The thing about business is, it’s actually very simple. Contrary to popular belief, it’s not businesses that are overly complicated, rather it’s the people trying to run them. People are diverse, with different backgrounds and mindsets, and that is why it can often be tricky to find the right individuals for a team and make them collaborate. But as far as making progress in business is concerned, you need not worry. If you’re struggling with generating revenue with your business and want to increase your sales, there are just three important rules you have to follow.
1. Getting more customers
One of the things we all look for when running a business is acquiring customers. It’s always ideal that your business is attracting a great number of people because that ultimately translates to more profit.
The process of getting customers can vary depending on the type of business. In some cases, this can become a 2-step process, which means you won’t necessarily be getting a customer directly. The process can include two steps:
✔ Lead Generation: This includes creating a lead, perhaps online, to get customers through.
✔ Conversion: In this step, the lead is converted to a sale.
While the process of attaining customers is important, it can be a challenging task because it requires a significant amount of capital. To attract more people, you’ll need to advertise, and in the present day, this is nowhere near cheap!
For this reason, businesses which have just started should focus more on getting customers, since this is vital for their survival in the market. However, those which have been around for a while can compromise on this step and use the other methods to increase revenue.
2. Getting Your Customers To Come Back More Often
This step revolves around the idea of increasing the frequency of purchase or transactions that people have with your business. At this point, you already have a set of customers. There are people who are impressed with your business and spend their money for your services, now your job is to improve this relationship.
This can simply be done by interacting with existing customers and encouraging them to do more business with you. Let’s say you’re providing people a service, if you suggest they visit you more often, you can easily increase your revenue. For example, making a simple suggestion to a customer to visit you every three weeks instead of every four weeks can increase your revenue five times. That’s huge, and it costs you nothing!
While most businesses focus primarily on acquiring customers and invest huge amounts of money on it, this measure can prove to be highly beneficial for you. Thus, spend some energy and time in interacting with your customers, and this improvement in a relationship will prove to be the answer to all your prayers!
3. Getting Your Customers To Spend More Money On Each Visit
This way of generating revenue is all about getting more value from your existing customers, and the way to do that is by increasing the transaction size. If you can convince your customers to spend a little more money on their usual visits, this can translate into huge amounts of additional profit for your business.
An excellent application of this strategy can be seen in McDonald’s idea to provide customers the option to supersize their meal. The customers visit McDonald’s and order their usual meal, and at this point, the cashier asks them if they’d like to spend a couple more dollars and supersize their meal. Even if 10-15% people say yes, imagine this in all branches every single day, and the size of the profit will be mind-boggling. They just add a little more quantity to each order, and voila! Giant profits come their way every day, thanks to this brilliant idea.
Applying this idea is crucial if you want to get more sales with little input. People generally focus all their investment and time into acquiring new customers, but if you focus on attracting and selling more to existing customers, it can do wonders for your business!
The bottom line is, if you want greater profits, you should start working on these three strategies today. Focus on the ways you can get new customers, then think about how to get those customers to visit you more often, and finally, come up with innovative ideas to encourage people to spend extra money on their transactions.
If you can nail these methods, then rest assured that a more successful business is just waiting around the corner! Good luck!
