No company is too small to think about growth.
Even the smallest startups should have a plan to grow revenue, whether by expanding their product line or entering new markets.
But what does it actually mean to grow your revenue? And more importantly, how can you do it in a strategic way that will help your business succeed?
Read on to learn 10 strategic insights to boosting your revenue growth.
By the end of this post, you’ll be well on your way to creating an actionable plan to increase your revenue.
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What Is Revenue Growth?
Revenue growth is the increase in your company revenue over time. Usually, it’s how much your business has made compared with its previous period.
You can calculate revenue growth by comparing the current year’s revenue to last year’s revenue. Your revenue growth is the growth of money you earn from sales, fees, commissions, investments, and so on.
A revenue growth strategy means you have a solid plan for how to grow your revenue over the course of the month or year. While each strategy depends on the nature of your business, there are still universal strategies you can implement, some of which we’ll look at below.
10 Strategic Insights To Boost Revenue Growth
Are you ready to increase your revenue as a business? The first place to start is by ensuring you improve sales, get additional sources of profit, and offer more value as a company.
Here’s how to do this;
1. Refine Your Prices For Taxes And Shipping
If you want to rethink your pricing model, you can consider charging shipping fees upfront for each product. With this, you can start a free shipping promotion.
This could apply to any website visitor or customer who buys more than a certain amount. This works well for small businesses that ship orders within a single state or country. However, if you’re a global brand making international deliveries, you can include taxes instead of shipping.
This way, you can use free shipping and free taxes to increase your sales. When customers see in their shopping cart or at checkout that they don’t have to pay any additional fees, it’s a great incentive to complete the purchase. Often, they don’t even think about the price increase of your products if they get free shipping.
In some cases, your customers are even willing to pay more for faster shipping. That’s why some customers subscribe to Amazon Prime to get next-day delivery instead of waiting for standard shipping time
If you don’t plan on raising your prices, you can simply give your customers the option to pay more for a preferred service. Show them this option either on the product page or on the shopping cart page.
Pro Tips– Use revenue management systems to analyze your data and optimize pricing
– Price your exclusive program or priority service so that it’s attractive and not too expensive
2. Introduce Coupon Marketing
People love coupons, especially when they give them a discount on their next purchase. Coupons not only help you retain customers but also increase the likelihood of repeat purchases. That’s why many entrepreneurs invest in coupon marketing.
When you give a customer a coupon, they not only tell their friends about it, but they end up making another purchase just so they can redeem it.
In some cases, customers prefer to collect coupons so they can make a free purchase instead of getting a discount.
So consider implementing a coupon system for purchasing certain products, completing certain account transactions, or even for a referral.
It doesn’t have to be physical coupons, as there are many electronic coupon generators available. In fact, people prefer digital coupons over traditional coupon systems.
Specify which items the coupons can be used for and start a campaign accordingly. Send out emails and include them on your website.
This is a great way to increase customer lifetime value and sales and in turn, increase your income.
Pro Tips– First determine if coupons fit your business model
– Instead of giving a coupon for items customers love, give them for items customers haven’t interacted with yet
3. Expand Your Distribution Channels
If you’ve been seeing consistent revenue over the last few months or years, you should think about expanding your current sales channels.
Because you’re probably maximizing the revenue you can generate through your current channels. So introduce your business to a new audience and capture some of that market share. People who’ve not yet been exposed to your brand.
Think about your local retailers and other online retail platforms. For example, if you’ve your own fashion store, consider partnering with popular fashion platforms like Amazon, Aliexpress, Thrive Market, and others.
This way, you can offer your branded products and have them delivered easily. People who shop there regularly will hear about your brand and buy from you. By simply partnering with them, you’ll automatically make more sales than before.
You can also look into social selling if you don’t already. Most social media platforms give you the option to set up a store on your page.
You hear about Facebook Shop, Instagram Shop, and even Tiktok. Create catalogs and offer your best-selling items on these platforms. This way, anyone who sees your ads or content can buy them instantly without having to visit your website or eCommerce store.
Pro Tips– Interact with potential customers on social media with relevant comments or tweets
– Research guidelines for each marketplace to find out the best option for your business
4. Launch Re-Engagement Or Win-Back Campaigns
Unfortunately, you have users who no longer visit your store. These may even be people who were once loyal to your brand. These people are important to your revenue growth because if you continue to acquire users without retaining them, it’ll only cost you more.
In fact, it costs 7x more to acquire a new customer than it does to retain existing customers.
So, develop a campaign that aims to win back your former users. Of course, that means targeting them with things that interest them. For example, you could offer them a discount if they make a purchase within a certain time period or offer them an upgrade on their last purchase.
We recommend starting with a survey to better understand the reasons why they stopped buying from your company. This will then yield insights into what you can offer.
If it’s a pricing issue – offer a discount. If it’s a service issue – maybe offer them priority service, better logistics, or upsell to a dedicated account manager.
In some cases, the customer simply does’t need your products anymore. In that case, you could ask them for a referral or a review that will help make you convert new customers.
Pro Tips– Constantly check in with your customers to avoid win-back campaigns
– If a user cancels your free trial, you should always follow up to find out why
5. Expand Your Product Offerings
Another way to provide consistent revenue growth is to add more offers tailored to your customers’ needs. That way, they’re not limited to buying only one product from you.
Think of it as increasing their reliance on your brand and giving you a competitive advantage in your industry. For example, instead of choosing you just for your veterinary services, they can also buy pet food, toys, and clothing when they visit your veterinary business.
