Part of running a good business is never getting complacent when it comes to revenue. A company’s revenue should always outpace expenses. Otherwise, trouble is just around the corner. But all business owners know that increasing revenue is easier said than done. Read on to learn how to increase revenue in four actionable steps.
How to increase revenue in four easy steps
Increasing your business revenue doesn’t just mean more money in the bank. Growing your business’s income can help you reinvest in the business, create new revenue streams, and improve the value of your business.
You can increase revenue by:
- Focusing on your customers
- Taking another look at your products or services
- Offering new payment plans and shipping procedures
- Revisiting your bottom line
1. Focus on your customers
Your relationship with your customers is the bread and butter of any business. Focusing on your customers is a surefire way to increase revenue.
Repeat customers
Have you ever wondered how to increase revenue from existing customers? Business owners depend on repeat customers to keep sales steady. The good news about repeat customers is that they’re dependable. Let them know about new products by reaching out through email and SMS campaigns.
Here are a few ways to keep your customers coming back:
- Create a customer loyalty program
- Personalize your customer service (e.g., customer-specific email campaigns based on previous buying patterns)
- Give customers a chance to offer feedback (and listen to it)
- Stay in touch directly through social media
Offering special incentives can reward customers for choosing your brand. And it doesn’t matter if they are die-hard fans who have only bought a few items from you. Sales and discounts can happen anytime you want, like holidays or to move old inventory.
Depending on what you know about your customers, you can offer discounts for birthdays or special occasions like anniversaries.
Former customers
Some customers come through your business or visit your website and seem to disappear. It’s always good news when you make a sale. But how can you turn one-time customers into brand loyalists?
If you want to bring older or one-time customers back to your business, here are some things to try:
- Use past shopping experiences to offer similar items
- Create email campaigns specifically for customers you haven’t seen in a while
- Offer a discount specifically to get these customers back into your store
Potential customers
There are plenty of ways to expand your business’s reach. Opening a new location is a great way to do this, but it may be out of your budget.
If you’re strapped for cash but want to break into new areas, consider:
- Marketing in nearby markets
- Expanding shipping operations and discounts to areas that are close by
- Targeting new locations through online marketing
2. Take another look at your products or services
It may be time to reconsider your products and services. That doesn’t mean that you need to reinvent the wheel. You should always stick with what works, but there are several ways you can rethink new and old products to increase revenue.
Add products or services
You know which products sell best and which ones are struggling. Adding products is a great way to increase revenue. Think about adding products adjacent to what you already sell (e.g., cross-selling). No matter what you sell, make sure that you stay on brand and don’t stray too far away from what you know already works.
Let’s say that you sell books online. You could add several products that customers would love to buy, such as:
- Branded clothing and accessories
- Stationary
- Bookmarks
- Book lights
Bundle products or services
If there’s one thing that shoppers love as much as a good sale, it’s a product bundle. Why buy products one at a time when you can get associated products together all at once? And, bundled products can come with a discount, too (the cherry on top).
Bundled products can happen any time of year, but customers may appreciate seasonal ideas to make gift-giving a bit easier. Let’s build on the previous example of the online bookstore. You offer themed bundles for specific occasions, like:
- New Year’s Day
- Valentine’s Day
- Mother’s and Father’s Day
- Christmas
Customers can buy a tote bag filled with holiday-themed books, some branded clothing, and a coffee mug at a discounted price. They do their shopping all at once, and you’ve increased your sales.
Upsell and cross-sell
Depending on your business, you can upsell and cross-sell products and services. The process behind both is simple.
Upselling is when you offer an upgraded or more expensive product to customers.
Cross-selling is when you offer a related product to what the customer is already interested in.
You can upsell and cross-sell at your point of sale or in your marketing materials.
3. Offer new payment plans and shipping procedures
Understanding customer needs can go a long way. Offering new payment plans and shipping procedures may be just what customers need to keep them coming back.
Add new payment options
There are plenty of ways customers can spend money with your company. If a customer has a preferred payment method and you don’t offer it, you can say goodbye to the sale.
Don’t restrict yourself to cash, checks, and credit or debit cards. Think about offering:
- Mobile pay. Mobile payments let customers use their phones and other devices to make payments.
- Buy now, pay later. A buy now, pay later (BNPL) is a type of split payment or point-of-sale installment loan. Customers pay for a percentage of the product at the point of sale and make additional payments over time.
- Automated clearing house. An automated clearing house lets customers input their banking information and withdraw payments automatically from their accounts. ACH payments are a great way to set up recurring payments for customers.
Reduce shipping costs
Did you know that customers abandon almost 70% of online shopping carts? The main culprit? Surprise shipping costs. Here are some ways to prevent shipping sticker shock:
- Offer multiple shipping carriers so customers can shop for the best deal
- Display real-time shipping costs when customers view their cart
- Think about free shipping for all customers or those that are close by
Offer subscriptions
Sometimes products need to be regularly replaced. If customers need to remember to buy the product regularly, make it easier for them by offering subscriptions. Subscriptions secure the sale over time and help your customers out.
4. Don’t forget your bottom line
If you’re really interested in how to increase revenue for small business, check in with your bottom line and see if improvements can be made. More often than not, there are costs that you can trim to save money and boost your revenue.
Create a new budget
A new small business budget may be just the thing you need to increase your revenue. Budgets set your spending habits for the year, manage your spending, and can help improve your revenue. Here’s what you need to do to create a budget:
- Calculate your net income
- Track your spending
- Set realistic goals
- Make a spending plan
- Adjust your spending as needed
- Review your budget regularly
Increasing your revenue is one thing. Have you ever thought about increasing your accounting efficiency? Patriot’s online accounting software can make your small business accounting a breeze. Try it for free today!
This is not intended as legal advice; for more information, please click here.