Revenue growth. We all want it, but it isn’t as simple as it seems. On the surface, if you sold more than last year, your revenue grew, right? There is a lot more to it than that.
Revenue growth is a crucial indicator of success for your business, and it’s something that you should aim to improve as much as possible. But what is revenue growth, exactly? What steps can you take to increase it? Read on as we dive into these questions and dispel common myths.
Myth 1: All revenue growth is the same
On the surface, it would seem that earning new customers is the best way to increase revenue. After all, if your client is already purchasing products or services from you, how would you improve that? Focusing your efforts on bringing in new customers to boost revenue seems like a no-brainer. However, that’s not true. Some revenue is easier to get than others, and studies show it is five times cheaper to increase revenue from existing clients than to bring in new clients.
Trust is a big deal to customers, and because returning customers have already bought from you, they trust you. Now that you have them, your job becomes upselling and cross-selling to them. You can do this through targeted marketing campaigns, personal selling, or a combination.
Existing customers are also more likely to refer you to others, which brings in even more business. So while acquiring new customers should always be part of your growth strategy, don’t discount the importance of maintaining and growing your relationships with current clients. It’s easier and cheaper than you think – and the return on investment can be significant.
Myth 2: There is no such thing as growing too fast
Often, businesses feel that if they can grow at 10x, why not 1000x? This rapid growth in sales can often lead to fulfillment and customer service problems. If your product requires onboarding or operational fulfillment, bringing on too many customers too fast will create a bad experience and can negatively affect your reputation and brand.
Knowing your capacity and streamlining your new customer onboarding process will help you grow faster without putting a strain on the rest of the company. By taking the time to plan your growth strategy carefully, you can ensure that your business can scale successfully.
Myth 3: Revenue growth happens by having the best product, platform, or service
Most people assume that, as long as they have the best solution, it will prevail in the marketplace. However, this is not always the case. Through extensive research and studying shuttered startups, we have learned that the primary indicators of failure tend to be manifestations of this issue: a lack of customer adoption. People like consistency and become easily stuck in routines.
Even if your product is superior, people will still buy what they know. You must be able to articulate your solution in simple ways that people understand and want to buy.
Therefore, spending as much effort on the Go-To-Market strategy as you do on developing the product itself is critical to achieving success in revenue growth. When you can effectively communicate why your solution is better than what is currently on the market, you will likely see rapid revenue growth for years to come.
When it comes to growing a business, there are many things to consider. Do you sell more to your existing customers? How can you sell more to your existing customers? Are you at risk of growing too fast? Have you focused on the right things your customers care about to drive growth?
It can be tough to figure out the right way through these questions. Formulating a GTM plan based on proven best practices starts with understanding your customers’ needs and tailoring your strategies and tactics to fit.
Each business and market is unique, but a consistent methodology helps companies that want to accelerate their revenue do so repeatedly. Centrae can help you develop a GTM plan and realize the revenue potential of your business.
Our success coaches then follow up with a complimentary 100-day roadmap for the team to plan and execute revised strategies. Schedule a 15-minute call with our experts to determine if our assessment can deliver similar value for your business – it could be the breakthrough you need to take your company to the next level!
Do you need a proven Go-To-Market strategy or is your current strategy not working as effectively as it should?
Connect with us today for a demo to see how Centrae can build an effective and customized GTM strategy for your business.