8 Things to Test in Your Business in 2021 to Generate More Revenue
By Ron Stefanski
2020 has been a hard year for most marketers. The global health crisis has presented a lot of new challenges, forcing many businesses to rethink their marketing and lead generation strategies in order to endure.
Now that we are entering the new year, it’s time to focus on more effective ways to create consistent sales. This article looks at 8 things to test in 2021 to generate more revenue.
Increasing Your Revenue Through Testing
There are many things you can do to increase your business as revenue, such as
- Boosting your marketing and sales efforts
- Focusing on improving customer experience
- Reviewing pricing strategies
- Expanding your market
- …and so on.
But, one of the absolute best things you can do to increase your revenue is to test and experiment with new systems or those your business already has in place to find what works best for your business.
Testing is a great way to uncover hidden revenue opportunities.
For example, Amazon experienced a 90% increase in revenue just from testing and optimizing promo code placement.
You can test every aspect of your business, such as the checkout page, webpage designs, emails, and so on to find the versions with the best conversions. You can then launch the winning designs to make your marketing more effective, and ultimately generate more revenue.
Ideally before we even begin the new year, you should work with your team to create a roadmap that helps steer the direction of the organization in the coming year. It’s great to do this now as you can look at things from a different perspective because you won’t be in the midst of the priorities themselves.
How To Increase Revenue For Your Business in 2021
Below, we take a look at some essential strategies to help you increase profits and boost your business’s bottom line in the coming year, regardless of your budget.
1. Diversify Revenue Streams
The digital scene continues to change at an alarming pace. For companies to survive and thrive, they can no longer rely on just one source of revenue.
Instead of putting all your eggs in one basket, you must explore various income streams to help mitigate risk. One way to do this is by strengthening your customer base.
When diversifying revenue streams, you can start by prioritizing adding more customers and clients to your roaster.
Also, diversify the way existing customers engage with you in order to deepen engagement. For instance, YouTube can be a great revenue stream if utilized correctly.
Find ways to offer additional value to users, such as through access to gated or premium content on your website, monthly or annual product/services subscriptions, webinar sign-ups, exclusive membership site content, and so on.
2. Make Data-Driven Decisions
Companies today have access to tons of data pertaining to every aspect of their business. Unfortunately, the majority fail to make use of this information and allow it to degrade over time. But, used properly, data can help you make better-informed decisions to fuel business growth.
Leveraging the data at your disposal will allow you to enjoy the following benefits:
- Reduce business costs
- Gain a competitive advantage
- Increase profits for your blog
By looking at your data, you can see what’s working in your business and what isn’t. You have a clear picture of current and past trends and the ability to analyze them so you can make decisions for the future based on more than just gut feelings, experience, or opinion.
As evidenced by the image below, the majority of marketers use data as a powerful tool in their marketing.
3. A/B Test Key Areas of Your Website
A/B testing key areas of your site is vital for improving conversion rates. With the right tools, and used continuously and consistently, A/B testing can help you improve your overall user experience and boost your conversions over time.
In fact, A/B testing can actually do a lot more than merely proving how changing different elements can impact conversions.
It also helps you prioritize what needs to be done in the future. For instance, if your product roadmap has 15 items, and you need a definitive answer for what will bring improved results, you can use your data to determine if there is a feature that is similar to another feature that either worked or didn’t work in the past.
You can also try painted door A/B testing, where you test a link or button to a feature that doesn’t exist yet, to gauge if your users are interested in it.
For example, before building new games, the team at classic gaming site Solitaired tests links to those games in their navigation. When users click on a link to a new solitaire game, they have a messaging that explains it’s coming soon, while at the same time collecting data on the number of clicks.
You can then decide whether or not to move forward with it based on the information you have.
4. Create or Refine Your Upsells
Another way to immediately increase your revenue is to add upsells, add-ons, secondary products, and complementary services to your sales funnel.
When you already provide value to your customers and have earned their trust, you can boost your revenue by simply finding more ways to serve them.
By doing so, you immediately increase two things:
1. The frequency of purchases; and
2. The average transaction size.
The upselling strategy works effectively because if your customers can achieve more satisfaction and better results using a higher-end product or service, they will be happy to pay more.
