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The Only Secret You Should Know to Increase Revenue
Now that you have started your small business, it's time to figure out ways to not only keep it alive but to thrive. What's next? Increase revenue.
Increasing your sales from zero to hero is easier said than done. It takes a lot of planning and execution to make it happen.
Remember that you are competing head-to-head with bigger, more successful businesses that have more prominent marketing and sales budgets.
It's like David and Goliath, and you think the winner of the story is obvious. Remember that in that story, David won, which means your small business can win too! All you need is a marketing strategy.
Let me begin by discussing how we approach marketing strategy to increase revenue for our business and our clients. It's called the Marketing Strategy Trilogy.
1.
What is the Marketing Strategy Trilogy?
The Marketing Strategy Trilogy is a unique approach to increase sales and revenue.
Here are the awesome benefits of this approach:
- It provides clear direction and focus on your ideal clients and how to best engage them.
- It creates clear, engaging marketing messaging that attracts and converts ideal prospects into customers.
- It yields consistent and repeatable results.
The Marketing Strategy Trilogy has three crucial elements - Target Market, Storytelling, and System.
Target Market
The Target Market element consists of:
- Your Ideal Clients
- Content - that you create to meet their needs
- The Customer Journey (The Marketing Hourglass)
Knowing your target market provides direction & focus.
Storytelling
The Storytelling element is about:
- Messaging
The right messaging creates clarity and engages prospects and customers alike.
Check out this article on business storytelling to learn its importance in increasing revenue.
System
The System element is about:
- How, When & What You Execute On
The system provides a framework to follow and yields consistent and repeatable results.
Now that you understand the Marketing Strategy Trilogy, we need to look at the only ways to increase sales and revenue for your business.
2.
The Only Ways to Increase Revenue
The only ways to increase revenue for your business are:
- Increase your number of customers.
- Increase your order size with each customer.
- Increase how frequently customers buy.
- Raise your prices.
Let's look at each one of these in more detail.
Increase Your Number of Customers
One way to increase sales is to do business with more customers.
Here are a few ways to increase your number of customers:
- Provide excellent customer service.
- Define and understand your target market.
- Take advantage of your personal and professional network to attract new customers.
- Use social media to connect with more people.
Increasing the number of customers is typically the area most businesses focus on first to increase sales, but it's also one of the hardest.
Increase Your Order Size With Each Customer
Another secret to increasing sales for your small business is to get each customer to buy more. Some call it upselling or cross-selling.
Here are ways to increase your order size with each customer:
- Suggest other products that a customer can use with what they are already purchasing. For example, offer a hair conditioner to compliment a shampoo product. It's just like McDonald's asking you, "would you like fries with that?"
- Actively listen to customer needs and wants. Listen for customer cues like "I wish I could do..." or "I want to try..." and tailor-fit an offer that meets their need.
- Always stay honest and be transparent about pricing, charges, and contracts to build stronger loyalty and rapport with your customers.
- Explain the value of the additional product or service to your customers. Show them case studies, testimonials, and positive customer reviews to help them achieve their personal goals.
The more products or services a customer purchases, the more they spend, and the more revenue for you.
Increase How Frequently Customers Buy
Now that you are doing business with more customers and they are buying more with each order, how can you get them to buy more frequently?
To achieve higher purchase frequency, you need to work extra hard on adding value to your products or services. Your customers must see more value from your offer for them to keep buying from you.
Here are a few ways to encourage customers to buy more frequently.
- Starting a loyalty program is one of the most popular ways of encouraging customers to buy more frequently.
- Offer volume discounts that provide cost savings to customers for the more they buy in a given period.
- Can you incorporate a continuity program or other types of recurring revenue into your business?
Raise Your Prices
Raising your prices is a great way to increase revenue. It means you’ll have more revenue from every purchase a customer makes.
Before you say you can't possibly raise your prices, keep in mind that many small businesses undercharge for their products and services.
However, there are things to consider before you raise your prices.
- Do some market research to truly understand the market value for what you do or sell.
- Are you encountering any price resistance now? If not, this could mean you have room to raise your prices.
- Know the type of client you want to attract, because your pricing will attract certain types of customers.
- Can you raise the perceived value of your products or services? This will make any price increases much more palatable for the customer.
- Think about what your prices say about your business? Do you want to be perceived as the low price leader or the best of the best?
If you choose to raise prices, create a strategy so that your price increase goes as smoothly as possible.
3.
How the Marketing Strategy Trilogy Will Increase Your Revenue
When you have a solid marketing strategy in place, you will experience the following benefits (all of which increase revenue):
Attract More Ideal Clients
Remember that your ideal clients are the ones that are profitable and refer your business because they find value from your products or services.
Attracting more of them is a great way to increase revenue.
You Can Command a Premium for Your Products or Services
A solid marketing strategy will allow you to charge more or raise your prices, which will increase sales.
Predictable Business Growth
Why? Because your marketing strategy attracts profitable, ideal clients with strong messaging and a way to efficiently execute your marketing.
And that’s the secret on how to increase revenue!
Always keep the Marketing Strategy Trilogy in mind and apply it to your small business strategy, and your sales will increase in no time.
Check out the recommended resources below to learn more about how to increase revenue. Also, don't be shy to CONTACT US if you need help.
Recommended Sales Resources
19 Tips on How to Increase Sales for Your Small Business
Top Secrets on How to Confidently Win Sales Objections
You Need to Learn These Essential Sales Skills Today
So what do you think about this article? Are you ready to increase your revenue?
Drop a comment below and let's discuss.
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Header image courtesy of Pexels.
About the Author Tim Fitzpatrick
Tim Fitzpatrick is the President of Rialto Marketing. At Rialto Marketing, we help local service-based businesses eliminate the confusion of marketing. As a marketing partner, we help clients put in place and manage a simple marketing plan so they can grow. Marketing your business shouldn't be a challenge. We can help.