Think about what other products or services a customer would buy if they made a purchase. You can also ask your customers or make a note of what they require when they visit your store.
Do they ask for additional services or recommendations when they see you don’t offer them?
This is a great way to gradually expand your offering without losing sight of what your brand is about or what your customers need.
This is also why we recommend a solid business name that doesn’t limit you as you start expanding your offering. To stick with our example: If a veterinarian picks a limiting business like “Mcgenius Veterinarian,” then what the veterinarian offers is limited to hospital visits
However, if the veterinarian chooses “Mcgenius pet care,” this covers everything related to pets. From hospital visits to grooming and even feeding. Later, it could even expand to include dog daycare and other related services.
Pro Tips– Use a business name generator to get insightful long-term business name ideas
– Start with the product that a larger percentage of your customers are asking for, and make sure it’s close to your current offering
6. Create Product Bundles To Move Slow Products
Have you ever visited a website and noticed that there’s a product bundle offer?
Believe it or not, it’s a great way to increase your revenue growth, especially if you’ve have a lot of products that are slow to sell. Instead of just hoping they sell out, or offering them on clearance, you can combine them with your best sellers, like in this example from Harrys.
People tend to consider it a bargain purchase when they can get two or more products for less money. It also saves you a lot of money on your marketing.
For example, instead of marketing DVDs for your cooking show and then selling the recipe book separately, you can bundle the two and sell them at a reduced price. When a customer chooses one of the items, show them the set and encourage them to save even more by choosing that item.
If you don’t want to create value sets or product bundles, you can instead offer a discount when your customers buy multiple items together. So when they add an item to their cart, you can simply ask them to add a specific product instead to save money.
By increasing the average order value of your customers, you also increase your sales.
Pro Tips– Always bundle related products together
– Use data to find out what products people like to buy, and figure out how to offer even more enticing bundles
7. Offer Subscriptions For Products
If you sell products that need to be purchase often, such as food or personal care products, instead of hoping a customer will return, you can make sure they do by offering subscription packages instead.
Let’s say that after the customer makes their first purchase, they see an opportunity to subscribe for a refill or an immediate restock at a discounted price.
They don’t have to manually reorder in a few weeks or months. This also helps you automate your sales and continually increase your revenue. Because if you’re sure that a certain number of customers will subscribe to automatic restocking, the amount of money you generate in that period will increase.
Make sure you create different subscription categories. For example, you can have a three-month plan, a six-month plan, and a one-year plan.
Whether users can cancel their subscriptions or pay in installments is up to you. Just make sure that you clearly communicate the terms and conditions.
Pro Tips– Select exclusive products that are eligible for subscriptions – preferably bestsellers
– Distribute subscription offers outside your website through other channels such as email
8. Offer More Payment Methods
Many of your potential customers abandon their shopping cart because they can’t find their preferred payment method. Although credit and debit cards are a great way to accept payments, not everyone likes to share that information or use that option.
Most people prefer wallet-based payment options. Options like Paypal, Google Pay, Amazon Pay and more. This is because they’re considered secure quick payment options.
These new options also allow you to receive payments from one-time customers who aren’t ready to commit. So instead of losing these guest shoppers, you should offer more options that they’ll find convenient.
You can research what other businesses in your industry are using, and then set it up. You can also ask your current customers in a short survey what other payment options they’d like.
When you add these alternative payment options, we recommend that your potential and existing customers can see this on the product page.
This way, they’ll know ahead of time that you offer their preferred payment method. It also serves as a vote of confidence that you’re working with secure payment platforms.
Here you can see how Ketnipz implements this.
Pro Tips– Always offer reassurance for safety concerns
– Just like the image above, show when you offer multiple payment options
9. Make Your Sales Team Happy With Better Incentives
Your sales team is important for your business because it not only attracts high-level customers, but also ensures that the company generates high revenues
And often they do so because their compensation or bonus depends on it. That’s why you should redesign your sales incentive. You can start by rewarding the best salesperson of the year with a big bonus or even a vacation.
This helps motivate other members of your team to win more customers.
You can also change the layered structure of sales commissions. Instead of paying lower percentages for very high sales, you should pay higher commissions when a salesperson attracts more customers.
Salespeople love their commissions, and when they know you’re willing to reward them for their hard work, it increases their motivation.
Pro Tips– Set realistic sales goals for your team, so they don’t feel overwhelmed
– Never undercut members of your sales team
10. Update Your Sales Materials
To reduce the gaps in your sales pitch and your business, your sales materials need to be up to date.
By sales materials, we mean product sheets, brochures, quotes, your website, and everything else. Aside from helping your sales team, it also has a huge impact on your customer base. Because with every little discrepancy, your potential customers can start to distrust your brand and choose a competitor
If they don’t, this could lead a user to opt for a subscription plan that leads to future misunderstandings. Over time, these inconsistencies can hurt your revenue margin and even lead to a decline in your revenue growth.
So make sure your website has up-to-date information about your prices, offers, and business. Make sure there’s no misleading information on promotional materials.
Pro Tips– Provide regular sales training to keep your team up to speed
– Give clear notice when you have new policies or changes to your sales materials
If you understand the 10 strategic insights we’ve outlined in this blog post, you can put your business on the path to sustainable and profitable revenue growth. We hope this article has been helpful and wish you the best of luck in growing your business.
What strategies will you use to grow your company’s revenue?