How to Find New Ways to Increase Revenue
For any business owner, finding ways to boost revenue is always a top priority. One of the most important strategies for increasing business revenue is learning how to optimize your relationships and interactions with your existing customers. Learn more by reading this guide!
Table of Contents:
- Satisfying Your Existing Customers
- 4 Ways to Increase Revenue from Your Existing Customers
- Enhance the Customer Experience to Create Brand Loyalty
- Join an Affiliate Partner Program to Provide Additional Value to Customers
- Offer White-Labeled Products That Complement Your Existing Product Lines
- Use Marketing Automation to Nurture Existing Customers and Retarget Past Ones
- Start Increasing Revenue from Your Existing Customers Today
Satisfying Your Existing Customers
Some business owners may think that the only way to increase revenue is to acquire new customers. However, while expanding your customer base is important, focusing on your existing customers and retaining them can be every bit as important.
Part of the reason is the cost of customer acquisition. According to Hüify, acquiring a new customer can cost five times more than retaining an existing one. Generating repeat business with a satisfied customer is much faster, easier, and more cost-effective than convincing someone totally new to buy from you in the first place.
In fact, the success rate of selling to a customer you already have is 60-70% (as noted by ClickZ). However, this success rate drops to only 5-20% for a potential new customer. So, upselling to the customers who are already engaged with your brand has a very high return on investment compared to relying on drawing in new consumers.
What’s the bottom line?
Finding ways to better satisfy your existing customers so they want to buy from you again is incredibly valuable. Doing so can help you improve profit margins, drive business growth, and increase revenue. For example, improving customer retention by as little as 5% (1 in 20) can increase your profits anywhere from 25-95% (according to Outbound Engine)!
Read on to discover some simple ways you can make more money from the customers you already have—which can empower your business to meet revenue and growth goals more easily!
4 Ways to Increase Revenue from Your Existing Customers
1: Enhance Your Customer Experience to Create Long-Term Brand Loyalty
Following on from the topic of customer retention, the first way to increase revenue from existing customers is to drive brand loyalty through a positive customer experience.
Customer experience is the perception that a customer has of your brand—whether positive or negative. There are many aspects of your sales process, service, and products that can influence a customer’s experience with your brand, such as:
- Visiting your website;
- Interacting with your social media channels;
- Buying a product from you;
- Interacting with your products; and
- Calling sales or service/support reps.
Virtually any engagement with your brand or business can influence the experience a customer has.
Providing a good customer experience can turn a one-off buyer into a loyal, repeat customer and brand advocate. After all, if they have a pleasant experience that exceeds expectations—better than what your competitors provide—the next time that customer needs a product or service you offer, why wouldn’t they go with a familiar and reliable provider that they know will treat them right?
Sticking with a trusted company that provided a good overall customer experience helps consumers avoid the hassle of conducting more market research. It also avoids the risk of buying poor products from a scam artist looking to rip them off. Investing in your customer experience so they come to trust you will pay off in the long run when they develop long term loyalty to your brand.
Additionally, a really good customer experience can create a brand advocate who will sing your praises to others. Here are a couple of statistics to consider:
- Consumers are 92% more likely to trust their peers over advertising when it comes to purchasing decisions. (LinkedIn Pulse)
- 74% of consumers decide what to buy based on social media posts. (Social Media Week)
Creating brand advocates through a great customer experience that generates grateful buyers not only helps develop long-term customer loyalty—it can help you attract new customers and increase your brand’s reach!
Increasing Revenue with Customer Loyalty
As noted by Chief Outsiders, brands that work to improve their customer experience are able to increase revenue by 10-15% and lower costs by 15-20% on average. Furthermore, 86% of consumers that had an excellent customer experience with a brand say they’d be likely to make another purchase from that same company—which is 6x more likely than those who had a poor customer experience.
It’s clear that delivering the best possible customer experience can help you maximize revenue from existing customers, but how can you do it? Here a few key tips:
- Understand Your Audience. Having a deep understanding of your target customers—who they are, what they’re looking for, and the pain points that they face which your products/services address—makes it possible for you to deliver a customer experience that really resonates with them. When you can meet the needs of your customers and communicate with them according to their preferences, you’ll be rewarded with long-term loyalty and trust.
