18+ Proven Strategies to Increase Revenue & Real Examples

It can feel overwhelming to track all the different numbers when you're trying to grow your small business and make more money. Should you focus on sales, marketing results, or keeping customers happy and coming back? 

The good news is, you can focus on all of these by tracking and planning strategies to increase revenue, and we’re here to explain how. But before we dive in, let’s first define what revenue growth really means.

What You Need to Know About Increasing Revenue

What does it mean to Increase Revenue?

In simple terms, increase revenue or revenue growth is the increase in the amount of money your business makes over a set period of time, compared to the same period before. For example, it's like comparing how much money you made this month with what you made last month.

People often mix up the terms revenue, sales, and earnings, so here’s a quick breakdown:

• Revenue: This is all the money your company makes from various sources, like sales, investments, royalties, and fees. It doesn’t include expenses.
• Sales: This is the money earned just from selling products or services, without considering expenses.
• Earnings: This is what's left after subtracting expenses from revenue.

One more key difference is that sales and earnings are usually focused on specific goals, while revenue growth is more of an ongoing strategy, not just an end goal.

How to Calculate Revenue Growth?

Revenue growth rate measures how much your revenue has increased or decreased over a set time period, like comparing last year's revenue to this year's. The time periods should be the same length, so you can compare year-to-year or month-to-month.

To figure out revenue growth as a percentage, subtract last period's revenue from the current period’s revenue, then divide that by last period's revenue. For example, if you made $1 million last year and $2 million this year, your growth is 100%.

The formula is: (Current Period Revenue - Prior Period Revenue)/Previous perious

It can be calculated annually, quarterly, monthly, etc. The formula includes both positive and negative changes in revenue growth.

How to Anticipate Revenue Increasing Trends?

Revenue growth doesn’t always follow a steady upward path. If you track it regularly, you'll notice that sometimes your revenue dips or stays flat, and that's completely normal!

Every business goes through different stages in its life cycle, and revenue expectations change during each stage:

• Introduction (Startup): This is when everything is new, and you’re learning the ropes. Many businesses don’t see much revenue growth during this time, and unfortunately, some even close. It can make a difference when you get help from external sources.
• Growth: At this stage, your business is more stable, with a plan in place. You can focus on more than just internal issues, though revenue might stay flat or even drop as you seek investment to grow.
• Maturity: By now, your business is several years old, and you feel more confident in your strategy. Revenue growth becomes more predictable, often increasing by about 5% per year.
• Renewal/Decline: If revenue has been dropping for three quarters in a row, it could mean deeper issues that started earlier. It’s a reminder to prevent long-term declines that consistent monitoring and adjusting your strategy are key.

Revenue naturally goes up and down as your business moves through these stages. Stay focused on tracking revenue, create new strategies, and stay open to learning since it might take years to see steady growth.

The takeaway is that revenue will fluctuate over time. Instead of viewing declines as failures, see them as chances to rethink your strategy. Keeping a close watch on revenue growth can help maintain jobs, satisfy customers and investors, and keep your business on track.

Growth should be seen as an ongoing strategy, not just a goal because of this reason. You can’t always control the market, but you can control how you respond to it, which is what drives your revenue growth strategy.

18+ Proven Strategies to Increase Revenue

Now you understand and have a comprehensive view for increasing revenue, let’s explore 18+ proven strategies to improve your business.

1. Set Clear Goals

Set clear, measurable goals for how much you want to boost your sales and revenue. This helps you figure out the best approach and methods to reach those targets. Plus, as you track your progress and celebrate your achievements along the way, these goals can keep you and your sales team motivated.

2. Know Your Customer Base

It’s really helpful to understand who your customers are, so think about offering a short survey to gather information about them.

• After someone makes a purchase, you can ask them to do a quick survey to help you better define your target audience and fine-tune your marketing efforts. 
• You can also send surveys to potential customers through social media or online ads. 
• To encourage people to participate, consider offering a discount or an opportunity to win a gift card.

3. Grow Repeat Customers

A great way to boost revenue is by focusing on your existing customers. It's a key to long-term success when you can keep customers coming back. You can build strong loyalty by offering excellent customer experiences, personalized support, and staying engaged with them. Loyal customers tend to create more repeat purchases, buy more, and even refer new customers. Using customer retention programs, offering rewards, and getting feedback from customers can help you strengthen these relationships and create a steady revenue stream from your current customer base.

