- 8 November 2019
- Written by: Supply Chain
- Category: Digital Learning
Every business owners as well as their employees share one main concern: how to increase sales and boost revenue. From top-level management to bottom, everyone is serious about increasing sales numbers. There is no doubt that sales drive the business. It is what fuel the growth of any company and help to fund the new ventures.
The following strategies can be useful to help you increase sales and revenue:
- •Create Clear Revenue Goals
- •Focus on customer relationships
- •Review Your Pricing Strategies
- •Expand Your Distribution Channels
- •Diversify Your Offerings to boost sales
- •Use Cross Promotions
- •Increase Your Marketing
1. Create Clear Revenue Goals
A good way to get started is to combine your given revenue targets with the market strategy you have created based on an assessment of the past and current situation to generate realistic revenue goals for territories and individuals. After that, it is important to find out which support your sales team needs to reach these goals. It is a good idea to get your marketing team, sales team, and product team together to work on a plan.
2. Focus on customer relationships
As per marketing metrics, increasing customer retention by five percent can increase profits between 25 and 95 percent. It is certain that offering a remarkable customer service creates long-term and loyal customers. This is a good strategy to grow your business. Upselling or cross-selling current customers is significantly more effective and cost-efficient than securing new clients.
3. Review Your Pricing Strategies
Take into account your pricing strategies if your product or service is price sensitive. Get to know what your competition is charging and raise or lower your prices based on your goals. For instance, lowering your prices can increase revenues to make up for lower margins while raising your prices can create a higher perceived value in the minds of consumers and increase your margins while raising your prices can also increase your revenues without increasing sales.
4. Expand Your Distribution Channels
Sometimes, altering where you sell your product can considerably increase your sales and revenues without needing any modifications to your marketing or pricing. Analyze carefully the effects of using online selling, direct mail, wholesalers, retailers, distributors and outside sales reps. Find out how each method can affect your sales volumes, profit margins and total profits. Keep in mind that in some cases, new distribution channels require marketing support.
5. Diversify Your Offerings to boost sales
If your company exists for several years, it might be time to add new products and services to create exponential growth. It might happen that you have saturated the marketplace. The next step is to determine the products your target customers buy that you are not selling and that you think you can make and market profitably. For instance, you might need to replace old products with new ones. As a result, it can lead to a decrease in sales, but higher revenues if the replacement product has a higher price.
6. Use Cross Promotions
It is obvious that the more people you have to promote your product or service, the more sales and revenues you’ll have. One way is to look for businesses that don’t compete with you but which have the same target customer and develop cross promotions. For instance, if you sell sports shoes, sponsor athletes to wear and promote your line. Another way to do more promotions is to collaborate with charities to get them to promote you to their supporters. Not to forget that social media is also a significant tool to build a following generated by satisfied customers.
7. Increase Your Marketing
There is no doubt that to boost your marketing in order to increase sales. Keep in mind that quantity doesn’t necessarily mean quality, hence careful planning, test-marketing and monitoring your results can greatly help to maximize your sales. Go for marketplace research to find out which messages speak to your target audience. Make sure to run ads and promotions in limited locations and check the results before spending your entire budget. Include some way to control marketing communications, such as using coupons, electronic codes or website traffic statistics.
It is essential that your sales team have clear priorities, clear outcomes everyone can measure, clear guidelines everyone can follow and clear goals towards which everyone can work. However, implementing strategies to increase sales and revenue requires not only the effort of your sales team but also the organization as a whole. The key lies in knowing how to reduce risks and exploit opportunities.