- Be Accessible to Your Customers. Providing the best possible customer service and support shows your customers that you truly care about them. So, be ready to maintain a high level of availability (either personally or via a dedicated customer support team/service) to answer questions, help troubleshoot common issues, and address other concerns that your customers have. Doing so helps demonstrate that you consider your customers a priority.
- Set Clear Expectations and Deliver on Them. Over-promising and under-delivering (i.e., making promises you can’t keep) is one of the fastest ways to make customers angry. It’s important to always set clear (and reasonable) expectations with your customers and to follow through on these promises as closely as possible. This helps show that you will follow through on your promises—generating good will from customers.
- Be Personal. One way to make customers feel like they’re important to you on a personal level is to use personalized content. Marketing automation can be used to send personalized emails, set up targeted social media ads for specific people, customize sales process messages, or even prepare personalized shipping boxes with design elements or additional contents based on the customer’s interests or purchase history. These are just a few of the ways to provide each customer with a personalized experience that makes them feel special and valued.
2: Join an Affiliate Partner Program to Provide Additional Value to Your Customers
Entering an affiliate partnership program can be a fast and easy way to drive extra revenue, amplify your brand’s reach/awareness, and provide additional value to your customers. What’s an affiliate program?
An affiliate program (a.k.a. an “associate” or a “referral” program) is an arrangement where a merchant pays an affiliated entity (a person or business) a commission to send them website visitors or refer new customers to their business.
For example, let’s say that your company specializes in selling products or materials in bulk to other businesses. These customers will themselves need fulfillment services to get the products they make (or resell) to their customers. Odds are that you won’t be able to provide these fulfillment services yourself. By connecting your customers with a fulfillment company as part of an affiliate partner program, you can provide them with additional value.
Some of the benefits of leveraging an affiliate partner include:
- Time and Money Savings. By leveraging an affiliate partner’s services, you can help your customers fulfill their needs without having to take on the costs, hassles, and time commitments required to provide services outside your company’s wheelhouse. This saves your customers time and money—while helping you maintain a positive relationship with them.
- Connect with Other Business Owners. Joining other business’ affiliate partnership programs lets you begin building a network that you can leverage to satisfy your customers’ needs. This, in turn, can help you maintain positive relationships with your customers by giving them useful resources through your affiliate network.
- Earning Extra Income. You can earn commissions for each customer that you pair with an appropriate affiliate company. This provides a valuable additional revenue stream that should be relatively easy to manage. Some affiliate partner programs even make it easy to earn passive income with lifetime commissions that provide you with a cut of every transaction the partner company makes with the customers you refer.
About The Fulfillment Lab’s Affiliate Partner Program
By joining The Fulfillment Lab’s affiliate partner program, you’ll be immediately welcomed into our tight-knit community and get access to numerous resources that will help you be a successful affiliate partner.
Our program aims to build strategic, long-term relationships that empower everyone involved to achieve more and gain additional value that leads to quick wins. With every customer that you refer under our affiliate program, you’ll receive lifetime passive income every time they ship their products with The Fulfillment Lab.
All you have to do is sign up on our affiliate program page and start sharing your trackable code with your network of contacts!
3: Offer White-Labeled Products That Complement Your Existing Product Line
White-label products are items produced by one company to be rebranded and resold by another company to their “end consumers.” These arrangements often benefit both parties—the company making the products gains access to the distribution network and customer base of their resellers. Meanwhile, resellers can expand their product lines quickly and easily without having to take on the cost and effort of establishing those product lines themselves.
Why would you want to offer your customers white-labeled products made by someone else? How can taking advantage of white-labeling help you increase the revenue you receive from your current customers?
Benefits of Using White-Label Products
By utilizing white-labeled products, you can:
- Simplify Your Product Management. With white-labeled products, you can make it easier to increase your product range. Instead of having to source multiple items from different sources to assemble your products, you can simply order a finished product from a white-label company.
- Increase Scalability. By using white-label products, you can expand your available products quickly and easily. This allows you to not only serve a wider variety of customers, but to recoup more value from existing customers by upselling them related products.
- Better Satisfy Your Customers. By offering additional white-labeled products that complement your product lines, you can help your customers get everything they need all at once. Instead of having to shop around for every accessory, they can treat your ecommerce store as a one-stop shop—which not only keeps them satisfied, but increases your profit margins on each sale as customers buy bundles of products.
