The next step after getting your business started is to figure out how to increase revenue. Ann Marie Puig, a successful entrepreneur and master business consultant from Costa Rica, reveals the secrets to making this happen.
You can do this by expanding your customer base. You’re trying to increase the number of customers. It is clear that more customers will visit your store or your eCommerce platform, which means more traffic, and, ultimately, more revenue.
Puig says, “Learn from past customers to attract new customers. Review your customer base to determine why they are drawn to you.” In addition, if you have conducted a speaking engagement that saw an increase in traffic, then look for other similar opportunities.
Revenue can also be increased by increasing the size of transactions. This means that every consumer who makes a purchase buys more. This can be achieved by upselling, or offering discounts for multiple purchases made in one visit.
You can do this by suggesting complementary products that they might be interested in purchasing. It is possible to make more money by upselling an administration or integral item after you have won a client.
Revenue will be increased if customers make more purchases. For example, a customer who makes a purchase once per month can be a motivator to make more purchases. Retention services can be used to encourage customers to return more often. Don’t forget about past customers.
Puig asserts, “Keep in touch with the business through email campaigns and email newsletters so that their minds will never wander.” It costs less to keep clients coming back than to find new clients, so keep the communication open.
This is the obvious option – raise your rates. It is important to evaluate prices regularly to make sure they are competitive but also to keep them in line with market costs and expectations.
You’ll get more income for each client who buys you. If you accept that your volume, normal exchange size and recurrence are equal, increasing your costs will result in more income for the same amount of exertion.
If you have more experience or new skills, increase your prices. You may initially need lower rates in order to attract customers. However, once your customers understand the value of your products, and your ability to provide exceptional customer service, increasing prices will be justifiable.
You can’t raise prices arbitrarily in most cases. Products must be promoted in a way that increases perceived value. Promote prices along with the value that customers will get for the goods and services they are purchasing. Importantly, however, you must also consider your company’s worth.
Your ideal customer is your target client and has a very specific definition. The ideal customer is someone who buys early and often, is most likely to spend the most, and is willing to pay more for quality.
