6 Ideas to grow revenue for your business

Of course every business owner aims to grow revenue and profitability for many reasons,  growth, expansion plans, management buyouts or share price performance to name a few.

Here we look at 5 ideas to help you to grow revenue and profitability:

1. Grow your customer base

More customers usually mean more revenue. A bigger customer base can come from growing your established product and services, for example, by opening a shop or office in a new location. It can also come from increasing your online reach, potentially achieved via advertising, or organic traffic to your website using search engine optimisation (SEO).

2. Focus on retention

Once you have good clients, you need to work hard at keeping them. Customer relationship management (CRM) technology can help businesses build and manage relationships. Working with a targeted approach to satisfying customers and offering a personal approach, delivering on time and at the right price are key to retaining clients. Remember, it’s 10 x cheaper to retain a client than find a new one. So having a means of targeting clients with bespoke offers, such as a good CRM system is critical.

3. Customer service and support

Good customer service is vital to customer retention. It’s well known that customers quickly leave suppliers with poor service. I’m sure you can think of some examples in your personal life. Exceptional customer service can lead to repeat business – as well as free marketing if the customer then recommends you to friends.

4. Find new revenue streams

Creating new revenue streams such as new products or services and areas to add value, will grow your revenue.

5. Refine your pricing strategy

Raising or dropping your prices can have a big impact on revenue. If you’re able to raise your prices and retain sales volume, then revenue will increase. However, it’s often better to lower prices to attract more sales, grow revenue and perhaps take market share from competitors.

At the same time, regular pricing reviews with suppliers will ensure you get the best price on raw materials and other costs.

6. Data-driven engagement

Businesses have a huge amount of customer data at their fingertips – such as purchase history, location and previous engagement – to create bespoke offers and price proposals. The message and timing of promotional offers can be adjusted based on customer preferences. In short data analytics will often suggest  ideas to grow revenue.

Furthermore, you can also use analytical data to see which of your products are most popular. This can help you identify areas of your business to grow and invest in, as well as which products are underperforming. In which case you could change it’s pricing, offer a discount or retire it. As an aside, this also lends itself to better forecasting and stock control.

 

Harnessing digital technologies to grow revenue

In today’s evolving digital landscape, businesses should look for innovative ways to thrive and stay ahead of the curve. By embracing digital solutions, companies can identify untapped opportunities, enhance customer engagement, and drive sustainable revenue growth.

‘With more than 4 in 10 UK SMEs adopting more technology since March 2020 and 94% reporting this adoption has been “for the better”, ensuring financial controls are tight across the myriad of platforms available is crucial for ensuring you can grow your margins’. Source https://www.americanexpress.com/en-gb/business/trends-and-insights/articles/how-to-increase-profit/

We have help hundreds of clients adopt a digitally supported business strategy, aligned to their goals and objectives which gives them the platform to maximise the potential for growth, revenue and profitability.

By developing custom solutions for clients, we have help them stay on top of the opportunities offered by advances in digital technology whilst maximising the current potential of their business.

Here are 5 things to consider when thinking about a digital strategy:

1. 1. Stay Agile and Adaptive: The digital realm moves at lightning speed. Be ready to pivot quickly and capitalise on new opportunities as they arise.
   2. Leverage Data Insights: Harness the power of analytics to gain deep insights into customer preferences, behaviour patterns, and market trends. Use these insights to tailor your products, services, and marketing strategies to meet evolving consumer demands and provide ideas to grow revenue.
   3. Embrace E-Commerce and Omnichannel Experiences: Invest in robust e-commerce platforms and seamless omni-channel experiences that allow customers to engage with your brand anytime, anywhere.
   4. Explore Subscription-Based Models: Subscription-based business models offer a reliable source of recurring revenue. Consider offering subscription services that provide ongoing value to customers.
   5. Prioritise Customer Experience: In a competitive digital landscape, exceptional customer experience is a competitive differentiator. Invest in personalised, seamless, and intuitive experiences across all touchpoints to delight and retain customers.

Having the right digital solution which is aligned to your goals and objectives within the business can increase both revenue and profitability. It will not only support processes today but will position your business for the future. A custom solution from Compass Data will grow and adapt with your business so that you will never outgrow it and can offer a return on investment measured in months rather than years.

Find out more about growing revenue