4 Ways to Increase Your Revenues - Action Plan included...

The purpose of enterprise is to generate revenue, and the mission of owners and executives is to deliver increased revenues year on year. The major strategies concerning the ways to generate revenues and the manner is which to increase existing revenues can be summed up in 4 methods to increase revenue. If you want your business to bring in more money, there are only?4 Methods to Increase Revenue are:

1. Increasing the number of customers
2. Increasing average transaction size
3. Increasing the frequency of transactions per customer
4. Raising your prices

Imagine you’re operating a restaurant, and you want to increase the amount of revenue that that restaurant brings in. Here’s how to apply these strategies:

1. Increasing the number of customers?means you’re trying to bring more people in the door. This strategy is relatively straightforward: more visitors to your restaurant will equal more tabs, which (assuming the average transaction size stays the same), will bring in more money.
2. Increasing average transaction size?means you’re trying to get each customer in to purchase more. This is typically done through a process called?upselling. When a customer purchases an entrée, you offer them appetizers, drinks, and dessert. The more of these items the customer purchases, the more they spend, and the more revenue you collect.
3. Increasing the frequency of transactions per customer?means encouraging people to purchase from you more often. If your average customer comes in once a month, convincing them to patronize your business once a week will increase your revenue. The more frequently they visit your establishment, the more revenue your restaurant will bring in, assuming the average transaction size stays the same.
4. Raising your prices?means you’ll collect more revenue from every purchase a customer makes. Assuming your volume, average transaction size, and frequency stay the same, raising your prices will bring in more revenue for the same amount of effort.

Beware of Pitfalls: Not every customer is a good customer. Some customers will sap your time, energy, and resources without providing the results that you’re looking for. If you’re spending a lot of energy serving customers who don’t come in often, have a low average transaction size, don’t spread the word, and complain about the price, it doesn’t make sense to attract more of those customers.

Trade Tips: Always focus the majority of your efforts on serving your ideal customers. Your ideal customers buy early, buy often, spend the most, spread the word, and are willing to pay a premium for the value you provide.

The more ideal customers you can attract, the better your business.

Questions to ask yourself:

• How can I use the 4 methods to increase my business’ revenue? (see action plan below)
• What can we do to encourage our customers to become more like our ideal customer?

Trade Tactics:

“The product that will not sell without advertising will not sell profitably with advertising.”

Albert Lasker, former CEO of Lord & Thomas and pioneer of modern advertising

1. Avoid wasting time and energy on customers that aren’t a good fit.
2. Not every customer is a good customer. Customers that require more than what they are worth, aren’t worth attracting in the first place.
3. Some businesses actively encourage their customers to purchase from the competition if they are not a good fit.
4. The more clearly you can define your ideal customer, the better you can screen out the customers that are not worth your effort, and the more you’ll be able to focus on your best customers.

Increasing revenue comes down to customer loyalty. Assuming you already have a product or service that your customers value, focus more time and energy on the customer experience and developing genuine relationships with your customers. Foster customer and brand loyalty, and they’ll be more likely to come back as well as recommend your business to others, thus increasing your revenue stream. -

Action Plan to increasing your revenues:

How to increase revenues and sales

1. Set defined goals. Make quantifiable goals for how much you want to increase your sales and revenue.
2. Target repeat customers.
3. Target former customers.
4. Grow your geographic reach.
5. Refine your pricing plan.
6. Add products or services.
7. Bundle products or services.
8. Upsell products and services.

---------------------------------------------------------------------------------------------------------------

Sponsored Promotion:

Use Jamgo.io to increase your revenues by selling anywhere, to anyone at anytime.

Selling made easy!

Connect your offline customers to your online store with SMART QR, no coding or software installation required ! Choose from ready design templates to suit your marketing needs and generate your catalogs with one click. Let your customers find you anywhere around the world.

Create Your Store

---------------------------------------------------------------------------------------------------------------