Strategies to Improve Revenue Streams

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Whether you operate a small business or a multinational company, you will be concerned with the growth and success of your enterprise. In order to improve your revenue and grow, you need to improve marketing and sales efforts, optimize your pricing strategy and expand your market. Read on to find out some strategies proven to boost the revenue of your business. 

Define Your Goals

Businesses go through stages. At the startup stage, there is a single goal, to make the busines profitable. To achieve profitability, revenue needs to exceed costs, but there is no aspiration beyond this. After this has been achieved, it’s time to grow revenues and build your reserves.   

The best way to achieve growth by improving your revenue streams is to define your goals at every stage of your journey. Identify a revenue target that is challenging but also realistic. When you have you’re goal; it’s time to look at how you can achieve that goal within a given timeframe. 

Customer Retention  

Retaining existing customers is not only easier than acquiring new ones; it is better for revenue. Acquiring new customers costs a lot in marketing revenue and onboarding processes, but when you have customers already on the system, you can use a fraction of the marketing budget. 

Look into upselling and cross-selling strategies rather than acquiring new customers; not only is this cheaper and easier, but they are likely to be more responsive as well. Entice existing customers with special discounts and freebies that add value and make them feel appreciated.     

Add Value to Products 

Everyone loves a bargain, so it makes sense to find strategies that add value to customer sales without increasing your overheads. This is easier to achieve than it might seem at first. Bundled products are a good example, a lot of businesses group similar products together at low cost. 

For instance, if you are selling a camera, you might want to include a camera strap and case, batteries and film packs, etc, all for the same price. These additional accessories don’t cost more and add value to the product making your customers feel like they are getting a discount.  

Revenue Management 

Nowadays, analytics technology can help companies to predict customer behavior and optimize products based on demand and what actions they take. It makes sense to implement analytics at every stage of your business development to reduce inefficiencies and boost your growth.  

For instance, the airline industry uses profit control to predict customer behavior and increase revenue by optimizing its products. Not only does this strategy reduce overheads and increase efficiency, but it also adds value to the customer experience as profits can then be reinvested.    

Improve Pricing Strategies 

Higher prices mean more revenue, but only when it does not impact the quality of your sales; in that case, you might see a reduction in your revenue streams. That’s why it’s so important to get the best pricing strategy for your product, one in line with customer expectations and markets.  

First, you need to ensure that you remain in profit, so price your products according to your own margins, how much does it cost you to produce the product, and what price you can really sell it at. Secondly, consult the market, how can you price your product in line with the competition.  

Offer Discounts 

Discounts are an excellent way to improve customer engagement and increase revenue streams. Discounts come in many forms, you can have cut-price goods, but you can also have seasonal discounts and one-off reductions to promote to existing customers through e-mail.. 

Discounts can be very cost-effective, especially if you have an overabundance of stock that you might otherwise lose revenue with. Instead, you can make existing customers feel more valued and offload seasonal goods. Another form of discount is a rebate, offering money back.

Improve Marketing Strategies 

In the past, marketing took a blanket approach, identify the area of value and advertise to a many people as possible. That has all changed with the advent of the internet, analytics, and targeted marketing campaigns. Nowadays, it’s better to narrow the focus of your marketing. 

Make extensive use of analytics to predict consumer behaviour and optimize your revenue strategy. For instance, you might notice that you are making more sales online than in you are in stores which can lead to better in-store strategies or improved website performance ideas.  

Improve Your Sales Channel 

The sales channel is an important avenue to improve your revenue streams; these days, customers expect a frictionless payment processing experience, and any form of inconvenience could result in loss. Target sales channel performance using analytics. 

However, there are other ways you can boost your sales channel performance using marketing strategies. Introduce bold statements and colours that grab customers’ attention and promise value as well as a positive experience. You can also incentivize customers with urgency.

Revise Online Presence 

Naturally, your online presence is important, but it’s not enough to set up an online presence and then forget about it; you need to continually revise your online presence and make sure it is in line with modern technologies and best practices; this is a constantly moving landscape.

Make the most of analytics technology to discover the trends in website traffic and improve your SEO strategy to bring more customers to your business. Organic search engine marketing is the best for revenues, but consider paid ads too; they are very lucrative if implemented correctly.  

Final Thoughts 

Regardless of the stage of your business, it’s a good idea to review your marketing strategies to improve revenue streams and encourage growth. Once you are past the profitability stage of startup business strategy, growth is a main concern; how can you increase revenue at low cost? 

In this article, you have encountered a variety of ways to improve your revenue streams using traditional marketing strategies and the latest technologies. Remember, the goal of your business is to grow, so set your goals and employ any means available to hit your targets.  

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About Dequiana Jackson

Dequiana Jackson, Founder of Inspired Marketing, Inc., helps overachieving women entrepreneurs conquer limiting beliefs and create marketing plans that win. This includes one-on-one marketing plan development, digital product creation, web design and content marketing. Dequiana is the author of Know Your Business: How to Attract Ideal Clients & Sell More and runs the award-winning blog, Entrepreneur-Resources.net.

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