Achieve Your Revenue Goals: The First Step Is Understanding Where You Are Now
Revenue and transaction trends identify your company’s sales patterns over the prior twelve month period. Recognizing these patterns and what activities lead to growth is a critical step in making the right decisions for your company. Understanding your company’s revenue analytics and trends will help you answer the following key questions
- Who should you target for marketing initiatives?
- Which products or services should you focus on?
- What customer and prospects should your salespeople spend time contacting?
How to meet your revenue goals
Trends for transactions and customer retention are the primary drivers of revenue, because they explain exactly what is happening in your business. They also tell you where your sales team and marketing efforts should focus to engage your customers and keep them coming back consistently.
Here’s an example. For one company, new customers during the past 12 months make up 51% of their customers. Here’s how these customers evolve over time, if they keep buying from the company:
Average transactions
Year 1: 3
Year 2: 13
Year 3: 18
Average revenue
Year 1: $39,099
Year 2: $154,537
Year 3: $178,789
What these revenue analytics show is that customers purchase more from you and are more valuable to you the longer they work with you. For this reason, retaining new customers over the long term has a huge impact on meeting your revenue goals.
Take advantage of revenue trends
For most companies, each year they keep a customer buying from them, that customer increases the number of purchases and how much they spend. One of the most critical aspects of reaching your revenue goals consistently is to ensure customer retention. Below are some strategies for retaining your customers:
- Consistent engagement – Send several targeted emails every month to your customers, reminding them of the products and services you offer, establishing yourself as an expert in your field, and encouraging them to purchase.
- Targeted approach – Look at your customer purchase data to anticipate what they may need or when they might be getting low on a product. Then send out an email or make a sales call that is specific to that customer’s needs.
- Collect and respond to feedback – Implement customer satisfaction surveys to gain insights into how customers feel about your company and how well you provide for their needs. You’ll learn about issues and problems and have the chance to solve them before a customer leaves you. Effective customer satisfaction surveys can boost retention by 20% – 30%.
Stay on top of your customers with emails, sales calls, and surveys to ensure they continue working with you and that you reach and exceed your revenue goals.
Understand your revenue analytics with Zintoro
By knowing which customer segments and which products produce the most value for your company, you can better target your sales team and marketing efforts. Focus on retaining your current customers, and highlight the products that generate the most revenue. That means that your sales people should be reaching out to at risk customers, encouraging them to stay, and your marketing people should be putting the most resources behind your frequently bought products and services. Zintoro’s analytics portal shows you exactly which customers should be called when and which products should be promoted.
If you want to understand your revenue analytics and implement tried and proven strategies to exceed your revenue goals, contact Zintoro today for a demo.