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Many small businesses get caught up in the day-to-day management of operational and production issues and lose track of their sales activities. At least one person should have sales growth as their primary job description. Here is a range of revenue growth strategies to increase sales in your business.

  • Identify customer segments that you are not selling much to and promote all relevant products and services to them.
  • Consider contract packaging or manufacturing of other company’s products and use that contract to obtain bank leasing on more automated equipment, thus making your products at a lower cost.
  • Seek referrals from existing satisfied customers using proven referral methods.
  • Provide incentives to existing customers to buy more, buy more often, pre-pay annual purchases or buy bundles of products/services.
  • Build existing customer loyalty by means of loyalty clubs/frequent shopper and database marketing contacts (e.g. phone sales, personalised direct mail, newsletters, e-mail, web sales contacts, e-zines etc).
  • Ask existing satisfied customers for a testimonial and use this in promotional materials and sales support.
  • Conduct focus groups or customer surveys with major customer segments to find out what they like about your business and what could be improved.
  • Gather demographic information (e.g. ABS data – go to www.abs.gov.au) or other information on how to access or identify the major customer segments in order to promote more heavily to them.
  • Analyse all sorts of services provided to existing customers and make sure you are charging for them where possible (e.g. freight/delivery, phone support, maintenance, information, technical support, upgrades etc).
  • For retailers, use effective internal/external signage, merchandising and floor layout to boost add-on and introductory sales – bundling like products and services into “packages”. Put related products adjacent to each other.
  • Gather information on changing market demands to identify new groups who might need your products/services.
  • Brainstorm all the different and unusual customer groups who could be targeted.
  • Brainstorm all the different /unusual uses for your products and services.
  • Gather demographic data (industry associations, Google searches, government economic development departments etc) on your market and target segments you are not dealing with now.
  • Analyse your geographic areas of current sales to identify different regions, states or countries where you could sell.
  • Investigate who your competitors are selling to and make offers directly to these customers to convert them to you by trialling your products/services and then locking in ongoing sales.
  • Find new distribution channel options (e.g. agents, chains, e-commerce stores on-line, affiliate sales, distributors, wholesalers; allied/related products and services outlets, commission sales, telemarketing etc).
  • Find non-competitors, who sell non-competitive products and services to similar customers to yours and do joint promotions (e.g. joint mailings/campaigns, swapping databases, bundled products/services, incentives using your product or services etc).
  • Simplify existing products and services to create simpler, cheaper options.
  • Provide justifications for all the elements of your product and for service to build up the perception of the total value, then price accordingly.
  • Introduce “home brand” or low-price items to increase volume sales.
  • Develop a computerised standard costing calculator for all product lines that updates all prices when input stock prices go up. Put prices up asap.
  • Re-price old stock to new prices.
  • Re-price promotional stock once the promotion is over.
  • Eliminate excessive staff discounts.
  • Minimise heavily discounted “end of clearance sales” instead seeking other means of sales (e.g. to a discounter, to staff etc).
  • Sell accessories and add-on products and services to complement what you sell now.
  • Review competitors to see what extra products and services they carry.
  • Search the web for businesses wanting affiliates to distribute their products/services.
  • Conduct focus groups of target customers to uncover needs for products and services not currently ‘carried’.
  • Talk to suppliers/distributors and industry colleagues about extra products/services.
  • Use creative thinking and innovation to develop new products and services that solve customer problems, meet new needs or add extra functions.
  • Run staff competitions to identify new products and services.
  • Check competitor prices and match them wherever they are higher.
  • Create a price mix (like the supermarket) with some low-cost items (especially the basics) to build customer numbers and traffic but with consistently high prices for the rest of the product/service range.
  • Price consistently so that similar products and services are all around the same price.
  • Increase prices every June 30 and December 31, informing customers (if needed) that this is a regular, inflationary measure.
  • Offer low-cost add-on services (or product additions) that add value and increase the price.
  • Consider pricing above competitors to “position” yourself at the quality end of the industry.
  • Promote the higher priced, higher margin products and services to increase sales of this category.
  • Bundle up the prices of services (especially professional services) so that hourly rates are avoided and the focus is on what value you provide.

 

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