If there’s one thing that rules a business above all else, it’s probably revenue. A company can’t be successful in the long run if it’s not making money. Sometimes revenue issues are obvious and can be easily remedied with a simple fix. Other times, the solution is a lot more convoluted. However, doing nothing isn’t an option if you care about the financial viability of your organization. Here are five tips for making smarter revenue-driving business decisions.
Don’t Be Afraid of Data
Data is your friend. It doesn’t matter if you’re the world’s largest corporation or a small e-commerce seller, you need data. Every single industry can benefit from implementing some form of data analysis. Luckily for those who see the value of empirical data, it’s becoming increasingly available. The first step is to figure out what sorts of data you need for your company. A manufacturing company might want output information about an assembly process. On the other hand, a delivery service might want to track fuel efficiency. Find a data collection software that accommodates to your needs.
Analyze Myriad KPIs
If you don’t know about KPIs (key performance indicators), you need to learn. These are some of the most proficient methods of understanding the effectiveness of your actions. Customer lifetime value (CLV) is one of the top KPIs that companies will study. This is simply how much a customer spends with you over the course of their life. This will of course be more useful for some industries than others. However, it’s an incredibly handy KPI to work in conjunction with customer acquisition cost. Getting new customers is one of the most expensive parts about running a successful business. Finding ways to balance acquisition cost with lifetime value is a great starting point for boosting revenue.
Integrate Data across Platforms
So, you’ve started collecting lots of data and analyzing KPIs. That’s great. You’re doing exactly what you need to to be competitive. That doesn’t mean that’s where you should hold the line. Cross-source data analysis is extremely helpful for gaining even deeper insights. Essentially, this requires pulling data from various platforms and integrating it into one cohesive model. Data silos are somewhat antiquated because they stifle collaborative analysis. Get software that allows you to pull data from multiple inputs. It will likely help you find novel ways to boost revenue.
Analyze the Benefit of Discounts
Discounted merchandise is often associated with a struggling company. Businesses often will drastically cut prices if they need to quickly liquidate their inventory. However, there’s also evidence to show that discounts can lead to an increase in revenue. This is because so many more people will be inclined to purchase goods when they are offered at a cut rate. In fact, one case study found a 75 percent discount could actually boost revenue by 548 percent. This won’t be the result for everyone. But it shows the potential of a well-timed sale.
Understand How to Make Online Conversions
If you want to increase your revenue, you need to understand how to make conversions online. This is much less intuitive than it is for physical retail, as there is little personal interaction. One thing to do is simplify the checkout process. The fewer steps, the better. Cart abandonment is one of the biggest reasons for lost online conversions. Email marketing is another highly effective way to boost revenue. You should also consider your overall website design. Strong user interface and experience will lead more people to happy checkouts.
Revenue is essential to running a business. If you’re lacking in this department, it’s crucial you find ways to remedy any softness. Consider these tips for boosting your organization’s revenue stream.