The 2020 economy has been tough on companies, and it’s about to get even tougher. Theoretically, the last thing you want to do is increase your prices and alienate your customer base, but if you want to stay afloat, someone needs to produce more revenue. That “someone” may as well be you. In this post, we’ll explore some strategies for increasing revenue without sacrificing customer base satisfaction
1. Become a Better Salesperson
The question is always the same: “How do I better serve my customers?” Maybe you’re able to do that, but it’s hard when you’re operating on a shoestring budget. This is especially true for medium-sized businesses that are still trying to find their footing to generate more revenue.
The solution? Improve sales by highlighting problems and showcasing solutions. No one buys from someone they don’t like. Make sure your customers (and potential customers) know how much you care about them by showing them love through your customer service. If you could only do one thing to increase revenue, make sure your customers are happier and more satisfied. It’s a lot easier to sell to people who love what you do.
2. Increase Per-Unit Revenue
You don’t need to generate more revenue overall, but you need to increase the amount of money per unit (e.g., single unit sale). The easiest way to do this is to increase your profit margin, which means knowing your costs and keeping them low. You can do this by streamlining your shipping and delivery process. Are you shipping three-day packages with overnight shipping for no reason?
As far as your storefront is concerned, don’t be afraid to differentiate yourself from the competition. Maybe you could charge more for specific products or services. Perhaps you could even make your products of higher quality. These strategies can help you increase the per-unit revenue.
3. Explore Crowdfunding Platforms
Many people invest in startups through crowdfunding platforms. In particular, crowdfunding has been a very effective way of getting startup companies the capital they need to thrive. It’s also been a very effective way for many individuals to find extra cash.
When running a business, it can be useful to know how you can best use these platforms to make extra money. If you don’t have a lot of capital tied up in your business or don’t want to give up equity in your company, crowdfunding may be the way to go. It’s also a great way to build your audience and customer base. You’ll be able to raise funds for advertising, you’ll get the word out about your business, and you’ll even attract brand evangelists.
4. Use Digital Platforms
There’s a reason there’s so much attention paid to the internet these days. The reason is this: You can use digital platforms in a variety of ways to drive revenue. You can capture data and use it to your advantage for marketing and advertising purposes. You can also use it for gathering feedback and building customer loyalty.
If you’re not already doing so, you should be utilizing digital platforms to market, advertise, and sell. That means something as simple as a Facebook page or Etsy shop can lead to revenue. If you want to make money off of your social media presence, you need to start using it to your advantage.
5. Get Creative
The economy fluctuates, but frugality never goes out of style. If you’re able to be more creative with your revenue generation, you can have success. You can look at other industries, see what they do, and adapt your ideas to fit your niche. For example, retail dba’s have been using social media to engage more with their customers. In this scenario, social media isn’t just a perception of being engaged—it’s engaged.
It’s successful, but it’s also very different from TV advertising or magazine ads which are more traditional forms of advertising. The difference is that when you’re in the world of social media, it’s more interactive, and when you’re in the world of TV advertising or magazine ads, it’s more passive.
As you can see, there are many different ways to generate extra revenue. Even if you’re not able to do all of the above, try picking one or two strategies and incorporating them into your business plan. Perhaps they will help you make the transition from a small business owner struggling to make ends meet to a medium-sized company making enough money to thrive in time for 2022.