Knowing how to increase a store’s revenue is essential knowledge for this turbulent period of the Brazilian economy, in which many companies needed to reinvent themselves and adopt new work methodologies, such as home office .
By adding healthy financial and production management practices, you achieve many benefits linked to invoicing, such as:
- More security as to what is produced;
- Market presence;
- Consolidated company;
- Increased profit.
Now, in case you’re wondering what billing is, here’s an explanation!
What is billing?
In short, billing is the sum of all amounts that enter the company, whether they are already allocated to a debt or not. In other words, it is the amount of cash accumulated in a given period.
To calculate it, just select the desired time interval (for example: from the 1st to the 31st of May) and then add the money coming from the sales made. That’s it , the result will be your billing for the pre-selected period.
Difference between billing and profit
Invoicing requires adding up all the capital coming into the company, but the profit is different. It is how much money is left after excluding the costs of producing and selling your product or service.
How to increase a store’s revenue?
You already understand that the increase in revenue brings benefits to the company, but you must be aware that if it is not done properly, it will have an effect contrary to the desired one.
Imagine the following situation: a manager lowered the price of all products to half price, which caused sales to grow significantly. As a result, sales also increased, as in this first moment there was more input and output of products.
In the hypothetical situation mentioned above, the conclusion is not good, because the expenses for production outweigh the profit. Result: the manager left with a loss, even though he managed to have a high turnover (a lot of financial movement in the portfolio).
The example cited is an extreme case, but easy to visualize. Now, see the tips on how to increase the revenue of a store in a healthy way and that generates good results, profit and increase in the average ticket .
Increase the number of customers and sales
Winning more customers is a practice that must be done at all times to always keep the portfolio active.
This action is not only aimed at quantity, but also at quality, as it is better to have loyal consumers than to have temporary customers.
By making customers always come back to purchase products or services, revenue increases as their engagement with the brand grows.
Some practices to achieve this feat are:
- Launch campaigns that speak to your audience;
- Know very well the behavior and preferences of your consumers;
- Add value to the products and services offered.
When you worry about repeat purchases, it’s easier to see who are active and inactive consumers . Thus, it is possible to work strategically on top of each one of them.
Make shopping and customer experience easier
It’s a fact that today’s consumers want more than just a new purchase. They yearn for an experience that meets all their needs, an experience as simple as possible. So help them get it!
- Make the entire business process easier by being more direct at each step;
- Offer multiple forms of payment , from a card machine that accepts different brands, to a store’s own card;
- When the sale is at a distance , look for ways to make shipping cheaper for the customer and to ship the product as quickly as possible;
- Always have extra products in stock , so you won’t miss a sale due to lack of reserves;
- Build customer service that works and focus on ensuring customer inquiries and issues are answered.
When these practices are adopted, the company tends to be well talked about in the market and be seen as a good store by consumers.
So, remember that, as Victor Vieira , founder of the Institute of Specialization in Sales , says , “the customer is not always right, but he will always be your reason” . This means that you need to serve him in the best possible way, because that’s what you’re there for.
Adjust the average value of purchases
A more direct and immediate strategy is to increase the value of purchases , so the average ticket will also grow.
However, be careful not to exceed the supply and demand limit. In a commercial process, the company offers something for some amount that the customer is willing to pay, because if the situation is different, there will be no purchase, only the company’s bankruptcy.
Strategically increase the average sales price to a limit that there is still consumer demand for what you sell. If you decide to change your strategy, start by adding more value to the product.
Product mix sale
The product mix is the amount of merchandise in the store. The variety of articles draws the attention of the consumer, who sees more options to choose from. However, it is not just that.
By offering a mix of products, you are exercising a sales technique that generates immediate results in terms of how much the store makes. If you make something available to a consumer, why not present something else that complements their interest?
This practice is only possible if there is a well consolidated product mix in the store.
Discounts are almost a routine in the lives of many sellers , and some even offer it without the customer even asking. This practice may even seem good at first, because it can increase the number of sales and, consequently, revenue.
But, for sure, the profit will suffer a big drop with this attitude. So don’t discount without strategy. Offer more than a price reduction, to know how to increase the revenue of a store in a healthy way it is necessary to be able to make sales without loss of financial value.
Some tips for not giving discounts are:
- Add value to the product;
- Offer more than a purchase, provide gifts and opportunities that make the consumer grateful;
- Always focus on the product’s benefits and show that the value matches its height.
- Train your team to bypass price objections.
Do good marketing
The marketing is one of the first practices essential for a company to be in the new market scenario , one in which consumers are increasingly present on the internet and look for ease and convenience.
But, we are not just talking about that direct advertising format, the famous “word of mouth” or the advertisements on television and billboards. Contemporary marketing is called digital and aims to add value and content to the brand, influencing someone’s decision to buy through building trust and identification.
To know how to increase a store’s revenue, it is necessary to understand that marketing is fundamental, because through it it is possible to attract more customers and gain their loyalty, which is largely related to our first tip.
Create rich and relevant content and be present on social media. With this hook, let’s go to one more piece of advice.
Be active on social media
Social selling . This is a term widely used in the commercial sector these days. Loosely translated, it means “social selling”, which is nothing more than leveraging networks to connect with the public, create networking and expand the reach of sales.
This practice is closely linked to digital marketing, but it goes beyond advertising the company, it means communicating more directly with consumers through comments on publications, more interactive posts and even network markings. Profiles need to establish a trusting relationship with users.
The personal marketing of salespeople
Now, a more direct marketing that can be used in face-to-face sales, but also on the internet, is salespeople.
In order to establish a deep connection with each other, personal marketing uses empathy, credibility and security for this.
Before a salesperson even offers a product, he needs to know how to be present and get the customer’s attention – he needs to be able to sell himself! For this, it is necessary to study the subject in order to develop these skills.
Two tips that help at this point are: look for training and remember self-worth and self-promotion.
Increase sales conversion
The sales funnel has this name because at each step of the sales process , it is common for some customers to be lost.
The beginning is prospecting, when there is contact with a large audience and, at each new stage, the funnel will filter out potential consumers, even those who will actually make the purchase and reach the closing date.
The sales conversion is when these people move from one stage of the funnel to the next. And, if you improve each one of them by 20%, the result is certainly a fivefold increase in sales, which consequently improves sales.
Are you curious to know how to put this into practice? Click on the image below, we have a free e-Book for you to sell more and better!
Improve your team’s performance
Training the sales team is the main way to know how to increase a store’s revenue. The other practices work, but without having a highly specialized and high-performance team , you may not reach 100% of your business potential.
Sellers are the ones who actually make contact with the customer, so if at that time the service is not well performed or some technique is poorly applied, the results become unsatisfactory.
Therefore, enable your sales team to be champion and thus increase the store’s revenue.
An example that this is possible is the case of Jasper , Bio Extratus distributor, which saw its turnover grow by 151% even in the midst of the pandemic. In the market since 2006, the company found in the IEV the opportunity to achieve improvements in the entire sales team after going through a strategic meeting for commercial teams .
Lorrayne, commercial manager at Jasper, sought training for salespeople, as he realized that there was no standard in their service. Another point is that most of them did not have any training for the profession, so they found it difficult to relate to the client.
The manager’s surprise was the difference in reality after the contact with the IEV. She reports: “I say that the IEV was more important to me as a manager than to the salesperson, because all the meetings and mentoring I had were a real reality check”.