The subject of increasing revenues is one that is constantly under scrutiny in companies, both large and small. Though most business owners are aware of the need to send their revenue streams skyrocketing, few can create and implement a strategy that does so effectively – and consistently. Now, experts in the field have come to the fore with three strategies that will assist any business in revenue maximisation, and they are all related to expanding existing markets.
Any business owner must believe in what their business has to offer. However, even if you are adamant that your product or service is beyond compare, adding a complementary service or offering allows for increased revenues. In other words, taking your perfect product or service and thoughtfully adding to it makes it better.
There are a variety of ways you can add value to your product or service. Here are three ways you to boost the value:
This is when you offer a product or service for free which complements the functionality or usability of your product. You could supply a customer with a free cover for their iPad or you could offer free training for software you sell so that your customer gets the most out of the product.
Bundling products together
If you have a range of products that work well together, you could bundle them together and offer them at a slightly discounted price. This may encourage your customer to buy the whole suite rather than a standalone product or service.
Many customers love being acknowledged for their loyalty. For these services to be successful, it is important that you make it easy for the customer to redeem loyalty points and understand how the loyalty programme works.
When deciding to add value to your offering, it is important to ask, “what types of value-adds complement your offering?” After all, selling a lawnmower with a free spa voucher may not make sense. However, offering a mobile phone with a free cover or a price-reduced internet bundle could do wonders for your sales.
Expanding into other locations
Many businesses hold back on expanding geographically because they believe the cost to the business will be too large. However, this is a strategy that holds businesses back, and as many have found, expanding their offering into other locations can double their sales. This is certainly true of Vodacom. The business found that consumers in rural areas were not using their products as they had limited access. Rather than shrug their metaphorical shoulders and give up, they made a concession that has worked well for them. Now, hawkers and door-to-door vendors can sell airtime and data bundles without the need for a physical store. This brings the product or service to the consumer, rather than asking the consumer to go out and find it.
Cooperation wins the game
It is very simple for businesses to become immersed in their product or service silos, but more and more these days, these organisations are seeing the benefit of creating cooperative sales contracts with other companies. For a business selling products, this means going beyond the distributors and looking for new areas in which to sell. A computer manufacturer may see the benefit of a sales agreement with a computer software developer. Since buying one facilitates buying the other, this is an agreement that is beneficial to all. It all begins with looking for complementary products and sharing marketing, advertising and sales expenses.
There are many ways to increase your productivity and sales, and thus increase revenue with very little risk. However, the aforementioned strategies are general and may need to be adapted to suit your business before they come to fruition, and you start to see results. Either way, you are sure to benefit greatly by exploring practical ways to expand your existing market.
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