In business life, most of the time, there are only four ways most businesses can increase their revenues. Knowing this very clearly, and knowing the details of each of those 4 methods, allows you to strategically plan revenue growth in your business.
Let us look at the four ways you can increase revenues in your business.
1. Increasing the number of customers. That is pretty obvious. But how? The ere many ways to do that but increasing leads is the most common approach. The golden rule is that you should always have at least 5 to 7 lead-generation methods permanently working all the time, no matter what. For example, have a newsletter, a Facebook Page that is active, classified ads, LinkedIn, a word-of-mouth or referral program, direct mail ads, online ads, calling prospects, print ads, and so on. At any one time, always, you should have 5 to 7 active lead-generation methods working.
2. Increasing prices. This will only work in certain cases, for certain businesses.
3. Increasing average transaction size per customer. For example, you can do so by using up-sells, which is what McDonald’s does when they ask you if you would like a larger Coke and fries with your order. You can also bundle offers, whereby you give an option of buying two for the price of one and a half or something like that. You can also create new forms or packages of your value but at higher price points, for example, if you are selling information or training materials, instead of selling MP3s you can add a DVD option and an even more expensive live seminar or private coaching option.
4. Increasing the frequency of transactions per customer. For example, if you are selling food, you can offer a subscription option whereby you automatically deliver the food on a monthly subscription basis, so customers will never forget to order. You can also add back-end or add-on products, which means you find products that your customers would love because they are related to what you are already selling them, and add those products to your offering.
To increase revenues, always consider, always, how you can keep improving on the above four points in your business. Improve upon each point individually but also look at the four points together and see how you can mix them up in creative ways.