requires more time to analyze things. From a study, 80% of sales happen after a fifth attempt. Nevertheless, many lose hope after the fourth attempt.
Thus, train your salesforce for six F2F meetings with clients and your sales increase beyond your imagination. You can learn more on sales quick closure techniques and how to apply them here.
Product recommendation can work wonders for you. Any business can use this strategy to increase sales. It is a proven method and is particularly used by Amazon. At Amazon you find, “Customers who bought this item also bought…..”. In 2012 Amazon used this principle and reported 29% sales increase.
You can recommend a related item to a client. For instance, if a client buys a fridge from you, you can suggest a microwave oven. A client buying from you shows he/she completely trusts you and can take your recommendation.
Use Comparison Sales Method
This method is ideal for any industry and the best for increasing sales. It is a technique whereby a customer buys more than he needs without your recommendation. It is achieved by strategically adjusting products prices as below.
100 grams groundnuts- S$0.5
250 grams groundnuts- S$1
300 grams groundnuts- S$1.5
Those clients coming for a small pack will take the second option. And, those coming for the big pack will take two of the second option. It is a technique that plays with customers’ psychology to increase sales.
Promote Repeat Business
Many businesses focus on acquiring new clients and overlook retaining existing ones. Research by Bain & Company and Earl Sasser will surprise you. You can increase your profits by 25%-95% by just a 5% increase in customer retention. By putting a balance between customer retention and acquiring a new customer, you can win a significant revenue.
So how do you increase your repeat business? Here are two ways.
Offer extraordinary services. Repeat business is directly related to how you serve your customers. Excellent customer service is paramount. Clients will do more business with you if they felt fairly treated. It happens even if the results were unfavorable to them.
Ask your clients for referrals. Many people will trust service or a product if a friend or a family member recommend it. Any satisfied client can readily give references if requested. This is according to a report by Texas Tech University. So you can double or triple your revenue by merely asking for referrals.
Evaluate your Brand and Make it More Relevant
A weak product brand can be a burden as more cost is incurred to make it perform. It becomes more difficult to market and sell. You should evaluate your brand to determine any need for a brand tuneup or complete overhaul. Ask yourself questions like, “is our brand new and relevant?” “Is this brand differentiated and compelling?”
A good brand should withstand these questions, and then you can utilize above techniques to increase sales.
Another way of increasing revenue is packaging complementary goods together. For instance if a customer wants to buy a gas cooker, offer them an apron, a complete pack of cooking utensils and wooden chips. By bundling them together you save customer’s time and make them buy more than they would have.
For you to increase revenue, skills, time and money investments are necessary. To ensure you utilize resources productively, keep an eye on the market trend. Due to its unpredictable nature, relying on only one method may not assure results. Explore also the best way of marketing. You might find content marketing will work better for you than other methods.
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