An increase in revenue growth without compromising profitability is one of the highly prioritized goals of all companies. A well-focused and oriented plan, processes, and strategies should be implemented to achieve this goal.
Revenue growth and profitability indicate business growth. Thus, to come up with good results in revenue growth, there are certain areas that you need to focus on. This article explains proven effective strategies for driving revenue growth while maintaining profitability established by business leaders and owners.
What is revenue growth?
Revenue growth refers to the revenue increase in a specific period. It compares how much money a business generated compared to the last years or periods. Therefore, the company can accelerate revenue growth by increasing sales and adding more services that could generate income.
3 Effective Strategies to Accelerate Revenue Growth
Improve customer satisfaction
Customers are one of the key players in a business to run. Without them, companies will die. For this reason, customers play a crucial part in increasing profitable revenue growth. Thus, customers should be satisfied to be loyal customers continually and consumers that could also spread the word about the product or service to attract more customers. In other words, you aim for more customers and sales by improving customer satisfaction.
Improving customer satisfaction involves product and service innovation; this can also be one of the valuable strategies to increase revenue growth yet is significantly related to improving customer satisfaction.
As Patrick Cohen, CEO of Starlinkhow, says, “Product and service innovation plays a crucial role in accelerating revenue growth for a company because by continuously enhancing and innovating the products and services, customers will remain and might be loyal customers because of satisfaction. However, delivering the value of the products/services is essential, ensuring that new customers will come in instead of existing customers leaving. Satisfied customers are likelier to make repeat purchases contributing to sustainable revenue growth.”
Therefore, satisfying a customer should be one of the focuses to sustain and increase revenue growth without losing any profit.
Investing in Digital Marketing
Attracting a range of customers or consumers is crucial to increase sales. How? By investing in technology, specifically in digital marketing tools and processes. The majority of businesses today use technology to get ahead of the competition.
Regarding this, Medicare Supplement Plans CEO Loran Marmes says, “One of the implemented effective strategies to accelerate revenue growth in our company is investing in digital marketing and online presence to expand your online presence and reach and gain a wider target market. Utilize the infamous Search Engine Optimization (SEO), content marketing, social media marketing, and other digital platforms to engage more potential customers or consumers.”
With digital marketing, you increase your presence to potential customers through online platforms such as SEO and social media. In today’s evolving way to increase sales using technology, gone are the days of using just the traditional way to gain and increase more sales.
We are evaluating the pricing strategy
This strategy is proven, tested, and suggested by SonderCare CEO Kyle Sobko. According to him, about the competitive advantage that comes along with the increase in profitable revenue growth, evaluating the pricing strategy base on your current value in the market is one of the revenue growth strategies. “Explore and experiment with different pricing models such as value-base and cost-plus to increase revenue without compromising profitability,” he says.
Here are some critical steps on how to evaluate a pricing strategy
- Conduct market research. Knowing and understanding the competitors’ pricing strategy is essential to consider pricing. Explore and research the value they offer to the customers to know what opportunities or gaps you need to fill in when it comes to pricing.
- Evaluate costs. This is to determine if your pricing processes and strategies are aligned with your profit margins. It is essential to consider all the expenses associated with the product and services to ensure that your pricing will cover all the costs and allow a profit.
- Assess price sensitivity. This is about how customers react to the price change and how it affects the product demands. To assess price sensitivity, testing should be done to analyze and understand its effect on customer demand. Through this, you can improve your pricing to accelerate revenue and profitability.
With this strategy, it is essential to remember that this should be a repetitive process because pricing strategies will be based on market conditions, customers’ preferences, and your company’s objective.
Why is it essential to accelerate revenue growth?
Revenue ensures financial stability
Accelerating revenue growth is essential to developing a business because, first and foremost, revenue is the life and backbone of any business. According to Erin Zandoorian, Budpop’s CEO, a company may face financial difficulties without consistent revenue growth. “Accelerating revenue growth ensures financial stability that enables any business to cover all its expenses, allows it to invest in new business opportunities, and sustain the business operation throughout,” he says.
When a company is financially stable, it gains more opportunities for revenue growth and profit.
Revenue growth attracts investors and stakeholders
Attracting investors and stakeholders is one of the benefits of accelerated revenue growth to the business. Gaining investors benefits the company because your company will be perceived as valuable and indicates that the industry has excellent and reliable products and services.
Liam Wilson from Lottery n’ Go says, “It is essential to have a strong revenue growth track record of attracting investors and stakeholders that could fund or support the business projects that fundamentally show that there will be a return on investment. In addition, there are no doubt suppliers and business partners are more confident in engaging themselves with the business, knowing that the business exhibits revenue growth that indicates stability for future success.”
As a result of gaining investors and stakeholders, business profitability and success is guaranteed.
Gain more market share
Businesses that can achieve revenue growth often are at the top of the chain of competitive advantage. Competition is inevitable in business, so the company should always aim to be on top in the market.
According to Sweetlana Portnaya, managing editor of Top10.com, in a competitive market, accelerated revenue growth allows a business to gain more market share and rise above its competitors in the given industry. The faster the revenue growth is, the more business innovation, marketing, and customer acquisition are achieved, which can attract more customers and increase the revenue and profitability in return.
Indeed, being on the top of the food chain is essential in any setting, especially in a business industry setting. Hence, a benefit of increasing profitable revenue growth.
In conclusion, increasing profitable revenue requires extensive and careful implementation of the strategies ensuring that these also align with your business objectives. By these effective strategies tested and suggested by the business leaders and CEOs and their view of the benefits of profitable revenue growth, you will know how to accelerate profitable revenue growth that leads to long-term business success.