It is common for entrepreneurs and business owners to get so caught up in the day-to-day tasks of running their businesses that they often forget to take a step back and evaluate what is working and what isn’t – and how that can be translated into their company’s broader marketing efforts. Whether small e-commerce sites or major multinational businesses, most businesses have a few products or service offerings that generate the bulk of their revenue. Companies need to take steps to identify these revenue streams and develop strategies to marketing to them. So, how can you market to your main sources of revenue? When developing and implementing your marketing strategy, be sure to keep the following principles in mind.
Monitor What Products and Services Are Bringing in the Most Revenue
The first step is to identify which products and services are bringing in the most revenue. Believe it or not, the vast majority of businesses out there actually derive about 80 percent of their profits from roughly 20 percent of their products and services. In other words, not all of a company’s offerings are created equally – some are much more successful than others at driving revenue. For example, let’s say an apparel store in New York City sells a wide variety of men’s apparel and brings in roughly $100,000 per year. It’s easy to assume that all apparel offerings are pulling in that revenue, but if the store were to carefully analyze its sale, it would likely find that one particular type of clothing – such as jackets – are driving the majority of their sales. This principle holds true across sectors, even when considering different sizes of companies.
“Successful companies frequently depend on just one product for a large share of their sales. That’s true for some of the most iconic brands, including Coca-Cola, Marlboro, Jack Daniels, and Apple,” Thomas C. Frohlich and Alexander E.M. Hess explained in TIME. “In many cases, these products not only represent an outsized share of their company’s revenue, but they also have tremendous profit margins that serve as the foundation of the company’s profitability.”
By identifying what products bring in most of your brand’s revenue, you can drive success. Because most of your target audience is interested in these products or services, by marketing to them, you can drive sales and improve brand visibility. However, keep in mind that revenue streams may fluctuate as consumer demand changes, so you will want to monitor revenue streams on a regular basis and make adjustments to your marketing strategy as necessary.
Incorporate Revenue-Driving Products and Services in Your Marketing
Next, you need to align your marketing strategy with the information you’ve gathered. Let’s return to that example of that retail store in New York City. Let’s say the store analyzes its revenue streams and finds that about 80 percent of its revenue is coming from jacket sales. In that case, the store should feed this information into its marketing strategy, by, for example, focusing its website more heavily on jacket offerings and working to rank for keywords related to jackets. When a company doesn’t understand where its revenue is coming from, it can’t properly target its marketing efforts.
Therefore, in order to maximize your investments and drive sales, you should strategically incorporate revenue-driving products and services into your marketing, from email marketing to social media marketing to SEO. This means optimizing content with keywords aligned to your best selling products and services and prominently featuring your products and services in things like ad content and social media content.
At 10twelve, for example, we make sure that the services that drive the majority of our revenue are prominently displayed on our website, such as web design and social media. When customers visit our site, we want to ensure that they encounter what they are most likely to be looking for right off of the bat so that we can maximize our revenue.
In conclusion, aligning your main sources of revenue to your marketing strategy is an excellent way to expand and grow your business, helping you to get the most out of marketing and drive more sales. Contact the experts at 10twelve today!