How do you increase sales revenue? There are only 3 known ways to increase your business legally:
- Get more customers
- Increase price
- Get existing customers to buy more
Usually, most companies focus on #1 – Get More Customers. This is intuitively the first reaction that any business person will think of. If I have more customers, I will make more money. Simple, straight-forward logic.
#2 – Increase Price seems to be the Freddy Kreuger of most busineses. No one dares to even think about it most of the time. Other times, this is entertained as a nice fantasy before getting on with the real business.
#3 – Getting existing customers to buy more is probably one of the most desired outcome for many business owners. Buy two get one free and other bundling offers is the epitome of this strategy. It is a good strategy, even though it does compromise margins, you make up for the shortfall in the bottom line by increasing the top line numbers. It could work in some cases.
The harsh reality is this – it is really hard to get more customers. It is easy to lose customers. This is food for thought. Let me ask you a question:
“Why does everyone prefer to think about how to do business the hard way?”
We have been taught that it is hard to succeed at business. So, if getting more customers is hard, then it must be the best way to improve business. There is no way that you can improve sales if you do not have customers. That is a given. However, once you are over that initial hump, do you really need to increase your customer base?
Getting existing customers to buy more is a no brainer. That will certainly increase revenue. Because they already buy from you, they KNOW that you provide a good product/service and they are willing to pay for it. They proved it once. They will do it again.
There is one sure way that we can increase price and ensure that customers buy more from us – provide a true and abundant value.
Giving more value than the customer expects is not about giving up margins. It is about buying good will. If we can learn to meet, and then exceed customer expectations, we will increase sales.
The problem is, how?