5 tips to generate more revenue for your agency
Flip Keijzer, September 20, 2019
Every business with the ambition to grow wants to optimize their revenue stream. But how do you optimize your revenue? And which tools can you use to boost it? In this blog, we will give you some tips and tricks to realize a better revenue stream.
Broaden your product range
Specialized agencies often encounter clients that want services that are not included in their product range. The simple way to deal with this is to tell a customer that you can’t deliver this service. But what if you broaden your horizon? By turning off customers you’ll send them to competitors and lose revenue.
There are several ways to broaden your product range. The following strategies might help you:
- Adopt services that are closely related to your core expertise. A text agency that’s specialized in writing content for the business market could broaden its services by offering related communication services such as blog posts, market research, social media marketing or the development of SEO strategies. This broad product range makes the company more competitive and interesting for a wider range of customers.
- To expend your product range you can also offer (quality) variants to a product. Think of different streaming formats (standard, HD en FHD) that streaming services offer. Or hosting services that are tailor-made to the size of a company (freelancer to multinational).
- You can personalize your services even further by offering collectors items or products that can be designed by customers themselves. Usually, this doesn’t involve a lot of investments but it potentially does bring a lot of extra revenue.
- Working together with other agencies might also be a smart way to broaden your product range. As a text agency, you could work together with a photo studio to create shared and more complete productions.
Focus on a specific type of customer
Although it’s great to look for ways to please a broad variety of clients it might also be smart to focus on a specific group. There’s a lot of profit to be won for the company that becomes the authority for a specific product or service. Targeted marketing is necessary for this. For this, you need to know your customers. That’s why it’s important to do marketing research. Approach your customers actively to find out what they want. When you know your customers you can deliver relevant information to them
When mapping your target audience it’s important to keep these things in mind:
- Demographic characteristics. This includes data such as age, gender, region, family composition and income.
- Psychographic characteristics such as norms and values, interests, lifestyle and hobbies.
- Media channels and information sources. Where do people get their information? Which social media channels are popular within the target group? Which newspapers and magazines are they reading? And which website do they visit regularly?
- Problems, bottlenecks and issues that members of your target group encounter. By mapping these you know how you can help your customers with services you can provide.
Niche markets might be small markets with a limited amount of prospects. But these prospects are willing to pay a lot of money for specific products or services. A great example is a luxurious theme travel destination. Such as photography, nature (those usually go hand in hand), art and culture or culinary travel trips.
Sell more to existing customers
Most companies focus on recruiting new customers. But what if you sell more products to existing customers? These customers already know your company and they already have your trust. There are many ways of generating more profit from existing customers. Will give you some examples:
Cross- and upselling
According to analysts from Forrester 10 to 30 percent of revenue made in e-commerce comes from Cross- and upselling. Cross-selling is aiming to sell a relevant product to the initial product your selling. A belt that goes well with a pair of trousers for example. Upselling means that you sell a higher-end product by offering an upgrade to a client. Premium or PRO packages are examples of this. As an agency, you can offer clients some extra’s when they upgrade to these packages.
Clients will appreciate it when you approach them in a personal way. Targeted and personalized e-mail marketing is a great way to get a better bound with your customers and generate more revenue.
- Marketing automation is a great way to reach and identify leads. This marketing method makes it possible to send out personalized emails to leads. Generic emails won’t be read and they will end up being removed. Personalized emails have a far greater chance of being read. By sending personalized emails your clients or prospects will get information that fits their needs.
- Email marketing is also a great way to reach inactive clients that haven’t made a purchase in a while. By sending out personalized automated emails to them you can activate and encourage them to make a purchase.
Bulk and volume discounts
There might be prospects that need a big volume of products or services. To attract them you could offer bulk and volume discounts. This might trigger them to choose for your company. It’s also easier for you to sell a large quantity of products at one time. You only have to set up an invoice once as well.
Reviews are often highly valued by visitors. Research from Multiscope shows that about 80 percent of visitors take reviews into consideration when visiting comparing websites. A consumer usually assumes that a service or product is good when the reviews are positive. The same effect is generated by referrals. When you ask your clients for potential new clients this is called a referral. After getting their contact details you can reach out to them. This is a great way to expand your network. When these new prospects hear that another company has referred them to you, their more likely to buy a product.
The effectiveness of your employees
When you deploy your employees in more effective way you can get more work done by spending fewer recourses. The net result will be a better revenue with less labor costs.
Automation with RAD and RPA
Rapid Application Development (RAD) and Robotic Process Automation (RPA) help you by automizing repetitive tasks. In this way, your employees can focus on tasks that bring more value to your company. RAD will help you with developing applications or services that streamline business processes. Think of applications for debtor and expense management, relationship management systems, applications for automatic invoicing and web portals. But also systems that help to link different software tools together in order to share information.
RPA enables you to develop software robots that take over repetitive tasks. These bots can (partly) take over digital processes such as chat functions in customer service. In this way, simple questions can be answered by bots while the more complex issues can be tackled by your employees.
Hosting and IT
In order to work structured and efficient, it’s essential to have a good hosting and IT network. Hosting is often looked upon as something you need to find as cheap as possible. But the quality of your hosting is essential for your website performance. The speed of your website, the downtime of it and the capacity of visitors it can deal with, are all important for the profit your website is able to make. Find a hosting partner that delivers quality and you’ll make up for the extra cost of it easily.
A good IT network is important for your revenue as well. Pay attention to the following aspects:
- Make sure there’s a good integration between the systems that you use.
- Set up rules for those who have access to certain parts of your system. In this way, everyone knows what their tasks are.
- Be warned for shadow IT. This will prevent safety issues and it will give you a better overview.
- Make sure privacy sensitive information gets stored in save places according to the General Data Protection Regulation (GDPR) rules.
There are many ways to improve your revenue. These can be marketing related solutions or IT queries. When it comes down to hosting Savvii is able to help you out. We can help you by providing quality hosting for your customers. We will help you fit our hosting, update, and security services into your agency. Buying in bulk will allow you to generate revenue each month without having to overcharge your clients.
Want to know more? Get in touch with us and we’ll gladly help you out.