Company turnover: how to increase it to make a profit?

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How can I increase my company’s revenue?” is a common question asked by any professional. To do this, it is necessary to adjust some aspects of the business so that revenue increases without increasing expenses.

Check out tips on how to increase your company's revenue and understand which points may be preventing you from achieving the expected results.

Profit x revenue x company turnover
Before we get to the tips on how to increase your company's revenue, we need to define the terms profit, revenue and turnover. Revenue is all the money received from the sale of products or services that the company offers. If your company sold 1,000 units of a product for R$50, the revenue for the month was R$50,000.

If, of the monthly revenue above, your business malta phone number lead received half in cash and the other half in installments, the business's revenue for the month was R$25,000. In other words, revenue is what you have in cash and revenue involves all the money earned, including what is yet to come in.

Profit is the amount left over after paying all bills, employee salaries, and suppliers. Let's say all these expenses cost R$15,000, then the profit for the month will be R$35,000 ($50,000 – R$35,000) .

How to do financial planning for your company to grow
How to increase company revenue
Now let's look at some tips on how to increase your company's revenue, that is, the amount received from the sale of your business's products or services. To do this, we can focus on the three factors that directly affect revenue: the number of customers, the average spend per customer, and the frequency of purchases. By increasing any one of these factors (or all of them), your revenue will increase.

Increasing the number of customers
Increasing your customer base is the most obvious way to increase your company's revenue. To do this, you need to prospect for customers , that is, get in touch with consumers who might like and buy from your company.

Investing in marketing is also essential to increase your customer base and strengthen brand awareness. We’ve put together some digital marketing trends for 2022 that can help.

all about winning the first customers
Increasing purchase frequency
Another way to increase your company's revenue is by getting your customers to buy more often. Building good relationships and building customer loyalty is easier and requires less financial resources than looking for new customers. Therefore, offer quality products and services, as well as good customer service. This way, in addition to buying from you again, your customers may recommend you to their friends and family.

Increasing the average ticket
It is also possible to increase your company's revenue by increasing the average ticket, which is the average value of purchases made by customers. Product promotions can help you increase the value of purchases. Using the previous example, a product in your company costs R$50. If you offer 3 products for R$40, you will lose R$10 on each product, but the sale will end up being R$120, instead of R$50.

Following this logic, you can also offer product kits, service upgrades or even upselling, a technique of offering the customer a more complete, improved and better value version of a product or service.

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Points that may be interfering with the company's revenue
In addition to investing in ways to increase the company's revenue, it is essential to look for areas for improvement that may be directly affecting your profits.

They are:

Poorly trained sales and service team: a team that is not prepared to provide good service, identify customer pain points, lack sales persuasion and other important issues in customer conversion and loyalty will cause the company to lose revenue.
Wrong pricing: Your billing problem may be related to the wrong pricing of your products or services. Check out 7 pricing strategies to sell more here.
Lack of technology and innovation: digital transformation in companies is essential to remain relevant, stand out from the competition and maintain customer loyalty.
Little knowledge of the customer: if you want to sell more, you need to know your customer in depth, their needs, pains and desires.