4 Strategies to Grow Revenue in Your Small Business

Grow Revenue in Small Business

When you want to grow revenue, many small business owners are surprised when I say that there are only four ways to increase sales in your business. Sure there are hundreds of tactics or methods you can implement – but they all support these four basic strategies:

Get more customers … in current or new markets

Get customers to spend more … increase average transaction

Get customers to buy more often … increase frequency

Get customers to stay longer … customer retention

So before you start selecting the techniques to grow revenue, be clear on what you want to accomplish. It keeps you focused on the desired outcome and makes it easier to choose the right tactics to get there.

4 Strategies To Grow Revenue
Get More Customers.

This is the most obvious and common approach when it comes to growing sales. It is also the most expensive method in terms of both time and money. As a result, I typically recommend that my small business clients maximize the other three areas before focusing their resources here. You can get more customers with existing offers to new targets or new offers to existing targets. The key to success comes from matching the offer with the needs of the target and communicating it in a way that is compelling to them!

Get Customers to Spend More.

Often overlooked, this is one of the easiest ways to grow revenue. If you could increase every transaction by just 5%, what would that mean to your business? So how can you do this? Raising prices is certainly one option, but you can also promote premium products, upsell or cross-sell complimentary products or services or expand payment options or plans.

Get Customers to Buy More Often.

It’s not enough for customers to buy, you want them to buy again and again. So you need to keep them coming back. You need to stay connected and give them a reason to do so. Maintain a customer database and use it to promote customer only offers via mail, email or text. Start a monthly continuity program or newsletter. Use a reminder system. Develop followers on social media and promote special offers to them. Educate customers on your full range of products (don’t assume they know).

Get Customers to Stay Longer.

If your new business simply replaces lost customers, you gain nothing. Keep the customers you have. It costs 6 – 7 times more to get new ones. Plus existing customers tend to be more loyal and less price sensitive. If you could keep every customer for an additional month or year, how much revenue would that represent to your business?

The key to retention is simple.  To quote one of my clients, deliver what you promise and then some! Here are a few techniques to consider: thank you or bonus gift with new or first purchase, send birthday and holiday cards, follow-up call after purchase or job completion, ask for testimonials, recognize customers in newsletters, blogs or social media, and give ‘free’ information or advice.

More Ways to Grow Your Business

For new business improvement articles, exclusive tools and insights on entrepreneurship, click here to subscribe to my monthly eNewsletter. When you do, I’ll also send you my free eBook, How to Build Profit Through Leverage.