How to Increase Sales Revenue
Every business needs to make money so it can thrive and expand. However, it is sometimes difficult to increase your business’s sales revenue. The following are things that you can do to increase your sales revenue.
Create Defined Goals
To increase your business’s sales revenue, you need to set a clear revenue goal. This will help motivate you and your employees to find ways to boost sales, especially if you will give your employees a bonus when the goal is achieved.
When you create your sales goals, also create a clear plan that will help you reach those goals. Create short and long-term goals so you can periodically check-in and determine if sales are on track. However, make sure the short-term sales goals are not too short. The short-term goals should be evaluated every 2-3 months or so.
If possible, create a step-by-step plan to increase your sales revenue. Collaborate with your team to create this plan. If the plan does not increase your business’s sales revenue within 6 months or so, determine what isn’t working and change the plan. After a few months, determine if the new plan is working and increasing your revenue.
To increase your sales revenue, you will need to increase the prices of products and services that your company offers. However, you can’t raise them too much at once. If you raise prices by a few dollars at one time, customers won’t want to purchase the products because they feel they are too expensive. Instead, raise prices by about .50 cents at a time. Customers likely won’t notice the price increase. If they do notice the change, they will be able to justify it and will still purchase the products.
Find out what your competitors are charging for similar products and services. If you are selling similar products for a higher price, customers will likely choose to buy from your competitors rather than you. This will lower your sales revenue rather than increase it, which will defeat the purpose of increasing prices.
Don’t increase prices right before the holiday season. Customers will think that your prices are increasing before holiday sales start, so they will wait to purchase your products and services. They will be extremely disappointed if the price isn’t lowered, and your sales will likely decrease and your revenue won’t increase.
Communicate with Customers
If you want to increase your sales revenue, communicate with your customers, both past and current. People like being heard by companies, and they like giving feedback most of the time. They especially like giving feedback if you give them an incentive to do so, like a coupon or free item.
If past and present customers are happy with your company, they will likely mention you to their friends and family. They will also likely buy from you again, which will increase your sales revenue.
Send out a quiz or survey to people who have ordered from or used your company’s services. Make sure the quiz or survey can be done in 5 minutes or less. People likely won’t complete a survey that takes more than 5 minutes to complete. Make sure the questions are short and easy to understand or you may collect information that isn’t correct. If you show customers that you want your company to constantly improve and will take their critiques and comments into account, they will be more likely to purchase from you in the future.
One way that many companies get feedback from customers, especially in regards to products, is through product reviews. These reviews can be seen below the product description, which helps new customers decide whether or not they should purchase said product.
Make sure that it is easy for customers to contact your customer service department. List an email address, chatbox, phone number, and all of your social media platforms on your website so it is easy for customers to contact you.
Make sure that repeat customers are satisfied. To make people want to purchase products or services from your business again, give them an incentive to purchase another product or service. More information about what incentives you can offer is below.
Send emails to past customers when there are sales, when products they have looked at in the past are back in stock or on sale, and when new products and services are released. You can also send them holiday cards and newsletters. However, make sure customers can sign up or stop these emails, as some people get annoyed when they are constantly getting emails from a certain company. If they are irritated with your company, they won’t buy things from it or use their services. Try only sending emails to customers once every week.
Your customers are who will, in the end, increase your sales revenue. If you make them happy, they will help you increase your sales revenue, even if they don’t realize it.
Expand Target Audience
To increase your sales revenue, expand your target audience. You can do so by increasing the number of products and services you sell or buy by opening a physical store location. If you already have a store open, open another store in an area nearby. You will open your doors to new customers and new revenue streams, which will help your business make money through sales.
Advertise your business to people further away, even if you only have one physical store open. Advertise to cities and towns up to an hour away. When they are in the area, they will likely stop by and see what you have to offer. They will also look at your website and see if it is possible to have your products sent to them so they don’t have to drive anywhere.
If you increase the number of people your products appeal to, more people will purchase your products or services. This will increase your sales revenue long-term, and it doesn’t take long for people to purchase products they want to learn more about.
