Why expanding your business revenue lines is essential

Expanding the revenue lines of a business is essential. The goal goes beyond ensuring an interesting net margin and higher profits; it also focuses on offering more security and stability to the company, decreasing the chances of suffering from the seasonality of the market. Companies without a plan usually focus on selling more and more, but in a competitive market, this is not enough. So what is needed to expand your revenue if selling and maintaining sales is not enough? This is a question that will be answered by business strategist Daiany Lourenco.
Unexperienced entrepreneurs may consider the relationship with the consumer completed after completing a service or a sale. This way of looking at the negotiation with their audience makes their CAC (customer acquisition cost) become increasingly high, because the public does not return or even forget their company, increasing the operational cost and damaging the sustainability of the business. On the other hand, investing in the retention of current customers is significantly more economical than acquiring new customers. In commerce, about 63% of revenue can come from loyal customers; already in the service sector, the number is even more expressive, reaching the margin of 701T3 to 10T3T customers.

To expand revenue lines, it is critical to understand the entire customer buying process.Signals that indicate readiness to purchase new products or services are key.

This can be achieved by observing the needs of the customer and which products related to the main service can be offered. For example, in addition to selling bicycles and working with bicycle repair, when the customer needs maintenance of the product he has purchased in his store, he will return. And if, by chance, you have in your store gloves, helmets and other utilities, the probability that the customer will spend more on your trade is very great.

“A recent case was the Arena Beach Club, a sports center of sand sports. I created a business planning in which, in addition to the sports area, 16 more services were included, such as bathing and grooming, hairdressing salon, barber, playground, laundry, bar and restaurant, party room, among others that offer convenience to the customer”, highlights Daiany.

But why do all this? In addition to varying the services available, allowing audiences with different needs to take advantage of space and generate a variety of income, it also eliminates the need for mobilization to acquire various services.In today's society, weekends are hardly just for leisure; there are many demands that, if not met, generate wear and tear in people's routine.
By offering services of necessity and leisure in the same place and at the same time, without the need to run from one address to another and without the obligation to purchase all or make a subscription plan, it provides freedom, flexibility and comfort to the customer.

“Therefore, it is essential to question whether the company already offers everything its customers need? Developing new solutions that meet customer needs is critical to continued success.Being in constant contact with customers to receive feedback is a best practice to identify areas for improvement and new business opportunities”, says Daiany.

Investing in revenue expansion within the customer base, alongside the continuous development of new products and services, is essential for the sustainability and consolidation of a business.However, it is crucial to maintain the view that customer retention is indispensable for stability and long-term growth.