Something all small business owners hope to accomplish is increasing their revenue. Luckily, they do not have to look very far to do so. One of the simplest ways small business owners can boost their earnings is by working with their current client base.
Small business owners’ current customers are some of their most vital sources of income. They can rely on them for their existing revenue stream, but they can also look to them to bring in even more in the future.
Small business owners need to understand how much their existing client base is worth and how they can strategize to work best with these clients for the greater good of the business.
Current clients are essential to small business owners because when they have a group of reliable, faithful clients they can count on to continue doing business with them, they can focus their attention on other tasks.
Furthermore, a solid existing client base provides excellent word-of-mouth advertising and public relations for the small businesses they frequent. Loyal, happy customers are more likely to recommend their friends to do business with these small businesses because of the great experiences they have had with them.
Therefore, small business owners must ensure their current customers are satisfied and happy to retain and continue acquiring customers while spending little on recruitment. Existing customers hold the key for small businesses to boost their earnings.
Three Ways To Increase Revenues Without Adding Clients:
1. Do not bill by the hour
Billing by the hour is a quick way for small business owners to lose out on money from their current customers. When small business owners bill their services by the hour, they are down charging their employees’ time and effort to complete them. Therefore, they should consider assessing their customers a flat rate for each service and additional charges for any other work they finish. Doing so will allow small business owners to upcharge their current customers for the same services they were offering at a cheaper hourly rate.
Furthermore, this may also cause their employees to become more efficient in completing their work. When employees are assured that their labor is worth a set price, they do not have to drag it out for hours to receive the money they feel they deserve. They will be more inclined to finish a project as efficiently as possible and move on to the next.
2. Offer new services or products to increase prices
Another simple way small business owners can work with their current client base to increase their revenue is by introducing new products and services. They can entice their existing clients to try these new offerings at a discounted rate. An easy way to do this is by encouraging their clients to add the new product or service to their usual transaction at a, let’s say, 50% discount. If these customers fall in love with this new product or service, they will be more likely to purchase it next time at the total price.
Small business owners could even offer their existing customers a 10% discount on the product or service if they subscribe to receive it weekly or monthly, for example, automatically. While it may seem simple, giving current customers a discount on any new products or services is an easy way for small business owners to gain more income from their established customers.
3. Introduce a premium service or product for current customers
Customers love to receive exclusive services or products from their favorite businesses. Therefore, another great way for small business owners to increase the revenue they receive from their current customers is by offering premium services or products exclusively to them. Whether these are add-ons to the services or products they currently buy or new offerings entirely, rewarding your customers with whom you have a preexisting relationship is a sure-fire way to increase your revenue. Current customers will feel valued and appreciated knowing they are the only individuals who can purchase these services or products. Furthermore, this feeling of exclusivity will encourage them to want to continue to take advantage of these offerings as they know not every customer has access to them. Introducing these premium services and products is a simple way for small businesses to increase their revenue without worrying about recruiting new customers.
A small business owner’s current client base is one of their most valuable sources of income.
However, all too commonly, many emphasize recruiting new customers than leveraging those they already have. When small business owners have customers, they can rely on them to frequently do business with them, and they do not have to concentrate as much energy and money on marketing to potential customers. They can, instead, focus on marketing to and upselling those they already do business with. By doing so, small business owners can strategically increase their revenue without acquiring any new clients.
Existing clients are essential to the well-being of any small business. Therefore, it is crucial that small business owners adequately leverage them to receive the business and revenue they need to continue operating their businesses efficiently and successfully.
PaySmart is a payroll provider located in Mechanicsburg, Pennsylvania, supporting small businesses in the Central PA region. We are dedicated to helping small businesses take care of their payroll needs. To learn more information about how PaySmart may provide payroll solutions, please get in touch with us at 717-766-1777. Our New Client Concierge is waiting for you!