“Money is plentiful for those who understand the simple laws which govern its acquisition.” – George Clayson.
George is very spot on. Money is verily available to those who understand the fundamentals of making money. It is essential to remember that reducing your expenses is just as important as earning revenue. One can’t go without the other, this is the basic fundamental of money management. In this article, I will describe to you the fun part; increasing your company revenue. Here’s how to do it:
- Increase the number of customers you serve.
- Increase the average size of each transaction by selling more.
- Increase the frequency of transactions per customer.
- Raise your prices.
Let’s consider operating an online fashion retail business that sells designer handbags , and you need to increase the company’s revenue to achieve the targeted quarterly sales. Here’s my take on how to apply the strategies:
Increase the Number of Customers You Have
This strategy is relatively straightforward. Let’s see how you can benefit more from it:
- You’ll earn money from purchases by your customers online.
- Even if your traffic is not converted into sales, you can take advantage of earning more revenue by adding advertisements on your website; earn money from ads based on impression or pay-per-click.
- If your business model is focused on selling own services/products, you can simply earn money from ads on your website based on ‘view-impressions’.
Increase the average size of each transaction by selling more.
This method is to simply get each customer to purchase more. This is typically done through a process called upselling:
- When a customer purchases a designer handbag, offer them additional items/merchandises at your site’s checkout. Give them additional discount if they order multiple items. The more of these items the customer purchases, the more they spend and the more revenue you select.
- Apply these on your social media pages too. For example on your Instagram page, simply offer special discounts to customers who purchase multiple bags directly on the page.
Increase the Frequency of Transactions per Customer
You can even encourage people to purchase from you more often. If your average customer comes in once a month, convincing them to patronize your business once a week will increase your revenue. Few ways to encourage frequent buying:
- Update your site with more new products/services.
- Offer promotional discounts for a period of time
- Special rate on your best-selling products/services.
- Offer seasonal products/services (e.g. Festival season etc)
Raising Your Prices
By re-considering a higher pricing position, you’ll collect more revenue from every purchase a customer makes. Your customers might not be pleased with the price increase, but if you can add further value justifying it, they will be inclined to spend more at your store.
Final Two Cent
Always focus the majority of your efforts on serving your ideal customers. Your ideal customers buy early, buy often, spend the most, spread the word, and are willing to pay a premium for the value you provide. The more ideal customers you can attract, the better your business.