Generating more revenue is a major concern for many business entities. To do this, the company will have to find ways to increase sales.
Closing a sale helps attain business growth and success. That is why many entrepreneurs wonder what tactics and strategies they can use. While there may be differences depending on the company’s situation and needs, there are also common techniques that can apply to any business.
So, where should you start? Knowing the four general ways to increase sales can help you get started.
1. Discuss ways to increase sales performance
Everyone involved in the creation and implementation of sales strategies should first be aware of what it means. While sales are often seen as synonymous with revenues, these two are different. Generally, sales refer to the number of units of products a company sells. On the other hand, revenue refers to the money generated through sales. It is also known as profit. Once the concepts are clear, the sales team can start planning strategies to address the business’s needs. The company should also discuss whether it would opt for outsourced sales or depend on an internal team.
Here are some other essential factors to consider:
- Getting more clients – Bringing more customers can lead to higher sales. Thus, allowing the company to earn more.
- Increasing the average transaction size – Having customers is important. But, getting these customers to purchase more is one of the most effective ways to increase sales. The more items a client purchases, the more money the company earns.
- Encouraging more transactions – Repeat customers are beneficial for businesses. Think of ways to increase the frequency of transactions of each customer. If the average customer purchases once a month, consider applying strategies that could make them patronize the business more frequently. For instance, if they end up coming back every week, the company will have more sales and revenue.
- Reviewing Prices – Check the pricing strategies of the company. It would also help if you research your competition. Are they charging less or more for similar products or services? What is the advantage of your offerings compared to theirs? Using this information, consider increasing or lowering your prices. Make sure they are aligned with the company’s goals. Each one has its advantages. So, it is essential to discuss the pros and cons of each one. For instance, lowering prices can increase sales as people are more likely to get attracted to products or services if they know they can save money. Meanwhile, higher prices can increase revenue. However, it does not necessarily increase sales.
2. Have clear goals
Every plan should have a goal. It would determine the strategies to employ, as well as the direction of the company. Define what success is for the company. What type of results does it want to see? For instance, a common goal for start-ups is to achieve profitability. Once the company survives that phase, the next goal is to increase sales and revenues to achieve growth. After outlining clear objectives and identifying what drives sales, the company can focus on planned activities to help achieve the said goals.
3. Plan for a powerful marketing campaign
To increase sales, it is crucial to have an effective strategy. One aspect to focus on is marketing. The concept can be a bit overwhelming for some. After all, it covers a wide variety of activities – from pre-launch to post-introduction of campaigns. Knowing the four major dimensions can help you understand marketing better so that you can start implementing ways to increase sales.
- Product Development – While a winning idea for a service or product is necessary, it is more important to develop it into something that will sell. That means the company or its sales team should conduct market research. What is appealing to your target audience? What makes the product or service beneficial for them? Why do consumers buy products or get services similar to what you have to offer? Collect all relevant information and use them to add or remove certain features to the product or service to make it more useful, affordable, and appealing.
- Setting the Prices – After figuring out what the target market wants and needs, the next step is to determine how it will make a profit in selling the product or offering the service. Consider manufacturing costs for products. Then, think about the overhead costs to sell the products or services and run the business. Use all pieces of information to find out the break-even point. That will determine how to set prices. It is also important to note potential sales volumes considering various price levels. This way, the company can figure out the price that will help it generate its desired revenue.
- Distribution Options – When selling products or services, a company needs to consider its resources and base its brand strategy decisions. There are various distribution options available. The company can sell its products through a retail store. It can also opt to allow direct sales through an online shop. Another option is to hire outsourced sales service providers.
- Promotion – A significant part of a marketing plan is promotion. What elements and tools should the company use? There are various options available, such as traditional advertising through print and broadcast, sponsorships, endorsements, events, social media campaigns, and in-store activities. Consider hosting contests and offering rebates or coupons. Depending on the marketing budget, the company can plan how much it will spend on advertising, public relations, and promotions.
4. Develop strong relationships with new and existing clients
Relationships are essential in business. One way of increasing sales is to attract new clients. However, it is also necessary to ensure that current customers will continue choosing your products or services. Having a comprehensive resource center will help give customers access to various products or services. Good customer service that can address concerns and complaints promptly will also be advantageous for the company. Making customers feel heard and appreciated can convince them to continue purchasing from your company, boosting sales and revenue.
Outsourcing Sales to Hire Experienced Sales Specialists
After knowing the four general ways to increase sales, the next step is for the company to find the best team. While some companies have an internal sales team, others opt to leave the job to experienced professionals.
Outsourced sales are a good consideration. With this, the company leaves the sales aspect to a third-party service provider. This vendor is composed of individuals who have the necessary skills and experience to address the needs of a company in terms of sales, from the development of campaigns to execution.
Among the common reasons why more companies are choosing sales outsourcing are the following:
- Lower company expenses while increasing sales and revenue
- Widening market coverage
- Quick response to market
- Improving customer satisfaction and client retention
Knowing the four general ways to increase sales is necessary for a company to generate more revenue. However, it is also vital to have the right people on the job. Companies that want to have professionals who have the right skills, experience, and tools should consider sales outsourcing.