For example, Shopify offers a great example of transaction-based pricing through its discount and automatic pricing features. With Shopify, you can set up automatic discounts, such as percentage or fixed-amount discounts, that apply at checkout in real-time. It helps streamline operations and create a smoother checkout experience, while also encouraging repeat purchases from your customers.

Learn more about Customer Loyalty: How to Build and Maintain Relationships here.

4. Reach Out to Past Customers

Getting former customers to return is often easier than attracting new ones. It’s a good idea to have a marketing plan just for them, so you can reach out in a way that’s different from how you talk to current customers.

 You can offer special deals, like a discount if they trade in old items for a replacement or upgrade. Plus, former customers can help by giving referrals or reviews, which can bring in even more new customers.

5. Adjust Your Pricing Strategies

To boost your revenue while still keeping the number of sales, it’s worth reviewing your pricing strategy. You might lower prices to attract more buyers and gain an edge over your competitors, or, if your brand is trusted and seen as valuable, you could increase prices. 

For subscription services, offering a few simple pricing options can make shopping easier and more appealing to customers.

6. Encourage Bigger Purchases

A simple way to get more sales from your current customers is by offering products they might also need. Think about items that go well with what you're already selling or services that complement your products. 

For example, if you own a coffee shop, you could increase sales by offering items that pair well with coffee, like pastries, reusable mugs, or coffee beans for home brewing. This way, customers can enjoy a full coffee experience, and you increase the chances of making additional sales.

7. Create Product Bundles

Bundling products is a great way to encourage customers to buy more since they can save money by getting multiple items at once. You can create a bundle by packaging items together and selling them as a set, or you could provide a discount when customers buy several items at the same time.

There are many types of bundles, you can opt for one that suits your product and business best:

• Pure Bundling: Products are only sold as part of a bundle and can't be bought individually.
• Mixed Bundling: Products can be purchased on their own or as part of a bundle.
• Leader Bundling: A popular item is paired with less popular products in a bundle.
• Joint Bundling: Two or more products are sold together for a single price.

To understand the definition and how to apply these strategies, read more at our Bundle Pricing blog.

8. Increase Frequency of Buying

Getting your customers to buy more often is a great way to grow your revenue. You can offer things like special deals, loyalty programs, or subscriptions to encourage repeat purchases. Regular reminders through emails or social media can help keep your business fresh in their minds.

For example, if you sell skincare products, you could offer a subscription service where customers get their favorite items delivered every month. This way, they don’t run out, and you build steady, long-term business.

9. Expand Product/Service Offerings

Adding new products or services is a simple way to bring in more revenue and attract different types of customers. By offering more options, you can meet their various needs and encourage them to buy more from you. This could be introducing new products, offering related services, or creating bundles like the above mentioned.

For instance, if you own a pet store, you might launch a new line of eco-friendly pet toys. This new product can attract environmentally conscious pet owners and encourage your current customers to check out the latest additions to your store.

10. Offer More Payment Options

You might boost your sales by adding new payment options that your customers find easier to use. Look at what payment methods are popular in your industry and set up the systems to accept those options, whether it’s credit cards, a cash app, or quick pay options.

Another way to increase sales is by offering flexible payment plans, like layaway or installment plans. These let customers pay in smaller amounts over time instead of one big payment. 

For instance, if you sell high-end electronics, you could provide an installment plan where customers can pay for a $1,000 laptop in 12 monthly payments of $83. This makes it easier for customers to afford the product without paying everything upfront.

11. Adjust Shipping or Delivery Fees

Many customers are happy to pay a bit more for a product if it comes with free shipping and handling. For online sales, you can include the shipping and handling costs in the overall price of the item instead of listing them separately. If you deliver locally, you could use the same approach to make things easier for your customers.

12. Partner Up with Other Businesses

Working with strategic partners can be a win-win and boost your revenue. Just by combining with your strengths and resources, partnerships can help you reach new customers, find more ways to sell your products, and add new income streams.

It's important to find partners who share similar goals and offer complementary products or services. By teaming up for joint marketing, creating new products together, or forming strategic alliances, you can enhance your brand’s visibility, attract more customers, and increase your revenue.

13. Step Up Your Marketing and Sales

To boost your revenue, you need to enhance your marketing and sales efforts. It means finding better ways to promote your business and improve how you sell your products.

• You can start by exploring new marketing methods, like social media ads, email campaigns or marketing funnel to reach more people. Make sure your marketing messages are engaging and tailored to your audience.
• Also, work on improving your sales techniques. Train your team to understand what customers need and how to close sales effectively. Keep track of what works and make changes as needed.

