Increased revenue is the ultimate pot of gold, but finding it can feel like looking for treasure without a map.
Add in some bad weather — in the form of global events and inflation — and you could lose hope of ever getting your cash on track.
Disheartening as this challenge can be, what if we told you there is a map of sorts? It lies hidden in the vast sea of data you have about your business, some of which you may not have analyzed yet.
At a glance, data might seem like a jumble of numbers, graphs and percentages, but it’s so much more. In fact, it’s the pulse of your business.
Good data is a record of the past, a snapshot of the present and a predictor of the future.
Clicks, conversions, sales, client satisfaction ratings, team utilization rates and other KPIs can be strong guides if you reference them before making big decisions.
Before chasing new clients or venturing into uncharted services, take a good look at your data. It holds secrets about low-hanging fruit: opportunities to boost your revenue quickly by optimizing, innovating and expanding in thoughtful ways.
Diving into numbers can feel overwhelming, especially if they’re sprouting from various sources. Start by honing in on the following three buckets of data.
Track your client’s journey from initial contact to payment — and, ideally, retainer renewal. Are there specific touchpoints where they’d be most likely to purchase add-ons? Or perhaps a pattern where they drop off or often downgrade? Understanding these nuances can help you tweak your strategies for retention and upselling.
Not all services are created equal. Some might consistently rake in profits, while others are just breaking even. Dive into the profit-related metrics of each offering. If a high-profit service is lagging in sales, it’s time to reposition or repackage it for better visibility.
Are there specific tasks or processes that are draining your resources without proportional returns? Analyze operational data to spotlight these inefficiencies. Streamlining processes, performance monitoring, time tracking and other key operational elements could free up time for more revenue-generating tasks.
As you zoom in, you’ll want to think about some individual metrics that are particularly meaningful in telling the story about your business’s revenue. They can reveal some opportunities you may not have seen before.
With your concrete insights in hand, it’s time to set out on your journey to the treasure. This is when the real work begins.
First, identify which data points offer room for change with minimal effort and noticeable impact potential. If your sales conversion rate is suffering, you might tweak a sales script. If your LTV is lower than your CAC, maybe it’s time to repackage a service bundle. And if CAC is exorbitant, it could be smart to reroute some ad budget into more cost-effective channels.
After initiating small changes to encourage quick wins, you’ll need to develop a structured revenue roadmap. It could take some time to create a plan for upselling, initiate a rebrand, iterate on new workshops or events or conduct surveys to find out what your clients want.
These are only examples of the many cash-boosting possibilities out there. Instead of comparing your business to the competition, derive your next move from what you know to be true — what your data is telling you. Use it as your North Star and the path will seem far less daunting.
Running an agency? Our latest guide combines short- and long-term strategies for expanding revenue.