Sometimes, you need to start increasing revenue fast and there is no time to waste creating new revenue streams. Here is a 4 step process to help you increase revenue without creating new services or doing a ton of new customer acquisition.
Step 1: Know Which Services Make You the Most Money
One of the best ways to boost revenue is to figure out where most of your revenue comes from.
Have you ever heard of the 80/20 rule, or the Pareto Principle? It’s likely that 80% of your profits come from only 20% of your products or services.
If you can determine which of your offerings are the true money makers, you can capitalize on that knowledge to make more money.
If you’ve read How to Grow Your Small Business by Donald Miller, you already have access to the Small Business Flight Plan downloadable PDF. On page 12 of the document, there is a product profitability worksheet you can fill out to determine which revenue stream is making you the most profit.
Step 2: Focus on What Works
Now that you know which products or services boost revenue the most, it is time to start streamlining operations and focusing the bulk of your resources on those products or services.
When you invest your time and energy in what you already know works, there is less risk and more potential for boosting revenue. You are working to stay ahead of the competition instead of trying to catch up. Plus, you are making your business known for something you already know you do well. That is a much better strategy than running around in 17 different directions trying to fix what is broken.
To make more sales on your existing services, tell everyone who walks through your door about your most profitable service. Clearly explain how that service solves your potential customer’s problem. As Donald Miller says, “Customers don’t buy products and services. They buy solutions to problems.” Be sure everyone knows that your product or service is the solution they need.
When possible, offer discounts or targeted promotions that make potential customers feel like they are getting even more value for their money.
Lastly, always provide excellent customer service so they will want to come back. Repeat customers cost you a lot less in acquisition than new customers.
You’ll want to do some website updates to feature your most profitable services on your homepage. If you don’t already have one, set up an effective sales funnel for that product or service, using email marketing to help you generate revenue without doing extra work.
Step 3: Ditch the Duds
If only 20% of your products or services are making you money, that means 80% of them are dead weight. 80% of your offerings are holding your business back. Ouch.
It’s not always easy to let go of ideas that you spent hours making a reality BUT investing more resources into an offering no one wants isn’t going to boost your business’s profits.
The truth is, sometimes, we all create duds. If we hold on to them, we can bring the whole business down. If it isn’t selling, it’s time to let it go.
If you can’t bear to cut out a product or service just yet, don’t. You can leave it hidden in a corner of your website or let it collect dust in your warehouse until it fizzles out on its own.
In the meantime, stop actively promoting it and increase engagement around the 20% of your products and services that are making you money. Chances are, in time, even you will forget about your duds.
Step 4: Batch and Bundle
Believe it or not, you can increase prices without sending your existing customers running to your competitors. Instead of just raising prices, create packages and bundles that add value to your offerings. This way, current customers won’t feel the price increase. Instead, they’ll feel like they are getting more for their money.
For example, as a marketing agency, we realized we could help our clients more efficiently, and at a lower cost, if we bundled everything they needed for a solid marketing foundation into one package. Our package price is lower than it would be if someone chose to purchase each service individually.
We were able to do this because one of the most time consuming pieces of our work is getting to know new customers, their goals, and their brand. Once we have that foundational information, the additional marketing materials are much easier to create.
Bundling these services allows us to offer more well-rounded support and boost customer satisfaction but it also increases the lifetime value of each client and our overall profit margin. It is a win for us and a win for them.
No matter what industry you are in, you can find a way to bundle products or use upselling and cross-selling to generate more revenue. The key is to provide more value for your customers while also increasing profit for your business.
For instance, let’s say you are a financial services business. You probably offer a variety of services like retirement planning, tax consulting, and investment advice.
Most clients come to you for just one service. You could increase profit by combining these three services into a comprehensive financial planning package. To sweeten the deal, you could offer ongoing advisory services at a reduced rate. This will increase customer loyalty and provide recurring revenue for your business. Your existing customers will feel like they’re getting more support for less and you’ll be making more money. It’s a win for everyone!
The Best Strategy For Increasing Revenue
While creating new offerings is one way to increase revenue for your business, investing your resources in the right place almost always generates better results.
When you need to increase revenue, identify your most profitable products, make improvements to how you market and promote those products, and find creative ways to bundle what you’ve already got to increase value and revenue at the same time.
Business growth doesn’t have to be complicated but it does need to be strategic. If you are struggling to increase profit margins and you aren’t sure why your current marketing isn’t working, schedule a call with Guide MKTG today.
We will analyze your current marketing strategy, let you know what is broken, and give you a solid plan to fix it.
In a few months, you could have more money in the bank. You just need a clear strategy and a solid plan to make it happen. Schedule your free clarity call to get yours today.