For example, if you run an online shop, you could launch a targeted social media ad to promote a special sale. Pair that with personalized emails reminding customers about the sale. This can help you attract more customers and increase your sales.

14. Get Customer Feedback

One way to know how your business performance is going is to listen to your customers then utilize it to improve your business and increase your revenue. By asking for their opinions, you can find out what they like, what could be better, and how you can make your products or services even better.

Make it easy for customers to share their thoughts by using simple surveys, reviews, or just having a chat. Show them you care by acting on their suggestions and making improvements.

For example, if you run a restaurant, you could ask diners to fill out a quick feedback form about their meal and experience. Use their comments to tweak your menu, improve service, or enhance the overall shopping experience. It not only helps you keep customers happy but can also encourage them to return and spread the word about your business.

15. Build a Strong Reputation

Think about how you can build a strong reputation for your brand or team. Getting public reputation from magazines or well-known figures can help introduce your product or service to new customers. It can also show that you’re an expert and provide real value to your audience when you create your own podcast, write a book, or publish helpful articles.

Being active in professional groups can boost your visibility, especially if you’re selling to other businesses. As a recognized figure in your industry, you can also do partnerships with other businesses to offer joint promotions or reach more customers together.

16. Revise Sales Incentives

Adjusting how you reward your sales team can boost sales by keeping them motivated. Try introducing new ways to measure their success or reward different types of sales. This can give your team a fresh challenge and spark their enthusiasm. 

For example, you could offer bigger bonuses for reaching specific targets or change your commission plan to provide higher rewards for certain sales achievements.

17. Create a Community

Building a powerful community around your brand can help you boost loyalty and increase revenue. When you create a space where customers feel like they belong and are valued, you reach the highest level of the CBBE model: Resonance. This is when customers not only know and like your brand but are also deeply connected to it.

Source: Keller’s Brand Equity Model - Zorgle

To build this kind of community, focus on making real connections with your customers. Create opportunities for them to interact with each other and with you, like through social media groups, forums, or special events. Offer exclusive content, early reach to new products, or special perks to make them feel special and involved.

For example, if you have a fitness brand, you could set up an online group where members can share their workout experiences, get tips from experts, and join fitness challenges. This helps your customers feel more connected and loyal, which might lead to more sales and growth for your business.

18. Keep Innovating

To keeping your revenue growing over time, innovation is key. By always working on new ideas and improvements, you can launch new products or features that meet changing customer needs and fill market gaps. Due to this, you can stand out from your other competitors, attract new customers, and find new ways to increase sales.

You should also encourage your team to be creative and try new ideas. Along with that is to listen to customer feedback to improve what you offer. By creating a culture of innovation, you’ll keep your business fresh and exciting, leading to more opportunities for growth and revenue.

Common Problems and Solution

Growing your revenue can be challenging, but understanding and tackling these obstacles can help you stay on track. Businesses often face issues like market saturation, economic downturns, shifting customer preferences, and tough competition. For instance:

• Market saturation happens when there are too many similar products or services, making it hard to stand out.
• Less spending from customers which would affect your revenue because of economic downturns.
• Additionally, you will need to adapt quickly to keep up due to customers changing tastes and rising competition.

To tackle revenue growth challenges, try adapting, adjusting and broadening your target market, exploring new ways to make money, and investing in new technologies and innovations. It can help keep you ahead and grow your business over the long term due to these strategies.

You can reach different customer groups and reduce the risk of market saturation when expanding your target market. You can also create fresh opportunities and diversify your income when looking into new revenue sources or markets. Because technology continues to shape the business world, embracing innovation and digital changes is key.  Your business will be set up for lasting success just by staying up to date with tech trends and adapting to them.

3 Real Examples of Increased Revenue

Now, let's look at three real-life examples of businesses that implemented a revenue strategy successfully:

1. McDonald’s – Commit to the Core

Image Source: corporate.mcdonalds.com

A real-life example of boosting revenue is McDonald's "Commit to the Core" plan. The strategy included focusing on their most popular items, like the Big Mac, Chicken McNuggets, and their World Famous Fries. By simplifying their menu and improving how quickly they served customers, especially at the drive-thru, McDonald's aimed to make customers happier and increase sales.

The outcome was impressive: McDonald's saw a rise in sales as the streamlined menu and faster service attracted more customers. This approach helped revitalize the brand and boost revenue, showing how focusing on what customers love can lead to business success.

