Stop competing on price! Learn how to combat commoditization — exemplified by the Makino’s effect on the manufacturing industry.
The Four Strategies to Generate More Revenue for Your Company
When Kinesis starts working with a new client on their branding, website design, and marketing strategies, one of the areas that we tackle aggressively is to help business leaders to quickly see the best path to get results. And by results, I mean a Return on Investment from their marketing and sales dollars. When it comes to increasing revenues, there are four primary strategies that business leaders must examine and improve within their company. As part of our process, Kinesis focuses on each one of these areas to determine the best way to maximize it.
Strategy One: Generate more prospects.
This means that you develop specific tactics to increase the number of people who are aware of your company brand and interested in your services and products. While there are literally hundreds of approaches you can take to increase your visibility with your target market, don't take a shotgun approach. Instead, choose around least 5 to 10 marketing systems that you commit to implementing on an ongoing basis. These will work for your company to attract more prospects using multiple marketing channels.
When Kinesis starts working with clients, we find that many companies have only 2 or 3 ongoing marketing tactics - and for most professional service firms these are referrals and networking. And these are certainly excellent marketing tools. However, by limiting your marketing in this way, you put your company in jeopardy. If these pipelines dry up for a period of time, your future revenue drops. The more visible you become through multiple marketing pipelines that you implement on an ongoing basis, the more business you will generate.
Strategy Two: Increase your conversion rate so that more prospects buy from you.
We talked about visibility in Step 1. But, this isn't enough - once you get your prospect talking with you, then you need a process to convert them to becoming a customer. This means your company must hone its sales process. For instance, many professional service businesses put up a pretty new website and then focus on driving lots of traffic to their website. Traffic by itself does you no good if your visitors aren't buying your products and services. A more profitable strategy would be to focus first on having a website design and copywriting that converts your visitors to customers. Similarly, if your busines has an in-person or cold-calling sales-oriented businesses model, you must develop a consistent, constantly-improving sales process, so that every sales person follows proven best practices that converts prospects into customers.
Strategy Three: Increase the number (or frequency) of sales per customer over time.
It's always more expensive to attract new customers. Therefore, developing ongoing relationships with customers and generating a high lifetime value – is essential to your success and your sustained growth. Develop a company brand with an amazing value proposition that not only keeps customers coming back but has them raving about your business to others. As a business leader, it's your responsibility to develop processed and systems to build ongoing relationships with your customers that provide high value. By doing this, you'll be the first business a customer thinks to call when they have a need.
Strategy Four: Increase the average price per sale.
Obviously, the easiest way to increase the average price per sale is to increase your rates/prices. And you can often do this by positioning your brand as the premium choice for your target audience. However, there are other ways to increase your average sale. Most companies have an opportunity to earn more revenue by being creative about how the business sells its products and services. You can bundle complimentary products/services, cross-sell, up-sell, and offer larger units of sale. For instance, at Kinesis we offer marketing strategy, web design, graphic design, and copywriting and we often create packages that not only bring us more revenue per but offer a better deal for our clients and provide them a suite of services that will give them the best possible result. It's a win-win for everyone. You can do this with your company, as well.
If you work on mastering any one of these strategies, your company revenue will grow. Combining all these four strategies will grow your business revenue exponentially. Of course, this means that you have to develop systems to implement each tactic as well as operational capacity to handle growth (not the worst problem to have!). Kinesis works with business leaders to develop the smartest strategies and tactics, set ambitious marketing and sales goals, and design an action plan to optimize each strategy. By implementing our process, our clients are able to take their company to the next level of growth and profitability.