As you might suspect, the answer to what revenue growth is can be stated simply. Revenue growth refers to the monetary increase your company makes from one set period to another. In basic terms, revenue growth is what your business has made month-to-month or year-to-year after all necessary deductions.
Why Is Revenue Growth Important?
With an understanding of what revenue growth is, you may ask yourself about its significance and how it affects the running of a successful business.
Revenue growth (or the lack of it) can show you your company’s status or overall condition. By consistently monitoring your finances and revenue numbers, you can easily detect any issues and resolve problems before things get out of hand. It’s never a good sign if a business isn’t making money, so managing your revenue growth can make all the difference.
What Is Revenue Growth Management?
Revenue growth management is the monitoring and implementation of specific granular data analytics used to predict customer behavior and expected actions. This helps businesses understand at what price points they need to be offering their services or products and when to offer deals and discounts to further bring them into the buyer’s journey.
Tips to Increase Revenue Growth
1) Develop a Strategy
When you need to improve your revenue growth, the best place to start is to develop a revenue growth strategy. Like many things, increasing your revenue growth year-over-year takes planning, thought, and research.
First, fully assess where you are and your future business goals. Once you’ve taken inventory of your numbers and considered where you’re lacking, create a revenue growth plan based on your goals and financial necessities.
By developing and implementing a revenue growth strategy, you can more easily pinpoint areas where you can turn a loss into profit.
2) Use Referral Programs
It’s been said that the best advertising is word-of-mouth, and your best clients often have friends or colleagues who are also looking for what you provide. People trust those with whom they are close and value their opinions. If your customer has a great experience with you, they might tell their friends and colleagues, who could then become future customers. Partner that with a good referral program, and your customers will help get the word out in no time.
3) Invest in Your Employees
If one of your business goals is to improve revenue growth and increase your overall success, you must invest in your employees.
Show them you trust them by laying off the micromanaging techniques. When employees feel trusted to do the task at hand, they’re more likely to go above and beyond. With employee buy-in, it’s easier to get customers to buy in as well, which can lead to increased profits.
4) Communicate with Customers
If your customers don’t know about new product launches or an upcoming special, how can you expect them to participate? Put simply, if your customers don’t know about you, they can’t spend money with you. Make sure you’re communicating effectively—not spamming their email inbox!
Send out email marketing newsletters with:
- product updates
- tips for using your product
- handy tricks/hacks for the product or related items
Posting promotions on social media can also help shine a light on your business and increase revenue growth.
5) Create a Loyal Following
Customer loyalty is achieved with exceptional around-the-clock customer support, strengthening your customer relations. Your customers will feel like they’ve been seen and heard when they need assistance the most.
Frequently Asked Questions
What is a good revenue growth rate?
Ideally, small businesses should look for a yearly growth rate between 15 and 25%. Although a higher percentage may seem great, many small businesses struggle to keep up with rapid development, which can quickly turn into a financial drain.
What is the difference between earnings and revenues?
Earnings refer to the inflow of money after deductions and expenses. Revenue refers to the entire income a business receives for goods and services it provides, as well as other income assets.
Is revenue the same as sales?
Though people often think sales and revenue are the same thing, they’re not. Sales directly refers to incoming cash flow from the sale of goods or services alone, while revenue includes other income assets.
ROI Call Center Solutions and Revenue Growth
With 24/7 support, ROI Call Center Solutions makes sure your customers’ calls will be answered and their problems solved. We’ll work with you to understand your goals, and we’ll communicate with your customers as a way to help increase your revenue growth.