Beyond fulfilling customer needs and providing exceptional product and service delivery, business executives worldwide want to increase revenue by improving their bottomline. It is commonplace to see them implement different marketing strategies to increase profits.
Some strategies involve increasing your workforce to cater to customer demands or readjusting your marketing budgets to introduce a service or product offering.
Not every business can afford to use these strategies to get the results they want. But you can improve your bottom line by streamlining your business and putting in place important financial strategies.
At Expense To Profit, we provide business executives with our inside data and information, strategic recommendations, as well as proven tips to lower business expenses and increase profit. So, how do you grow your business revenue without increasing your marketing budget or adding to your workforce?
Let’s explore some options to consider:
Target Repeat Customers
While business executives and heads of marketing departments focus on expanding their service offerings to new customers, they neglect a considerable aspect of their market: repeat customers.
According to verifiable data, repeat customers spend an average of 67% more than new customers. Conversely, 82% of companies agree that retaining customers is less expensive than winning a new one.
It is significantly better to target your repeat customers, as they are already familiar with your services and are more likely to continue to patronize you than another business.
A simple gesture like sending a customer appreciation email, offering limited discounts and freebies, or offering referral incentives will influence them to make their next purchase and lead more people to your business.
Reduce Overhead Costs
Another way you can increase business revenue is to lower your business expenses. Your income and profits are directly tied to how much money you pay for expenses.
You can start by finding new vendors and suppliers for your business. We have extensively covered How Your Vendors May be Overcharging You without Your Knowledge and how vendors are fond of raising supply costs – just because they can. It is essential to review your expenses to determine if your vendors are ripping you.
First, you can ascertain the market price of the proposed goods and compare your vendor pricing. Next, you can follow the tips on selecting and managing your vendor partners. You can also deploy reverse auctions to find your next vendor.
Increase Productivity Process
You can also increase your business revenue by improving the production process of getting the products and services to the customers. Improving the process of producing the product or service will reflect on your bottom line at the end of the day.
You can start by using time-tracking software to monitor each task, reduce production waste, and automate tasks to increase efficiency and revenue.
Encourage Upselling and Cross-selling
You can also increase revenues by encouraging upselling and cross-selling. You can include supplementary items on your product pages and convince your customers why they need to add that product to their cart.
With insightful product descriptions, your customers will see the benefits of adding a supplementary product instead of reducing their purchase power.
Enable Alternative Payment Methods
Your business may record higher revenue by offering convenient payment options at checkout. Customers are looking for ease and simplicity in moving through the sales funnel, ordering and paying for ordered items.
Beyond credit and debit cards, and online payments, financing solutions, you can implement payments in cryptocurrencies to target new demographics without expanding your marketing budgets.
According to current data, 53% of Americans agree that crypto is the future of modern financial banking. There are several benefits to introducing this form of payment option to your customers. For instance, there are lower transaction fees compared to traditional banking systems.
Additionally, it is a global digital currency, introducing your business to worldwide patronage. On the plus side, it shows that your business is in tune with the times, positioning it to a new demographic.
Change Shipping and Delivery Charges
Another strategy to increase revenue is lowering your shipping and delivery costs but consolidating them with an increased item purchase. Some customers may be reluctant to purchase items if the delivery charges are expensive.
You can solve this problem by convincing the customer to order more items and get free shipping once a particular price cap is met. For instance, they could get a 50% discount on shipping costs when requested items are above $200 or a 100% discount for items above $350.
Build Your Brand Reputation Online and Offline
Lastly, you can increase business revenue by building your reputation within the industry online and offline. Nobody patronizes a business known for selling broken products or offering lousy customer service.
Thus, it is recommended to focus on delivering high-quality product offerings that compete in the marketplace. More so, have your customers leave reviews and testimonials and capitalize on them to sell your business to a broader audience.
Improving your bottom line is essential for business growth. However, you do not need to increase your workforce or marketing budget. All you need to know is to follow these simple steps and contact an expense reduction consultant to help review your operations and give insightful recommendations to significantly lower your expenses.
Expense To Profit is a leading expense reduction firm dedicated to providing insights, recommendations, and strategies to reduce expenses while boosting revenue. You can reach out to us to better understand your business needs and goals and design strategies to help you.
Published by Marc Freedman
Marc currently serves as our Chief Cost Evaluator, expertly advising our client management team on how to help you successfully achieve your business and financial growth goals. A respected mentor to all he consults with, he is an avid collaborator and contributor to the spend consultant community, guiding thought leaders to formulate, design, and install the best operational solutions available to their clients.