Are there really only four ways to increase your revenue? Being able to succinctly identify what causes your revenue to increase can be helpful in deciding how and where to focus your efforts in building your business. Here are the four ways to increase your revenue…
1) Increase the Number of Customers
Wether you refer to them as Clients, Patients, or Customers, getting more of them is a “no-brainer”. Marketing to attract New Customers who have no connection to your business isn’t the only way to do this. Often, the most cost-effective way to increase your number of customers is by getting referrals from the ones you already have a relationship with. When compared to New Customers from other sources, Referrals are usually more ready-to-buy and easier to convert to paying Customers. People will trust what friends, family, and even casual acquaintances recommend, more then other forms of marketing, almost every time. Implementing a consistent, automatic referral system in your practice can pay off big time!
2) Increase the Frequency of Transactions per Customer
The second way to increase your revenue is to encourage your customers to purchase from you more often. On the average, how often do your customers do business with you? If all of your customers purchase twice in the same amount of time they normally purchase once, your revenue doubles without any new customers. Measure the frequency your customers do business with you, and work towards increasing that frequency by keeping in touch with them and educating them on additional products and services you offer. You need to give them a reason to buy more from you.
3) Increase the Average Transaction Size
Increasing the average amount each customer spends with you is the third way to increase your revenue. Sorry, but simply asking them for more money isn’t going to work. Wouldn’t that be nice! It’s important to identify what your customers are looking for. What problem do they need you to solve? Often, they aren’t aware of what solutions or products you have that could solve their problem. So just like increasing the frequency of your customers transactions, you need to first educate your customers about add-on or additional services and how it could help them.
4) Increase your Prices
The fourth way to increase your revenue is by increasing your selling price. This one requires careful consideration due to the cost/benefit analysis each of your customers go through before buying. An increase in price may cause some customers to find an alternative or to go without, reducing your number of customers or the frequency of their transactions. If your pricing is appropriate, an alternative to raising prices can be increasing your capacity to serve your customers by offering more hours or more staff to increase your volume. Which touches back on ways 2 and 3 to increase your revenue.
Consequently, looking at your marketing and sales efforts, all of them should fit into one of these four categories. So yes, there are only FOUR ways to increase your revenue. Each of these ways to increase your revenue requires you to measure and track your customer’s buying habits. It doesn’t take a lot of effort to do that, and will benefit you greatly by allowing you to clearly measure the results. Feel free to give us a call with any questions you have about marketing and increasing your revenue, we’re here to help!