Archive for August, 2010
To grow any enterprise, you must continually seek ways to turbo charge it’s engine. You must develop strategies that will drive sales to ever-higher levels while ensuring that your growth in revenues translates into higher cash flow and profits. Essentially there are seven ways to increase revenues. Mastering any one of the seven will produce significant results. Success in all seven will lead to dramatic growth.
Make More Sales
The first and perhaps most obvious way to increase revenues is simply to make more sales. Of course, one of the best ways to accomplish this objective is by expanding your customer base. If you own a restaurant, how can you attract more patrons? If your business supplies parts to OEM’s, what strategy will allow you to sell to a greater number of manufacturers? If you run a print shop, what steps can you take to bring more customers in the door? What new strategies will allow you to attract more customers?
Sell More Often to Existing Customers
In addition to expanding your customer base, you can also make more sales by selling more often to the same customer. Customer acquisition costs can be enormous. Once you have developed a customer, look for ways to increase the number of times you sell to him in any given period. In addition to increasing your sales revenues, such sales will also be more profitable.
PORTLAND, OR–(eBizine)–8/19/2010-7:30 AM - eBrand Media, Inc. (EBM), a leading provider of digital advertising and marketing solutions to emerging and established businesses announced today that its agency division, eBrand Interactive, will manage a pivotal marketing channel for Ocusafe, LLC.
“Ocusafe recognizes that eBrand Interactive offers sophisticated, metrics-driven marketing solutions. We utilize highly evolved, next generation technologies, guided by marketing maestros, each with a minimum of 5 years of experience, to cut marketing costs while increasing website conversion rates, revenue, and return on ad spend”, Tom Polanski, EVP of Sales and Client Development at eBrand Media, was quoted as saying.
“We anticipate that we’ll be able to dramatically increase this partners sales revenue on the same marketing budget or even less for this client”, Mr. Polanski continued. “We’ll build a movement towards this brand”, he concluded.
Although they compete with giant CPG companies, the marketers at Annie’s Homegrown don’t have a TV, radio, or print ad budget. Instead, over the past 12 months, they’ve focused efforts on the Web for — brand building. (That’s right, not direct response.) It worked, revenues are up 25% and Wal-Mart is about to start carrying Annie’s.
Here’s what the Web team did:
Organic shelf-stable foods are one of the hottest categories in supermarkets these days — industry sales are growing by 20% per year.
Naturally (pun intended) this is thrilling for the folks at Annie’s Homegrown. The brand’s been beloved in the organic world for years, but more recently has made significant headways in mainstream supermarket chains.
But, bigger CPGs and supermarket house brands are also hopping on the organic bandwagon these days. Suddenly Annie’s marketing team were outgunned in terms of staff and budget in the very market they pioneered.
“Our brand is invaluable,” says Annie’s Web Marketing Manager Mark Berger. “We’re basically just macaroni makers, but with the brand we’re really so much more than that. That’s what people identify with.”
Although only 1% of Annie’s sales are direct ecommerce from the site (mainly to bulk buyers such as day care centers), the team decided to invest significant energy to revving up the brand’s Web presence over the past 12 months. However, the purpose was not to increase ecommerce sales.
Instead Berger’s online goal was almost entirely brand building. Could he use the site to grow a community of consumer excitement for a brand that was suddenly under heavy competition from me-too products on supermarket shelves?
According to The Consumer Reports Index for July, by the Consumer Reports National Research Center, the economy is showing broad improvements in the condition, behavior and expectations of consumers. Though showing improvement, problems remain, including the proportion 16% of Americans that were unable to afford medical bill or medications, or 8.9% who have lost or have reduced health care coverage, well above levels seen in 2009. A worrisome development is a rise in Americans’ homes going into foreclosure in the past 30 days.
The Consumer Reports Employment Index numbers show job creation increased to 51.1, its highest level since April 2009. The Employment Index has pointed to employment growth in three of the last four months. In July 7.8% of Americans started a new job versus 5.7% that lost their job.
Consumer spending across index categories rose in July, particularly in the area of personal electronics and major home appliances. Per capita retail spending was up slightly for July ($274), reflecting June activity, from the prior month ($234).