Most economists are predicting there will be some sort of recession this year. We hope it will be mild and short-lived, but no matter what its depth and duration, it still means it may be tougher for your business to grow revenue this year. Here are five strategies you can deploy to keep building revenue—even in a slower economy.
Offer more to current customers. Your present customers already know and love your product or service, so they’re much easier to sell to than brand-new prospects. Talk to your customers, and explore their pain points. Identify products or services they’re not buying now that could meet their needs. Find out if there are new products or services you could develop that they would be willing to pay for.
Come up with ways to drive repeat business. When you have customers whom you can count on coming back, your revenue is predictable, no matter what the economy is doing. To drum up more repeat business, ask yourself the following questions. Could you offer customers a discount if they came back for another purchase or engagement? Could you come up with a subscription offering for services you keep delivering every month? Are there customers who would benefit from working with you on a retainer basis?
Reframe the value of what you offer. Frame the value you deliver in terms of the money customers can save or the money they can earn by using your products or services. In an economic downturn, people cut back on non-essentials, but things that make them money or save them money are more essential than ever.
Optimize prices. In other words, raise them. Raising your prices is usually an easier way to increase net revenues than cutting your costs. If customers are now paying for your products or services, it may be reasonable to charge 10% more for them. However, instead of raising prices for everyone, consider just doing it for new customers—a great way to test new pricing without upsetting current customers. Also, think about adding a higher level of service at a higher price, or offering reduced services for your lowest-price tier.
Dial up your work ethic. Working hard becomes even more valuable during downtimes than when the business climate is strong. When the economy slows, some people in business slow down too, hoping things will get back to normal quickly. While these people are coasting, hard workers have a great opportunity to grab more market share. The hardest workers are always the top producers—especially in downtimes.
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