Driving Revenue And Building Value

One of the most common questions we get asked is “How can we drive revenue and grow our top line? The truth is, there is no silver bullet but there are a number of approaches to consider.

Upsell your customers

When your customers make a purchase, do you create additional offers for them at time of checkout?  Offering other products at the time of purchase is a proven way to grow revenue.  The key is that it should be relevant to the original purchase and it shouldn’t be a large ticket item.

Increase the transaction size

Why not offer your existing customers a discount if they purchase from you in bulk?  A recent client used to charge on a per visit basis.  That option is still available but now they also offer a “10 pack” of sessions at a discount.  Within three months, they were selling 10 visit packages more than single sessions.  It also increased customer retention, as they were able to build stronger relationships over the longer time commitment.

Increase the frequency

If you’re average customer purchases from you once every 6 weeks, have you tried to incentivise them to purchase every 4 weeks? With an average sale of $50, a 6-week buying cycle would produce an annual customer value of $425 a year.  If you shorten that to once every 4 weeks, that same customer is now worth $650 a year to your business.

Increase prices

Most business owners are terrified of raising prices, imagining a mass revolt from their customers at the mere suggestion of it.  It’s all in the approach.  

The last thing you want to do is to not raise your prices for years, then launch a huge price increase because you realized that you can’t be profitable without one.  Offer increases in small amounts and make price changes gradually so the impact is small on your customers.  With each price increase, offer your customers a chance to buy in bulk at the old pricing before it goes into effect.  You may find that your increase results in a temporary spike in sales for your business.

While you may have explored alot of these opportuities over the years, when was the last time you undertook a rigourous analysis of your product range and the untapped opportunities to drive revenue? Have you only picked "the low hanging fruit"? Consumer behaviour changes over time so they are worth reconsidering.