Growing a business is hard. But do you know what’s harder? Growing a business with out any money in the bank or revenue coming in.
A great product, fly design, and tons of subscribers are all amazing things but they basically mean nothing if you don’t have a game plan for revenue.
So today, I'm sharing the WorkSmart Framework I use to grow revenue in my businesses. These four pillars can be used over and over whenever you are looking for new ways to increase revenue and grow more quickly.
Pillar One: Increase your average revenue per customer.
This pillar is all about upselling and offering a new product to your existing base in order to increase the amount of money that you collect per transaction.
For example: If you have an e-commerce business that sells shoes, you can look at introducing shoe cleaner or socks that go with the shoes you're already selling.
Pillar Two: Decrease your sale-cycle time and increase frequency.
Your goal here is to increase how often your current customers make purchases with you. This could be by educating them on how to use your product so they increase use. ever see directions on deep conditioner that say “use 2-3 times a week” when you know dang well you shouldn’t be using that conditioner more than once every few weeks?
If you're in a service-based industry: You can think about a lot of other ways to speed up your sales cycle. If you’re a restaurant and the average customer comes in once a quarter, how do you convince them to patronize your business once a week? Maybe you offer a loyalty program or a free dessert on their birthday to increase frequency.
Pillar Three: Get new customers with the same products you have.
This is a no brainer and where most people automatically go when thinking about increasing their revenue. For this pillar you take your current product and sell it to more people.
This could be by introducing a new channel of sales (ex. You only sold online but now you sell in local shops) or by increasing the reach of your marketing to find new people.
Pillar Four: Increase your close rate.
Here you want to focus on increasing the likelihood that someone will actually transact with you after they have entered your sales funnel. To use this revenue pillar, you’ll need to look closely at your data and map out the steps in your sales funnel and track your conversion.
You might be really good at getting people to try your product or learn more about your service, but if they don’t purchase then you’re missing out on a huge chunk of money.
Here are some quick ideas on how to increase your close rate:
Boosting your revenue is critical to growing your business. I hope this is a helpful framework to use as you begin planning your business strategy for 2020.