For established companies, one of the most important things you can do to grow your business and make it more valuable in the long term is to increase your revenue growth rate. Here are eight ways you can do that.
The Smartest Way to Think About Growth
Regardless of what industry you’re in, you can think about revenue growth in a couple of ways. The first is revenue growth as it relates to your core product or service. This is revenue that’s derived from current customers, who may be getting more value out of their subscription or using your product more often than they were a year ago. The second way you can think about revenue growth is around upselling.
How Fast Should We Grow?
Running a business involves making decisions about whether or not to invest in initiatives that may increase revenue. Once you understand how those investments will impact your business, you’ll be better prepared for when opportunities come along—and you can weigh their potential value. To figure out how fast your company should grow, consider these three factors: 1) Cost of sales and marketing, 2) Pricing model and margins, 3) Goals for growth rate.
What Strategy Should We Use?
Launching a new product is exciting, but also scary—there’s so much that can go wrong. If you’re not sure what your strategy should be, ask your customers! Survey them and learn from their experiences. You can also look at other companies in your industry for inspiration—what strategies are they using? What seems to be working? How would you do it differently? These are all questions you should answer before launching a new product.
What Tactics Should We Use?
Look at your top competitors and consider which marketing tactics they use that you don’t. Can you do any of those things better than them? Can you do anything differently? The key is knowing your strengths, weaknesses, and what works for others in your industry.
The Most Important Metric for Measuring Revenue Growth
When it comes to a website’s revenue, there is one key metric you need to watch: e-commerce sales conversion rate. Conversion rates are your best indicator of how well your website is converting site visitors into customers. Even if you don’t sell products or services on your own website, it still important that users find and click through from ads and search results.
The Four Best Methods for Driving Revenue Growth
If you’re looking for proven ways to grow your business, consider using one of these strategies. It doesn’t matter if you’re a startup or an established company—any organization can leverage these four proven methods for driving revenue growth.
How Strong is Our Competitive Position?
Identify your competitors and be realistic about their strengths and weaknesses. Take a serious look at what they offer, where they have an advantage and where they have a disadvantage relative to you. Are there ways that you can work around their strengths or weaknesses? More importantly, are there other places that you can focus your attention instead of directly competing with them? If not, how will you differentiate yourself from them in a way that ensures that customers buy from you instead of them?
How Will We Know if it’s Working?
Making a major pivot can be frightening. You might feel like you’re changing course in mid-stream and starting over from scratch, but you have one key thing going for you: your original business idea is so strong that it still has legs. So, before making any big changes, set up a system for tracking what’s working and what isn’t—and then use it.