2. Netflix – Subscription-based model

Image Source: netflix.com

Another example of a successful revenue growth strategy is Netflix's shift to a subscription-based model. Initially, Netflix operated as a DVD rental service, but they saw the potential in digital streaming and changed their focus to an online subscription service.

This move allowed Netflix to:

• Reach More People: Streaming made it easy for more people to access Netflix’s content without needing to rent physical DVDs.
• Grow Their Customer Base: The subscription model attracted millions of new subscribers, leading to a huge boost in revenue. By 2023, Netflix had over 230 million subscribers worldwide.
• Invest in Original Shows and Movies: With more income from subscriptions, Netflix was able to create its original content, keeping customers engaged and loyal.

By adapting to consumer preferences, Netflix became a leading entertainment platform and significantly increased its revenue.

3. Nike – Direct-to-consumer (DTC)

Image Source: seekingalpha.com

A great example of a successful revenue growth strategy is Nike’s shift to a direct-to-consumer (DTC) approach. Instead of mostly relying on third-party retailers, Nike started focusing more on selling directly through its own stores and online platforms.

This strategy helped Nike:

• Increase Profits: By selling straight to customers, Nike didn’t have to share profits with retailers, allowing them to keep more money from each sale.
• Build Stronger Customer Connections: Nike could interact with customers directly through its website and app, offering personalized experiences, exclusive products, and loyalty rewards.
• Capitalize on Digital Sales: With more people shopping online, Nike made the most of its digital channels, leading to a big boost in online sales.

Thanks to this shift, Nike saw its direct-to-consumer sales grow, contributing more to its overall revenue and helping the company stay competitive in the sportswear industry.

Focusing on online selling is also one of the most popular ways that any business should also invest on to increase revenue. It’s also the reason why design tools like EComposer – Top Drag & Drop Shopify Page Builder is here to streamline the building store process for you. 

With any page type or section you need, the app can assist you in customizing your store design without the need of coding skills. Beyond that, its built-in extension and stunning page templates will assure your online presence reach a new height of revenue.

If you’re not on Shopify yet, now’s a great time to start. You can get a special deal: just $1 for the first month on any plan, giving you a chance to explore Shopify from top to bottom.

Wrap Up

Once your business is up and running smoothly, it’s natural to start thinking about how to increase revenue. If you're at this stage, congrats! That's a great place to be.

Luckily, you've just come across some helpful ideas to get you started quickly.

You might choose to focus on improving your marketing, adding new products or services, streamlining your tools with a revenue growth platform, or adjusting your pricing strategy—just like some of the ideas mentioned in this article. The key is to take it step by step, try one or two new strategies at a time, and track your progress. This way, you’ll be on the path to boosting your business revenue in no time.

FAQs on Increased Revenue

1. Why is it important to increase revenue?

Increasing revenue is crucial for the growth and sustainability of a business. It allows you to:

• Expand: Invest in new products, services, or locations.
• Hire: Attract and retain top talent.
• Improve: Upgrade equipment, technology, or facilities.
• Survive: Weather economic downturns or unexpected challenges.
• Profit: Increase your bottom line and reward shareholders.

2. How to increase revenue in service industry?

Here are some strategies to boost revenue in the service industry:

• Offer additional services: To meet customer needs, try to expand your service offerings.
• Upsell and cross-sell: Encourage customers to purchase higher-value services or complementary products.
• Build customer loyalty: Provide outstanding customer service and create loyalty programs.
• Improve pricing: Review your pricing strategy to ensure you're charging competitively.
• Leverage technology: Use technology to simplify processes and enhance customer experience.

3. How to increase revenue for small business?

Small businesses can increase revenue by:

• Targeting the right market: Identify and reach your ideal customers.
• Improving customer satisfaction: Provide exceptional service and products.
• Leveraging digital marketing: Utilize online channels to reach a wider audience.
• Networking and partnerships: Build up relationships with other businesses.
• Optimizing operations: Streamline processes and reduce costs.

4. Is increasing total revenue the easier way to earn more profit?

While increasing total revenue is a significant step toward higher profits, it's not the only factor. Other factors that influence profitability include:

• Cost control: Managing expenses effectively.
• Pricing strategy: Setting prices that cover costs and generate a profit.
• Efficiency: Optimizing operations to reduce waste and increase productivity.

By focusing on both revenue growth and cost management, you can maximize your business's profitability.