Customers are the lifeblood of any company and revenue generated is one of the factors that determines the decisions taken by a company to run its activities.
As the world economy recovers from the effects of the COVID 19 pandemic, revenue growth and customer acquisition remain the focus of many companies.
What is Revenue Growth?
Revenue growth can be referred to as an increase in revenue over a period.
Revenue growth rate is often measured as a percentage and calculated by comparing the previous period's revenue with the current period's revenue. For example, if a company’s revenue grows from 100,000 to 200,000, it has a 100% revenue growth, i.e. ((200,000 - 100,000)/100,000) × 100.
Each period measured should be equivalent to the period it is being compared to i.e., compare last month with this month or last year with this year.
Revenue Generation
According to research, a focus on customer centricity and acquisition leads to increased revenue growth. In today’s business landscape, there are various methods through which companies generate the revenue needed to run their business. Some of them include:
Acquiring new customers.
Increase sales of existing customers.
Selling in a new market or a segment of current market.
Utilise technology in their business to promote sales.
Invest in their employees by motivating them because if a disgruntled employee reduces the productivity of a company thereby reducing revenue generation.
What Is Customer Acquisition?
Customer acquisition refers to the process of bringing on new customers and converting existing prospects into paying customers for your company or the process of enrolling new customers and converting existing prospects into customers. Customer acquisition appears to be like marketing, however where marketing attempts to increase awareness of a company’s product or brand, customer acquisition strives to increase activity, which leads to sales. To put it simply, customer acquisition is one of the main strategies for driving revenue.
Customer Acquisition Acceleration
Getting new clients is never simple, but with the correct strategies in place from the start, it can be a breeze. We have earlier created a link between revenue growth and customer acquisition and identified customer acquisition as one of the strategies for accelerating revenue growth. Below is a list of some innovative techniques that can be used to speed up customer acquisition.
Content marketing - Content marketing helps in enlightening consumers on the benefits, solutions, and value proposition that your brand/product has in it for them. In the face of competition, this content differentiates you from the rest. It is always effective if it has sufficient value to offer to the consumers, fill a gap in the market, or solve an existing problem.
Embrace social media - Social media has grown tremendously in the past decade and is considered a powerful tool for customer acquisition. It provides a platform to get relevant first-hand information of behaviour and interest of potential customers and existing customers while increasing brand awareness. Always ensure that your social media activities are transparent, genuine, and verifiable. In an era where conceit and lies are dominating in social media space, it pays to invest in promoting building trust among your audience.
Search Engine Optimisation (SEO) - 61% of Internet users do some research on a brand or product online before they make a purchase. Learning how these search engines work and applying the same to your ecommerce platform will help increase your chances of converting visitors to buying customers.
Customer retention through deals, promotions, and incentive referrals - it helps you keep the existing customers for guaranteed business and uses your existing customers to acquire new ones. It has been noticed that customers respond positively to deals and offers like giveaways, discounts etc. In addition, your existing customers are your network which you can use to your advantage.
In summary, revenue growth and customer acquisition are intertwined with each other so for a company to experience revenue growth they need to be a conscious effort by the company to increase customer acquisition. No matter the strategy used in customer acquisition, always prioritise providing value over selling.
Email us at: enquiries@ovacgroup.com for a free consultation with our team specialists.