Bundle Products and Upsell
If you sell two or more products together in a bundle that is cheaper than it would be if a customer bought the products separately, you will sell more products and your sales revenue will increase. People will feel like they are getting more for their money, so more people will complete purchases. Although it may seem like you are losing money by offering product bundles, in the end, you will make more money.
You can also offer free products to customers if they pay a certain amount of money. The more money they spend, the more money your business will make in sales revenue.
Upsell similar products and services. For example, if a nail salon tells their customers that are getting their nails done about their pedicure services and how they can get a discount if they get a manicure and pedicure, the customer will be more likely to purchase the more expensive services.
Motivate Your Employees
Your employees talk to and communicate with customers. They know what they buy and what they avoid. They themselves may be customers. Motivate your employees to increase the number of sales and your business’s sales revenue. You can do this in many ways, including bonuses, parties, discounts, and gift cards to their favorite stores. You can even give them free products or services from your business.
If employees are happy working at a company, they will be happier at work. Customers see that and want to support businesses that support their employees.
A business with happy employees makes a successful business that is fully staffed. People who are unhappy with their jobs are leaving in droves so they can find better opportunities where they are happier while at work. A short-staffed business will cause customers to not want to buy from them because it shows they are not nice to their employees. Make sure your employees have benefits and are happy and taken care of while at work.
Listen to your employees. If they say you should offer a sale, consider it. They know customers and you know the business, so you should work together. A heard employee is often a happy employee.
Offer discounts to new or repeat customers. Customers like discounts, especially if they have given you money in the past. If you give them a discount that they can use on their next purchase, they will be more than likely to purchase from you again. This will increase your sales revenue, although it might not happen immediately.
Have sales periodically. Most of the time, businesses will offer sales around holidays and special events. If you need to get rid of your stock of a certain product, put it on sale. Customers are more likely to purchase from a business that they haven’t purchased products from in the past if they are offering a sale. They feel like they are getting more for their money, and they may purchase more than they were expecting to.
Increase Online Presence through Social Media
Social media is key to increasing your sales revenue. You can help increase your business’s sales revenue by having a website for your business and by being present on social media. Have a business page on Instagram, Facebook, and Twitter, which are a few of the largest social media platforms. Tell customers to follow your business on all of your social media pages. You can include the page name and a QR code on your business cards and flyers.
Tell your followers about sales that you are offering and when new products or services are being offered. On your social media pages, include a link to your website. Also, when new people are hired, introduce them to your followers. This will help your customers feel connected to your business. If they feel connected to your business and feel like you actually care about your employees and customers, they will be more likely to spend money through your business.
On your social media pages, show things that your employees and the owners of the business do in the community. If you are hosting a donations box or volunteering somewhere in the community, showcase it. This will make more people want to buy from your business, which will increase your sales revenue.
Increase the Number of Payment Options
If you only support a few payment forms, offer more payment options. For example, some businesses can’t accept payments from MasterCards, which severely limits the number of people who can purchase items from said business.
Make payments extremely easy. If it is hard for someone to check out, they will go to another business where it is easier to do so.
On larger purchases, offer small payments to be paid over a certain amount of time. You can determine how much they pay each month or each week depending on how much money they spent. You may lose a small amount of money right after the purchase is made, but you will increase your sales revenue in the long run.
Reduce Shipping and Delivery Charges
People don’t like paying shipping and delivery charges, so if you want to increase your sales revenue, lower shipping and handling charges. Although you may lose a small amount of money from shipping revenue, you will make more sales revenue.
Make it so if people spend a certain amount of money, they get free shipping. Free shipping makes people feel like they are spending less and making their money go further, which everyone wants to do. If they have to pay for shipping, they feel like their money is being wasted and the products they just purchased cost more than they are worth.
If your products are slightly more expensive than similar products at another store, but your business offers free shipping and theirs doesn’t, they will be more likely to buy from your business rather than your competitors. This will increase your sales revenue.
If you stop charging for shipping but increase the prices of your products slightly, your customers likely won’t notice. Even if your products are slightly more expensive than they have been in the past, but you don’t charge for shipping, customers will likely justify the purchase when they weren’t able to in the past.
It sometimes takes time to increase the amount of sales revenue that your business earns, but if you do what is mentioned here, your business will make more money.