Knowing how to increase a company’s revenue is crucial for at least three reasons: it means that the goods and services marketed by the company are being used by customers; enables greater net profit and boosts business growth in the market.
However, optimizing revenue may not be an easy task, especially in truly competitive markets. This is exactly why it is necessary to have well-established strategies, know how to attract customers’ attention and establish attractive prices for consumers.
In the following topics, we present 6 tips on how to increase your company’s revenue and outperform your competition. So keep reading!
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Think of an AIDA-like strategy
Sales volume and revenue are directly proportional factors. That is, keeping everything more constant, the more you sell, the more bills. The big challenge, in this case, is knowing how to increase your company’s sales — and the AIDA-type strategy can help.
To be clear, the term AIDA is an acronym of four words: attraction, interest, desire and action . It consists of a strategy, originally from marketing, which depends on attracting the attention of your target audience, promoting interest in your products, then awakening the desire and purchase action . In other words, it is a funnel that takes you to the sale.
So think about how your customers will go through each of these steps. It is possible to get their attention with a billboard or a fun advertisement on the internet, it depends a lot on your target audience. The fact is, if you do it correctly, your revenue will increase.
And to get the right communication with your customer, you need to understand the buying journey. Access the banner below and check out the e-book that explains everything about it, as well as strategies for customer loyalty!
Correctly formulate your selling price
The selling price of your products is really important. If it’s too high, it inhibits consumers; and if it is too low, it can cause financial loss. However, the ideal price has the potential to optimize your fiscal year billing.
There is a tripod for pricing. At a minimum, you need to consider three items:
- customer value perception;
- prices charged by competitors;
- total cost of products.
In the first case, the ideal is to look at the customer. How much is he willing to pay? The exercise is to charge the maximum without losing a single customer. You also need to look at the competition — after all, your price can’t be too far from the market average.
It is still necessary to consider the total cost of the product, which involves direct costs (with the acquisition of the input) and indirect costs (related to the maintenance of the company). If costs are disregarded, the final price established may be insufficient to generate net income.
Adopt cross and up selling tactics
To increase your income, you need to rely on good sales tactics . The ideal is to take advantage of your customers’ interest in your products to: i) sell more products and/or ii) sell superior products. In this case, cross and up selling are essential.
The term cross selling means cross selling . It consists of offering complementary items to the product the customer is interested in. If he’s buying pants, for example, take the opportunity to offer him a shirt and a pair of shoes. This increases sales.
The idea of up selling , in turn, consists of offering a superior and more expensive product. If your customer wants to buy a notebook with an i3 processor , take the opportunity to offer a state- of-the-art i7 . Thus, in addition to selling something better, you will be leveraging your income.
Another very important lever for companies is the speed of service. With this agility, it is possible to make contact with multiple customers, without leaving quality aside. To learn more, access the form below and see the e-book!
Negotiate prices with your suppliers
A good sale starts at the time of purchase. Therefore, it is necessary to negotiate an attractive purchase price for the inputs, as this will enable them to offer lower prices to customers and be able to stand out from the competition. The result? Revenue growth.
Therefore, contact your suppliers with the goal of reducing costs. It doesn’t have to be a lot, between 2% and 5% can make a big difference — yes, earn on pennies. See below some tips that can help you in this process to increase revenue:
- have at hand the prices charged by other suppliers;
- find out how much, on average, your other competitors are paying;
- have a specific cost reduction target (3%, for example);
- don’t delegate the task, get personally involved in the negotiation;
- be willing to give up as well (for example, paying in shorter terms).
Increasing revenue is also about controlling your inventory
Inventory is a sore point—and often overlooked. If there’s too much inventory, you run out of capital and can’t make money. If you are short of stock, you lose the desired sales; Therefore, you need to know the order point of your stock.
The order point is the ideal time to make new purchases, ensuring you have enough to serve your target audience, but without getting overwhelmed. To do so, note:
- the minimum stock point you must have;
- the volume demanded by its consumers;
- the delivery time of your suppliers.
These three variables must be addressed when calculating the order point . As a result, you will need less working capital, will be able to have a greater diversity of products, will have less maintenance costs and higher yields with the items that are consumed.
Ensure quality customer service to increase revenue
Great customer service generates a number of benefits—loyalty being the main one. The best thing is that loyal customers often return to your company, spend more and market your services by word of mouth. Soon, the revenue can grow.
To offer great service, it is necessary to think in terms of sales and after-sales. Make the initial service agile, make available several channels (online or offline) to talk to your company, show that you are always available and that your team is trained.
In this process, technology plays a key role. A good help desk software , for example, can streamline the entire service, making it multichannel, pleasant and effective.
See, now you’re on top of the topic. All these tips can (and should) be adopted without neglecting the customer experience. Therefore, invest in systems that improve communication with your target audience, generating more agility in solving demands.
But before investing, how about checking what the Help Desk can do for you? Access the banner below and take the free trial of Movidesk, a system designed to control and organize service!