The fastest way to grow revenue is through your existing customer base. This requires some introspection and a few strategic conversations, but it is the fastest and most cost-effective way to increase revenue. Here are the three things you need to do:
- Know your competitive advantage – Talk to customers, business partners, advisers and colleagues to determine what you do better than anyone else. Why would a customer choose you?
- Know your target market – Determine who can most benefit from the products and/or services you offer and what their needs are. Who would most benefit from what you offer?
- Communicate effectively – Once you have determined what you do better than anyone else and who will most benefit from that, you need to find an effective means to communicate that message to potential customers. What is the most effective way to communicate your strengths to those who would benefit from them the most?
A client of mine followed this strategy when expanding into new markets and they were very successful. They held numerous meetings to review the marketplace and identified the areas where they felt they were stronger or offered better value than the competition. They then created a profile of their target customer, including what that person's lifestyle might be like and what associations and organizations they might be a part of. From this they developed a strategy on how best to reach and communicate to that customer. The result was a huge increase in revenue as well as a reduction in the time spent generating that revenue. This increased productivity allowed them to meet with more potential customers and achieve a higher conversion rate for new customers, creating an additional surge of revenue.