The Fulfillment Lab is able to help you meet your unique needs with our white label manufacturing solutions. We give you the ability to customize product and packaging designs to the fullest while minimizing all of the associated risks—so you can focus on driving profits rather than micromanaging various details of the fulfillment process.
Private labeling a product is all about getting the hottest products that your customers are looking for and bringing your product to their door fast. As a premier white and private label service provider, The Fulfillment Lab is able to streamline production while guaranteeing quality.
Branded white label products can help you build a strong, recognizable brand and deliver a cohesive, uniform user experience that fosters long-term brand loyalty—which can help you drive additional revenue from existing customers!
4: Use Marketing Automation to Nurture Existing Customers and Retarget Past Ones
Marketing automation is a category of software-based tools that automates marketing activities and repetitive tasks. The main goal of using marketing automation is to boost the labor efficiency of your customer outreach while simultaneously offering a personalized and seamless customer experience that drives satisfaction and loyalty.
Many people assume that marketing automation is a tool that is only for use with new customers—creating sales workflows to engage with new leads. However, marketing automation can also be a powerful tool for nurturing your existing customer base and upselling them new goods and services!
By enabling you to create and distribute highly-personalized, useful, and valuable content, you can make your existing customers aware of new products and offers that will encourage them to purchase from you again. You can also use it to target customers who have been inactive for a while to remind them of your company and recapture them as active consumers.
How can you do this? Here are a few ideas for how you can use marketing automation to increase revenue from existing customers:
Send Segmented Emails
Many marketing automation platforms allow you to segment your audience and send them emails tailored to their specific demographics, preferences, pain points, and where they’re at in their buyer’s journey. You can also automatically send follow-up emails to say thank you or send a survey whenever a customer makes a purchase from you or interacts with a piece of content on your site.
These kinds of personalized emails are much more effective than generic ones—after all, when was the last time you opened an email with a broad, boring subject line that didn’t apply to you? Highly targeted emails can put the content and products your customers actually want right in front of them.
In fact, according to Campaign Monitor, marketers have noted a 760% increase in revenue from segmented campaigns. They also reported that “Segmented and targeted emails generate 58% of all revenue” for companies that use them effectively.
Place Targeted Ads on Social Media
Another benefit of marketing automation is the ability to place highly-targeted ads in front of specific consumers on social media. For example, you can look at a customer’s purchase history and automatically serve them ads for a product that complements what they bought from you a few weeks ago on the social platforms they use most.
This will provide additional value to your customers by giving them suggestions that will actually be relevant to their needs or help them solve a challenge they’re facing—as opposed to wasting your marketing dollars sending them ads for a product they’d never be interested in actually buying.
Marketing automation platforms can also be used to automatically add personalization to emails and promotional materials. This could include an individual’s name, their company name, location, or their position. By adding this personalized info into the content you’re sending them, it delivers a better, more personalized user experience that makes them feel important to your company rather than just another number.
There’s proof that it works—according to Campaign Monitor, 74% of marketers say that targeted personalization increases customer engagement and 53% say that ongoing, personalized communication with existing customers results in moderate to significant revenue impact. When it comes to email specifically, personalized emails deliver 6x higher transaction rates than those that are “non-targeted,” and emails with personalized subject lines are 26% more likely to be opened!
Start Increasing Your Revenue from Your Existing Customers Today!
In an intensely competitive business landscape, finding ways to better satisfy your customers and increase your revenue generated is crucial for long-term success. By leveraging the cost-effective strategies outlined above, you can develop a valuable competitive advantage and boost your overall profit margins with ease!
Are you looking for even more ways to increase revenue and meet your business goals? The Fulfillment Lab’s business partnership program can help! Our business partnership program is different from many of the other programs out there because we approach it as a true partnership.
You’ll be immediately welcomed into a tight-knit community and get the unique opportunity to be part of a network of like-minded individuals who can help one another reach new heights of success!
We’re always looking to provide additional value to our customers—and hope that you do the same for yours! Our successful partnerships guide those in the e-commerce space and beyond to find the perfect CRM, online store, payment processor, and more to best fit our partners’ needs. By building strategic, long-term relationships that empower everyone involved to achieve more and gain additional value that leads to quick wins, we can all meet our business growth goals sooner! Are you interested in being a part of a network of mutual success? Contact a team member at The Fulfillment Lab today!