1. Make sure your prices promote an increase in profit margin
Pricing products effectively is no longer a vague form of art; competition and demand have made it a form of science as well. As markets continue to become more dynamic, your pricing strategy should reflect this by being flexible and agile. Your pricing strategy is the foundation with which you base your revenue and profit margins on, so if you haven’t created a strategy which is proven by data to promote profit, it is the first aspect of your business you should focus your attention to.
The data you need to begin improving and adapting your pricing strategy can seem endless, but keeping track of the information you need does not have to be a time-consuming task. With the help of advanced pricing software such as the platform we provide, perfecting your pricing strategy can be as easy as just a few clicks and can save you several hours of tedious labor.
Additionally, by utilizing our platform, you can be well prepared for the future effect of any decisions you make regarding price changes and will always be aware of how exactly each pricing decision you make is impacting your strategy, or whether they are in-line with your objectives. Bringing your pricing strategy out of the dark ages of manual, in-house monitoring and into the data-driven future is therefore a promising way to increase your sales and revenue, and is also one of the easiest positive changes you can integrate into your company.
2. Have clear, well-defined goals
If the previous point had you wondering what objectives you even had in the first place, now would be a good time to consider them in detail. The first step is defining your goals. Some might laugh at this prospect; surely, all businesses aim to promote growth, to increase their sales, and increase their revenue. But these three targets are not one in the same. For example, increasing your sales does not always lead to an increase in revenue. And promoting growth may require investments which do not initially result in a revenue increase, either.
Knowing where you want to go in the first place is the best way to figure out how to get there. You could have the best tools available to you in the world, but without you and your teams working towards clearly defined targets, you may find your goals harder to accomplish. The key here is to be as specific as possible. Set targets for individual product teams that are in accordance with more general objectives. If your main goal is profit increase, then you may want to see certain KVIs increase their profit margin by 5% within 2 or 3 months, for example. Without this structure, your business may struggle to come to conclusions about which actions to take in order to improve.
3. Communicate more with your customers
Customers appreciate being heard, and are surprisingly willing to converse with the retailers they buy from. Whether it be in the form of surveys, reviews or even referrals to others, customers want to communicate their thoughts about their shopping experience. For the retailer, this has several advantages.
Not only could customers direct you to more potential buyers in a more genuine manner than general marketing, they can also pinpoint flaws within your system that are hard to notice from any perspective but theirs. By opening multiple avenues of communication with your customers, you are essentially getting free press and free consultation to improve your business with. So long as your company is receptive to the feedback you receive, you will be able to make changes to your business that ensure a positive customer experience. The result will be an increase in traffic and sales, and therefore a likely increase in revenue as well.
4. Create more incentive
Everyone loves to celebrate. Whether it be important holidays like Christmas or more personal reasons like a birthday, giving your customers incentive to shop will give you a surge in sales. The retail industry as a whole has created events like Black Friday or Cyber Monday to promote sales and encourage consumers to shop. Many companies have gotten even more creative with this idea and have created their own holidays complete with promotions, discounts, and special offers that draw customers in and encourage them to buy multiple items at a time.
Your business can stand to benefit from personalizing offers to create more incentive to buy, like recording the birthdays of shoppers with loyalty memberships and offering customized discounts accordingly. In a more general sense, you could also create your own holidays surrounding your brand in order to bring in new customers and keep loyal customers coming. Many consumers are simply looking for a reason to buy more, and if you manage to find a creative reason to give it to them, you will see a spike in sales accordingly.