How to Improve Your Business’s Financial Position
Income in your business depends on many factors: from a clear USP to building a marketing and sales department. In this post, we will take a closer look at the main ways to increase the income of an organization.
1. Formulation of USP
Perhaps one of the most common reasons for the lack of profit growth is the lack of a coherent USP. It is very difficult for many entrepreneurs to formulate on their own:
- WHAT they are selling?
- WHO needs it?
- What is their ADVANTAGE over competitors?
Let’s divide this question into three parts:
What do you sell? Suppose you have a website, pages on social networks, you spend money on advertising, but there are no results. This may be because you are not describing your product clearly enough. Re-analyze from the customer’s point of view the channels where they first get to know your product.
The target audience
The problem may be that the product concept is perfect, but you are offering it to the wrong people. Describe in detail your potential customers: age, gender, location, language, and what problems your product solves. The better you know your target audience, the more likely you are to find a common language with it.
Your competitive edge
Study and analyze your competitors. Your customers are always choosing between you and your competitors. Find an answer to the question, “Why should they choose my company?”
2. Search for New Clients
The increase in the number of new customers is associated with the simplification of the process of entering your sales funnel. It is necessary to analyze all the available sources of traffic in the business: through which channels do customers learn about you? It can be social networks, targeted and contextual advertising, a profitable place in the city centre, advertising from bloggers.
What customer acquisition channels do you use? Are you using all the possible ways to attract them? If not, then you need to make a decision to test new channels and further analyze their effectiveness.
Diversification is always handy. Even if you are working in the field of Forex trading, the addition of CFD-trading activity to your portfolio will be beneficial. So, establish partnerships with various companies through which you can promote your product, launch a blog like Forextime, and you will be able to reach new clients.
3. Increase Conversion Rates
Once you’ve identified your top traffic sources, it’s worth considering getting a predictable lead-to-buyer conversion. The conversion can be described at several levels:
- The first level concerns the level of awareness. Your potential clients may not even be aware that they have a problem and that you are the one who can solve it. To do this, you need to transfer them from the state of unconsciousness to the level of awareness of the problem. This can be done by focusing on their pain.
- The second level is the transition of those who are aware of their problem into those who are interested in your product to solve it. To increase the rates of this conversion, you need to understand why your product interests or does not interest a potential customer. Analyze the effectiveness of advertising campaigns: creatives, audience, their reactions.
- The third level of conversion is when moving from an interest to a desire to buy your product or service. Why does the client want to buy from you? Perhaps you have faster delivery across Nigeria, have a mobile application, or a profitable loyalty program.
- The fourth level is the transition from the desire to buy to the decision to buy. A potential customer came to your site, selected a product, added it to the cart, but did not buy it. Why? The person could forget or was distracted. Consider a further strategy for working with this category of customers through content marketing or, for example, retargeting. Translate them into a messenger and communicate using a chatbot. Your long-term profit depends on the elaboration of this stage. Agree that in a few years you can lose thousands, or even millions of naira, without a system for pushing customers to purchase.
4. Improving sales skills
Let’s say you have successfully implemented all the above. Your business is steadily receiving new leads, but the conversion rate from requests to purchases is very low. The reason lies in the fact that the sales department is not built.
Analyze how quickly your managers respond to incoming requests, whether all stages of sales are followed, whether they know sales techniques (if not, then train them), work out all the objections of potential and current customers and, based on them, create your unique scripts for working with requests.
5. Increase in the Margin
Another way to increase the income of an organization is to increase the margin. It is the difference between the cost of a product and the price of its sale, in other words, it is a markup. There are two ways to increase margins: raising prices and lowering costs.
If you already have a queue of customers, and you are unable to cope with the flow, then a small increase in prices will not harm your business: your product is already in demand. To raise the price and not lose customer loyalty, make your product more valuable in the eyes of the consumer, and also warn about the increase in value in advance.
Cost reduction can be carried out in various ways: searching for new suppliers, saving on electricity, reducing production costs, and much more.