If you’re starting the New Year knowing you need to increase your revenue but not sure how, here are 3 simple ways to grow your turnover – without increasing your number of leads!
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Increase Conversion Rate
Do you know how many leads you’re getting in – per month, per week, per day? How many of those are converting to sales? The first step to increasing something is knowing where you’re at, so if you’re not tracking & measuring your leads, this is the first step.
Then, look at what you can do to improve your conversion rate. It might be a better phone script, better quoting, better systems, being more efficient or timely, sending better material out, etc. What do your customers want, and are you doing everything you can to show them you can provide that?
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Increase Average Dollar Sale
Of the sales you’re currently getting, what strategies do you have in place to increase each customer’s average dollar sale? There are many different opportunities to do this – Think of McDonald’s famous saying, “Do you want fries with that?”. What “fries” do you have in your business. What can you suggestively sell as an add-on to what your customers are buying, that will increase the value of the sale? You have probably seen when purchasing something, especially online, a message such as “People who bought this also bought these items” (as a way of enticing you to look at these items and add those to your shopping cart, too!).
There also may be something you are not currently charging for, that you start to, i.e. freight. Maybe freight was previously included in your sale, but it’s a great way to increase your average dollar sale without actually increasing your sale price.
Another way is to increase the price of your products or services, just by a small percentage, and the start of the New Year is a great time to do it (and often your customers may already expect there to be an increase in price). This strategy alone might be enough.
These are just some ways to increase your average dollar sale, and small amounts compounded over the year can make a huge difference.
Again, tracking your numbers is key. One client of mine increased their average dollar sale from $730 to $1,300 and you can imagine how much of a difference this made to their profits in just 12 months.
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Increase Number of Transactions
How can you get your customers to come back, over and over again? The more times a customer returns, the more revenue you will make.
Maybe you can investigate adding other products that they like, and keeping on top of the trends and wants of your target market.
Is your customer service up to scratch? Are you providing friendly service to your customers, and treating them like royalty? (after all, they pay your wages!) Developing a welcoming dialogue, and building relationships with your customers, will mean they’re more likely to come back as they build trust with you.
Another (often forgotten) method is following up with your customers. Were they happy with their product or service? The saying goes, “If you haven’t contacted your customer in 90 days, someone else has”. Do you have a follow up system? Do you follow up their buying cycle? If you know that your client is likely to run out of their product in 90 days, do you set a reminder to them at 80 days to remind them to repeat-order? Better yet, do they have a regular shipment of their favourite products?
Just imagine if you increased the number of transactions by just 1%, how much would this increase your revenue long term?
All these strategies can dramatically impact your bottom line, without any additional marketing, leads or customers through the door.
Which strategy do you think would give you the biggest bang for your buck? I would recommend working on one strategy at a time, perhaps one a month over this quarter (unless you have a large team who you can delegate a strategy to 3 different team members), and getting it automated so that it becomes an efficient and ongoing system.
Above all, track your results. In 12 months’ time, I can guarantee your revenue will increase by merely actioning these 3 strategies alone.
Wouldn’t that be a great way to improve your 2019?
Copywriting Credits: Renee Jongsma