To use this strategy effectively in your own business, you must assess your customers’ needs and match them to the product or service that will offer them an optimal buying experience.
5. Improve Your Email Strategy
Although it’s been around for a very long time, email remains one of the easiest and most affordable ways to market your products or ideas. It has the highest ROI rating compared to all other marketing channels.
That said, it’s important for you to consider using a reliable email marketing tool to create a comprehensive email strategy that will help you achieve your revenue generation goals. It’s also important to test your email campaigns so you can find out what works best for your business and market.
Here are some of the things to test so you can improve your email strategy:
Rendering of Email Body: Make sure email looks right with different email clients, such as Yahoo, Gmail, and Outlook.
Rendering of Images: Some email clients block images and may even filter and send them to the spam folder. You must test this to find out how your images show up across various clients.
Emails on Mobile: Sometimes emails look different when viewed on a desktop than they do over a tablet or mobile, so preview emails in mobile version before hitting send.
Subject Lines: Your subject lines can have a huge impact on your email open rates so it’s important to test different subject lines and go with the best-performing ones.
Send Date and Time: This is yet another important element test so you can find the optimal times when your emails will get the most engagement.
6. Bundle Your Products or Services
Bundling is all about packaging complementary products or services together in an effort to increase revenue.
For instance, if your business sells funny t-shirts or single origin coffee beans through Shopify, you might consider adding a car decal or a water bottle with the purchase to give higher perceived value.
Or, if you sell online courses you may want to consider utilizing course licensing to other organizations or bundling them for the consumer market.
This makes buying easy for customers and helps them save time. Also, by creating a more “complete” solution for them, you make it more likely that customers will buy more than they would have otherwise.
This is a great strategy that can help you increase your revenue, but it’s important to test it out so you can find out which product/service combinations are best for your customers.
7. Increase Referrals
A customer referral is when a person in your network recommends your product or service to a new prospect.
Customer referrals can occur spontaneously during conversations, or they can happen as a result of conscious promotion where a business incentivizes existing customers to introduce new customers.
There are many ways to get business referrals, and as with most other marketing tactics, you need to test different methods to find the best strategy to acquire referrals for your particular business.
Here are some ways to increase referrals:
Delight Customers:All of your customer experience strategy, in a nutshell, could mean making your customers happy. When you exceed your customers’ expectations, they will rave about your business to anyone who will listen..
Act on Feedback: Whenever you receive feedback from your customers, you must act on it. When customers see you implementing their suggestions and sharing their content on your blog, in emails, and on social media, it lets them know that you value the opinions – and this opens up even more opportunities for positive responses and more referrals.
Distribute Shareable Content: Create high-quality content and resources such as blog posts, infographics, emails, white papers, e-books, etc., and include a referral “Share with a Friend” link so your audience can pass along the resources to qualified connections. This is an easy way to boost your referrals while providing your audience with value. You can also use social media management tools like Sendible for best results on sharing and creating interactive content on social media.
8. Cater to Your Top Buyers
Marketing can be expensive, but you can mitigate this expense by identifying and catering to your top buyers. You can do this by implementing a frequent buyer program or volume discounts. This will help you significantly increase revenue from your existing customers.
Offering frequent or volume buyer discounts encourages your top buyers to not only purchase more of your product or services but also to purchase more frequently.
Reward them with things like discounts, incentives, and extra levels of services. Since you are maximizing cash flow, you have the ability to reward them with some extra perks.
Great examples of this strategy in action are the “frequent buyer” programs you see in airlines, or coffee shops that offer free products after a certain number of purchases.
Remember to test any discount program you implement to discover the best and most profitable incentives for your top buyers.
Pro tip – Apart from using discount programs and other incentives to get your top buyers to purchase more, you can also trade the incentives for product reviews. By getting more positive reviews from your current clients, you will be able to build trust with the potential buyers as well.
These are just 8 of the things you can test in 2021 to help you generate more revenue for your business. You don’t have to implement them all at the same time, but whichever you choose, don’t forget that testing is key. It will help you to avoid unnecessary risks and increase your marketing ROI in both the short term and over time.
Which of the strategies outlined above appeals to you the most? Share your thoughts in the comments below!