10 Effective Strategies to Increase Revenues for Your Startup

 Nidhi Dave
  Sep 05, 2017

Launching a startup is one thing; accelerating growth, earning revenues and expanding is a different challenge altogether. The focus of any entrepreneur should be rapid growth to generate revenues. Startups often struggle with lead generation, sales and revenues, with the problem of sustainability due to failure in attaining cash flow. By having a strong business model and adopting effective strategies, you can successfully give your business a much-needed jolt. Here are some of the strategies through which you can earn more revenues. However, your decision to implement them should be based on factors like the understanding of buyers’ motives, level of competition, market dynamics, your company’s capabilities, etc.

1. Upselling

One of the most effective strategies to increase the amount of money that a buyer spends is to apply the tactic of upselling effectively. The best example can be a fast food restaurant offering garlic bread or a cold drink after ordering a pizza.

Amazon introduced upselling way back in 2006 using the phrase “customers who bought this item also bought”), increasing its sales by 35% as a result of its upselling efforts.

2. Repeat Business

Many businesses put all their efforts into acquiring new customers while ignoring the importance of retaining existing ones.

Business relationships are all about trust, and your existing customers have trust on you for your products and services.

You can get repeat business by encouraging your current customers to join your email list. Through email marketing, you can regularly communicate with them, keep them updated on your latest offerings, and convince them to do business with you again.

3. Pricing Strategies

As a startup, you can review your pricing strategies to enhance revenues. Research about your competitors and how they are charging and increase or decrease your prices based on your business objectives. By lowering your prices, you can gain a competitive advantage, and your sales can shoot up, helping you increase your revenues. Enhanced price can create a perceived value in the minds of consumers and raise your profit margin, without increasing your sales.

4. Niche Marketing

As a startup, you will need to make your audience aware that you have launched your business. If you try to market your startup to everyone, you will waste both your time and resources. It is better to identify a niche target market and go aggressively after the market share. You can choose the market based on its size, willingness to spend money, competition, value proposition, etc., and put on SEO (search engine optimization) and SMM (social media marketing) efforts to earn more revenues.

You can even offer your customers discounts and coupons to increase the chances of sales. Coupons are especially effective for new customers who are not sure about purchasing from you.

5. Viral Marketing and Referral Programs

You can even use viral marketing or create referral programs to reward current customers for successfully bringing new customers into your startup.

Viral marketing is a cheaper way to promote your business, where a few customers help bringing in a large number of customers. For example, a user recommending using Facebook to other users and others recommending the same to more users is an example of viral marketing. In this type of marketing, it is crucial to achieving a strong “viral coefficient,” i.e., the number of new users each existing user can bring over to your business.

Referral programs have been successful too and have been adopted by companies like Airbnb, Dropbox, Uber, PayPal, etc. Groupon, for example, uses the referral programs strategy to expand its user-base by asking its current users to invite their friends to take the benefit of the attractive deals on food, recreational activities, beauty experiences. etc.

6. Conversion Rates

Monitoring your conversion rates is important. You need to keep an eye on the number of visitors on your website and blogs, walk-ins, inquiries, etc. and see how many of them get converted into real customers. You can either increase the number of visitors through marketing efforts to boost conversion rates or work on increasing your conversion rates, which can have a significant impact on your revenues. It’s crucial to measure these numbers, to understand the difference any small change can make on your bottom line.

7. Market Expansion

As a startup, you can even add complementary services or products to your current portfolio to get new clients, maintain the existing ones and generate revenues.

Many startups limit their marketing and sales efforts to the nearby areas only. Extending the geographic market area can help cashing in some more revenues.

The other way is to contact other businesses that sell complementary products or services to sell your product too. For instance, computer hardware companies often sell software, which helps in enhancing the sale of their hardware. Many businesses are looking for such partners with complementary products as they don’t add much to their marketing expenses.

8. Distribution Channels

Changing where you sell your product or service can significantly increase your sales and revenues without making any changes to your marketing or pricing. You should perform a careful study of the effects of using various distribution channels including online selling, wholesalers, retailers, distributors, other sales representatives, etc. to see how each of them can affect your sales volume, profit margins, and revenues.

9. Online Presence

To generate more revenues, you can bring your products to the web and sell them. E-commerce is growing at a rate of 23% every year.

For any startup, a website gives reflection to the company. If you don’t have a website or not thinking of reaping the benefits of the online platform, you are leaving massive amounts of revenue on the table. Hold on! It is still not late. If you are thinking of quick entry into the market with an intuitive and dynamic website instead of getting it developed from the scratch, website clone can be the preferred choice for your startup.

10. Marketing Collaterals

Marketing collaterals hold great importance for a startup because they can be very helpful to promote the business in the initial stage.

Websites, brochures, presentations, product data sheets, etc. have the potential to make your sales efforts more effective, thus boosting revenues. It is crucial to keep these marketing collaterals up-to-date, leading the customers to buy from you. They should have vibrant colors with bright images to draw the attention of the audience and generate excitement in the content. Dull and boring materials can fail to make any impact on your potential customers.

You should review your marketing collaterals regularly to see whether they convey the message you are trying to put across your audience, ensuring they include all your products with updated features and benefits, conveying a sense of urgency with easy guidance for purchase.

Conclusion

Successful startups continuously reinvent themselves by considering the opinions of their customers and adapting their products, sales strategies, and processes to meet the demands of the constantly changing market.

Each of the strategies listed above will help you generate revenues, but the optimum choices for your startup will be dependent upon the understanding of the customers you serve. They can be put into action only if your startup type and industry allows them to. The success of these strategies also lies in their application, and you can’t assume someone else’s situation to be identical to yours. Focus on how these strategies apply to your startup and creatively implement them to enhance revenues!

10 Effective Strategies to Increase Revenues for Your Startup

Nidhi Dave

Nidhi is a content and branding strategist who ensures that a consistent brand message is delivered to the audience. She is detail-oriented and multi-faceted, embodying her marketing skills with her vision to identify customer’s needs, precede the best products & services and escalate them to sales.

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