8 Strategies to Increase Sales and Revenue
Did you know that number 8 is the atomic number of oxygen? Whether the answer is “yes” or “no,” the eight rules we are about to discuss will breathe some more life into the lungs of your endeavors.
Each growth recipe here is heavily tech-stained or psychology-based, just like every other piece of this new age reality. However, before the journey begins, let’s get all old-school and do the homework, defining terminology.
How to increase Sales and Revenue?
A slight confusion is commonplace when it comes to using words like “sales,” “revenues” and “income.” Being intimately related, these terms actually refer to different concepts:
- “sales” stands for the number of units sold;
- “revenue” is the amount of money received during a certain business period;
- “income” – the net profit or bottom line.
Changes in the number of sales do not always guarantee longed-for positive dynamics in revenue. Therefore, we care nothing for the action plans that focus only on one constituent at a time. We want the entire trio to fare well. And that’s why we do the following.
1. Cherish pricing strategies to increase revenue
Ever considered making clients happier and even more attracted to your brand while earnestly bringing profit margins up? Take a seat and watch dynamic pricing with its smart digital tools take care of that.
Today pricing is so much more than just marking products and services with colorful tags. Driven by high demand, it has transformed into a ramified field of its own, since one and all ways to increase revenue directly depend on potency of the pricing strategy. A rule of thumb: markets are agile, and so should the prices be. Smart pricing techniques for increasing sales with appropriate floors and ceilings assigned manually will be right up your alley, complying with target audience needs and buying habits. Here’s a couple of tips to get the ball rolling:
- apply A/B testing to establish the most reasonable pricing strategies produce and season-wise;
- take advantage of the most advanced analytics & reporting software always to keep abreast of the times and changes in figures;
- stay competitive 24/7.
Smart tools and a couple of pro tips will eliminate the risk of following false footsteps. The majority of sellers tend to build their prices upon the benchmarks set by their competitors instead of catering to customer value (with less than one-fifth of retailers toeing the latter). However, market studies have clearly identified the primacy of value-based ways to increase revenue over cost-based counterparts, which are likely to put a crimp in company’s financial results.
2. Define your Goals and Strategy to increase sales of a product
When Alice in Wonderland wondered which way to take, a Cheshire cat in a tree asked her, “Where do you want to go?” and she answered “I don’t know.” “Then,” said the cat, “it doesn’t matter.”
That’s a great quote, and there’s definitely a certain worldly wisdom in it, but not the one to master your strategy to increase sales. Period.
Knowing, where you want to go predetermines financial metrics to a large extent. What's your sales strategy for this year? What rivals are you planning to outperform? What are market opportunities you about to jump at? These and other strategic questions are to be answered before you embark on that objective-winning journey of yours. Having it configured, you will derive a personalized formula for success with distinct subcomponents and functions.
Get to know: why the pricing strategies you’ve chosen don’t work.
3. Expose yourself to communication
In the past companies used to talk a lot about their product and its properties. Of course, products are still essential in the age of client-based marketing, but the focus has clearly shifted to who we are.
Comprehensive and elaborate communication with existing clients and prospects is among the most potent tools of the era. People want to hear your voice and to be acknowledged themselves. Website and social networks updates, newsletters and in-store displays with handy tips will let you stay in touch and constantly vitalize the image of your company.
Forward-minded live chats and intelligent chatbots (with “intelligent” being a keyword!) can do a world of good here, but even time-honored tools still rock. Good old email is still in the game with nearly two-thirds of US users saying “yes” to it, so long as you can brainstorm something relevant to be brought to their table (and, hopefully, without the word “enlarge” in it).
4. Create a reason to buy
While holiday sales experience alluring annual growth, we sometimes feel sorry season’s greetings don’t pay more frequent visits. Or, do they?
We all love to celebrate. And there’s nothing wrong with that. Highly dynamic lifestyle, responsibilities, commitments, worries, and concerns need to be balanced and alleviated through significant gala days and minor laugh-ins. Once that wall-calendar is reluctant to offer highlights, feel welcome to suggest an event to jubilate.
The idea for a holiday may run around your product line, or small universal mercies (like hugging or world smile day), but once you capture the attention of your audience with a good reason to chill out and let their hair down, you will increase sales and revenue right away. And your customers will gain the upper hand with a portion of optimism and mental recreation.
5. Up-sell and cross-sell marketing strategies
To entirely suit the demands of your customers, give them a handle to benefit from a full range of your products and encourage to choose high-end services.
Clients are not always aware of what’s in your treasure chest, making do with bare essentials, whereas being ready to go on a spending spree. Matching up available solutions and offers into bundles and well-connected categories can get them to buy more and obtain a higher degree of satisfaction.
Equally, the audience should always have an upscale assortment of their sight and understand what they can gain opting for more sophisticated purchases. That’s one of the key marketing strategies to increase revenue. It reveals not only how to increase sales of a product, but also how to improve customer’s loyalty and upgrade standards of the company.
6. Expand Distribution Channels
How to increase sales and revenue without new horizons and discoveries? Choose to look for perspectives rather than try to answer this dead-ender.
For every smooth-running business, there’s always so much more out there. Thinking out of your standard distributional channels might bring numerous benefits and improve figures. And, there’s no need to alter your tried-and-tested strategies seriously.
Some marketing backup may be required, of course, but:
aren’t new markets worth it?
Auditing activities will provide an unambiguous answer in each specific case.
7. Don’t be a yes-man
No matter how exciting the challenge of “pleasing them all” might be, there’s definitely more sense in concentrating on positively tuned customers that look for longstanding fruitful cooperation. Those are the ones you really want to devote your time and effort towards!
Now, you don’t have to be that picky if you are a retail store, but for those working mainly for businesses, this piece of advice is likely to be a nerve-, time- and who knows how many other things-saver.
Life is life, and there’s pretty much nothing we can do to fully secure ourselves from potshots and groundless complaints. Nevertheless, what we can do is to incorporate a selectivity mindset, while staying polite and complaisant. The next time that energy drainer moment comes around, we can handle this without unnecessary implications and worries. Save your efforts for optimization and further growth.
8. Motivate your team
While staying customer-oriented and a bit of revenue-minded, do not blow off those who make things possible. Be grateful, be inspiring, as their motivation is your success!
If you want to discover how to increase revenue growth, you should gather a team that strives to do the same. And “growth” always implies new qualities and opportunities. Once you figure out yours, make sure that players on your team do not feel constrained or cornered, and have a vision of things to achieve.
Among all sorts of perks and incentives ever invented, compensation has proven to be the most effective one. Over and over again, just like in this survey by SAP. To make a long story short, there’s no place like your beloved workplace with a good compensation plan!
You have probably noticed, that most of these “do’s” appeal to your readiness to act, self-confidence and innovativeness. And tech-savviness, naturally. Most of these objectives cannot be reached promptly without complex digital tools, but these unbeaten tracks are not to be walked on ownsome. Automated solutions come fitted with a guiding hand pointing expressly at the acres where increased revenue germinates.