Expanding a business's revenue streams is essential. The goal goes beyond ensuring a good net margin and higher profits; it also focuses on providing more security and stability to the company, reducing the chances of suffering from market seasonality. Companies without a plan usually focus on selling more and more, but in a competitive market, this is not enough. So, what is needed to expand your revenue if selling and maintaining sales is not enough? This is a question that will be answered by business strategist Daiany Lourenço.
Inexperienced entrepreneurs may consider the relationship with the consumer concluded after completing a service or sale. This way of approaching negotiations with their audience causes their CAC (customer acquisition cost) to become increasingly higher, as the audience does not return or even forgets about the company, increasing operational costs and harming the sustainability of the business. On the other hand, investing in retaining current customers is significantly more economical than acquiring new ones. In commerce, about 63% of revenue can come from loyal customers; In the service sector, the number is even more significant, reaching 70% to 90% from loyal customers.
To expand revenue streams, it's essential to understand the entire customer buying process. Signals indicating readiness to purchase new products or services are key.
This can be achieved by observing customer needs and what products related to the main service can be offered. For example, in addition to selling bicycles and working with bicycle repair, when the customer needs maintenance on the product they purchased from your store, they will return. And if, by chance, you have gloves, helmets, and other useful items in your store, the likelihood of the customer spending more in your business is very high.
“A recent example is Arena Beach Club, a beach sports center. I created a business plan that, in addition to the sports area, included 16 more services, such as bathing and grooming, a hair salon, a barber shop, a playground, a laundry, a bar and restaurant, a party room, among others that offer convenience to the customer,” Daiany points out.
But why do all this? Besides diversifying the services available, allowing audiences with different needs to enjoy the space and generate a variety of income, it also eliminates the need to travel to acquire different services. In today's society, weekends are rarely just for leisure; there are many demands that, if not met, create stress and rush people's routines.
By offering essential and leisure services in the same place and at the same time, without the need to rush from one address to another and without the obligation to acquire everything or subscribe to a plan, it provides freedom, flexibility, and comfort to the customer.
"Therefore, it's essential to question whether the company already offers everything its customers need. Developing new solutions that meet customer needs is fundamental to continued success. Being in constant contact with customers to receive feedback is a recommended practice for identifying areas for improvement and new business opportunities," says Daiany.
Investing in revenue growth within the existing customer base, alongside the continuous development of new products and services, is essential for the sustainability and consolidation of a business. However, it is crucial to maintain the understanding that customer retention is indispensable for long-term stability and growth.
