We discuss what exactly revenue growth is and give you some strategies to help accelerate your business’ revenue growth.
Whether you run a big or small business, finding ways to accelerate revenue growth is always at the forefront of a business owner’s mind. After all, the faster you can generate revenue, the bigger your brand will be able to grow. We discuss what exactly revenue growth is and give you some strategies to help accelerate your business’ revenue growth.
Revenue growth can be described as the amount of money a business makes over a predetermined time in comparison to a previous identical amount of time. In simpler terms, it can be described as the amount of money a business makes this month compared to last month. Revenue growth can be calculated by a percentage increase from a certain starting point. You subtract the previous period’s revenue from the current period’s revenue then, divide this result by the previous period’s revenue. This can be calculated at different time periods e.g., annually, quarterly, or monthly, depending on the business’ desires.
There are many ways you can help increase the revenue growth in your business. One of these ways is to review and increase your rates. Many businesses may worry about scaring away customers if they increase their rates too much, however this is usually not the case. Due to research by social psychologists, increasing your rates will actually help accelerate your revenue growth as customers will think your product or service is of higher quality as it is a higher price.
A second way to help accelerate your revenue growth is to develop more products that target different audience segments. For example, this may include the introduction of the same type of product but for use by different ages.
Another way to help accelerate your revenue growth is to do more for your current customers. Research suggests that increasing customer retention by 5% can increase your profits by between 25% and 95%. Ensure you make the effort to retain long-term and loyal customers as this can be more effective than focusing on acquiring new customers.
Becoming a recognised expert in your field will also help to accelerate revenue growth. Some of the ways to show you are an expert in your industry may be through a blog, podcast or news articles that can be published and shared online. This will not only give your current customers confidence in your business but will also attract new customers.