Expanding a business's revenue streams is essential. The goal goes beyond ensuring an interesting net margin and higher profits; it also focuses on providing more security and stability to the company, reducing the chances of suffering from market seasonality. Companies without a plan usually focus on selling more and more, but in a competitive market, that is not enough. So, what is necessary to grow your revenue if selling and maintaining sales are not enough? This is a question that will be answered by business strategist Daiany Lourenço.
Inexperienced entrepreneurs may consider the relationship with the consumer concluded after completing a service or a sale. This way of approaching negotiations with your audience causes your CAC (customer acquisition cost) to become increasingly higher, as the audience does not return or even forget about your company, increasing operational costs and harming the business's sustainability. On the other hand, investing in retaining current customers is significantly more cost-effective than acquiring new customers. In commerce, about 63% of revenue may come from loyal customers; in the service sector, the figure is even more significant, ranging from 70% to 90% coming from loyal customers.
To expand revenue streams, it is essential to understand the entire customer purchasing process. Signs indicating readiness to acquire new products or services are key.
This can be achieved by observing the customer's needs and which related products to the main service can be offered. For example, in addition to selling bicycles and working with bicycle repairs, when the customer needs maintenance for the product they purchased in your store, they will return. And if, by chance, you have gloves, helmets, and other utilities in your store, the likelihood of the customer spending more at your business is very high.
“A recent case study was Arena Beach Club, a sports center for beach sports. I created a business plan that, in addition to the sports area, included 16 other services, such as bathing and grooming, hair 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 available services, allowing audiences with different needs to enjoy the space and generate a variety of income, it also eliminates the need for mobilization to acquire various services. In today's society, weekends are rarely just for leisure; there are many demands that, if not met, cause stress and rush in people's routines.
By offering essential and leisure services 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 of them or take out a subscription plan, it provides freedom, flexibility and comfort to the customer.
“Therefore, it is essential to ask yourself whether your company already offers everything its customers need? Developing new solutions that meet customer needs is essential for continued success. Staying 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 essential for long-term stability and growth.
