Digital sales increased after the government implemented restrictions on the movement of people when the pandemic started. The situation has since improved after more than 55 percent of the total population were vaccinated. The US economy also started to recover and the shelter-in-place orders were lifted.
Despite the better situation, businesses have yet to fully recover from the lost sales they experienced over a year ago. Due to this, many businesses have to increase their revenue streams to reach more customers in the market. Here are the different ways that businesses should do to their revenue streams.
If the business has not gone online yet, it should start setting up a website and social media accounts. E-commerce sales saw a significant increase when the pandemic started in the first quarter of 2020. While it declined after a while, the figures are still higher than before the health crisis started.
And with consumers getting used to buying products online, businesses should connect with them in the online marketplace. The first thing that they should do is to create a well-designed and responsive website.
They should ensure that customers can access the website using their mobile devices since around 85 percent of Americans own a smartphone. And they will likely use this device to surf the internet and look for products to buy.
At this point, businesses will appreciate the benefits of search engine optimization (SEO) in making their presence felt online. SEO allows businesses to increase their online presence and connect with their customers online. It also facilitates their expansion and reaches new customers in the market.
Open a Direct-To-Consumer Revenue Stream
Many businesses offer their products through retailers that resell them. While this increases the number of sales channels of the business, the pandemic forced many retail stores to close. At this juncture, businesses should consider opening a direct-to-consumer (DTC) revenue stream.
In this business model, manufactures of products bypass third-party retailers and sell their products directly to consumers. Even though they will compete directly with retail customers, they should limit their DTC outlets to certain areas where no retailer is offering their products.
They should consider selling the products at the same price as their retailers. A DTC revenue stream allows businesses to add another sales channel to help them boost revenue in the middle of a health crisis.
Use Affiliate Networks
Businesses should also approach affiliate networks and offer their products through them. An affiliate network is a group of companies offering a host of products to their customers. These companies earn a commission whenever they sell a product. They are similar to retailers, but they focus on online sales rather than have a physical store.
Aside from approaching a retail network, businesses should also create their affiliate marketing program, which attracts influencers and bloggers interested in offering their products to their audience.
Offer Bundles in the Market
Offering bundles is another option that businesses should consider when creating a new revenue stream opportunity. They should look at their product offerings and see it’s possible to bundle compatible items and offer them in the market.
When a business offers a bundle in the market, it also increases awareness of the other products it offers. Businesses should consider offering popular products together with not-so-popular products in the bundle. This allows them to introduce new products to customers who are not aware that they are offering these products. Packaging products together increases their revenue stream and encourages brand loyalty among their customers.
Take Care of Existing Customers
While businesses will focus on increasing their revenue streams to expand their reach in the market, they should not forget their existing customers. Businesses should understand that it is cheaper to keep existing customers than to entice new ones to buy their products.
Once a customer buys their products, they should focus on keeping them loyal to their brand. Businesses should remember that the spending habits of repeat customers are bigger compared to new customers since they already know the quality of the products the business offers.
Businesses should take care of these customers by giving them a memorable experience whenever they buy something from the business. The business should also act on the feedback of the customer and work to resolve any issues.
When businesses take care of existing customers, the customers will recommend the business’s products to their family and friends, which is essentially word-of-mouth marketing.
Increasing the revenue stream of a business is one way for them to generate income to stay afloat during the pandemic.