When it comes to thinking up innovative revenue generation strategies, you don’t have to reinvent the wheel. In fact, getting back to basics, although it sounds cliché, can be one of the best marketing decisions you make.
That’s because although revenue generation is a relatively new focus in marketing, the methods by which you focus on what generates profits that grow your bottom line are pretty much unchanging. Ask yourself these nine crucial questions in order to focus on creating strategies that move the needle.
What is your best seller?
Your best seller is not necessarily your most profitable product, nor is it the product you sell the most of. It could be a product that’s consistently popular and sells well, but doesn’t particularly break any records. Make a note of what this product is and consider why it sells so well.
What is your fastest-moving product?
Whenever you have this product in stock, it flies off the shelves. It’s like customers can’t get enough of it. This may or may not be your best seller, but the important thing is that it sells FAST and you’re always having to restock it
What is your most profitable product?
This product may be your most fast-moving or your best seller or not, but either way, this is the product that consistently makes the most money for you. It may even be a high-end product that you don’t sell often, but when you do, you always make money on it.
Are conversion rates consistent?
From the moment visitors come into your sales funnel, are conversion rates pretty much consistent until the moment they make a purchase? If they’re dropping out somewhere along the way, it may be a sign that you have a leaky funnel and there’s some sort of disconnect happening.
What’s the product with the greatest lifetime value?
Which product has the greatest worth to the customer over the entire lifetime of its use? It may also be the most profitable, the fastest to sell out and/or the best seller but it doesn’t always have to be.
Are there opportunities to upsell and cross-sell your existing customers?
Do you have steps in place to retain and retarget existing customers through cross-sells and upsells? If not, you’ll definitely want to look into this as this can greatly increase the lifetime value as well as customer loyalty and the overall experience they have with your brand.
Can you increase the volume of sales by lowering the price?
We almost never advise our clients to compete solely on price, as this simply creates a race-to-the-bottom where no one really wins (except maybe the customer, who got their product way too cheap). But sometimes it makes sense to lower the price and make up for the lost profits in terms of sales volume.
Can you increase revenue by increasing the price?
Conversely, sometimes your product is long overdue for a price increase. And despite some possible initial pushback from customers, it may be time to take action. What could a slight increase in price do for your overall revenue numbers?
Can you lessen the time to close across the board?
Are there steps you can take to shorten the time it takes from the customer to enter the funnel until you have a conversion? There are plenty of ways to do this and the strategies vary for each business and type of business.
If you’re ready to put proven revenue generation marketing strategies to work for your team, contact the experts at Workdom. Our dedication to revenue and growth marketing is second to none, and our advertising professionals can help you take your next steps with confidence as you scale your business. Connect with us today to learn more!