1) Increase the number of sales (i.e. if you sell 100 widgets a month, sell 200 a month), or
2) Increase the price per sale (i.e. if you sell your widgets at $1 per widget, sell them instead at $2 per widget).
There are important caveats attached to those two, and a good example. So please read the first post if you haven’t already.
Let’s look at how to increase the number of sales. Instead of outlining all options, we can simplify this into two broad concepts:
1) Sell to new customers, or
2) Sell more to existing customers.
Keeping these two ideas in mind is very important, especially when you are trying to expand. Let’s look at the same basic scenario as last time to see why:
In any given month, you sell 100 widgets at $2, for revenues of $200/month. Now, you want to sell more widgets. We will assume these are the same exact widgets, and you are not introducing a new product. How do you sell more?
Sell to New Customers
There are people out there that don’t know that your widgets exist and they don’t know that they need the widgets. So some sort of marketing campaign could work great.
Sell more to existing customers
These are people that know about your product, but aren’t convinced that they need to buy more than they already are buying. Increase the value that they are getting from the purchase. You can do this by providing an easier customer experience (maybe do a survey to learn what might be keeping people away or if there is something that can make the purchase of your product more convenient… something as small as where you sell can make a huge difference), a rewards program, or lowering the price (but see “Increase Your Bottom Line—Revenues part 1” for how this may backfire). Another great way to expand is by expanding your product line, which we will talk about in a future post.
Getting the Most Return on your Investment (ROI)
Before you choose one of those options and a method for implementing that goal, you need to learn what will give you the most ROI. Read “How to Solve a Problem” for a brief overview. In short, work from the ground up with research. For instance, don’t just implement a rewards program because someone else got a great return from a rewards program. It might not work for your business. Learn about why rewards programs work. A marketing campaign will also remind existing customers that you exist. So you may get a better ROI there. Look at what your competition does and how long they have been doing it. Chances are, if they have been doing something for a long time, it works.