While there are many ways to make your business more attractive to consumers, money talks, and everyone is trying to find ways to save money and increase their income. Developing a stable revenue stream is essential.
In this article, we explore how to attain financial resilience. We also look at corporate philanthropy and how it can help you improve your brand awareness and reputation, as well as boost sales.
How to Develop a Stable Revenue Stream
With the cost of living and doing business escalating at a phenomenal rate, we wanted to consider how you can boost and stabilise your revenue streams.
Common guidance includes enhancing customer experience through:
- good and honest communication
- delivering the personal touch
- ensuring effective problem solving
- always going the extra mile
Customers are consistently demonstrating their appreciation of effective client relations. However, there are other actions you can take to give you greater financial resilience, such as providing:
- introductory discount offers
- reduced fees for long-term commitments
- itemised fees and services
- reward schemes for custom and referrals
EVERYONE is looking for ways to make a saving, including, of course, your customers. So give it to them, but in a way that cements their relationship with you.
These options are also nothing new but are common because they work.
You just need to figure out how to apply them best to your business model. And remember we can help you there!
Service Business
If your business offers a service, look at how you can give it structure. Can you itemise your services, offering individual and packaged solutions?
Individual services will cost more for you and your customers but must remain an option.
Remember to detail everything your customers get, so they understand the value. It may seem just part of the job to you, but this is not their discipline. Never take for granted any aspect of your service.
Once your service structure is in place, focus on getting clients to sign up for a fixed duration. And remember, you need to make the saving attractive enough to convince them that it’s worth their initial outlay.
Then consider how you can reward them for their custom. Can you offer further discounts or special services for their continued patronage?
Product Business
If your business offers a product, look at what supplementary products or repeat purchases you provide and develop a support package for your customers. Again try and encourage your customers to sign up for subscriptions.
Payment Options
Paying for a service or product in increments is hugely attractive. Make sure you offer a monthly payment plan wherever you can. People will be willing to pay more for the benefit of instalments over an annual fee. And the advantage for you is a regular, forecast income.
Contracts and Exit Fees
Whether you decide to tie your customers into a contract or apply financial penalties for early exit is down to you. However, refraining from stipulating exit fees or contract durations for instalment plans may encourage your customers to sign up in the first place and return when their finances permit. This will not be applicable to all business models but is a consideration for many.
Know Your Customer
Your offerings have to be of value. Customers are naturally being much more selective over how they spend their money. Market research can help you here. Don’t be afraid to engage with your customers and ask them what they want.
Always consider – what is the problem you can solve for your customer?
The Gold Club
Lastly, consider a ‘hierarchy of membership’ to your business. Can you deliver a gold standard service, product or response to customers if they choose to purchase it?
You may decide that your company wants to offer the same level of excellence to all its customers, which is admirable. However, this could be an excellent option for your business model, and there will always be a faction of consumers who want more and are willing to pay for it.
Corporate Philanthropy
Corporate philanthropy makes a statement about your business. You are announcing your desire to promote the welfare of others. It’s a win-win for your business and society.
Current statistics report that:
- 64 per cent of consumers would buy from a brand or boycott it solely because of its position on a social or political issue
- 77 per cent of consumers buy from brands that share the same values as them
Corporate philanthropy has shown to:
- increase employee engagement and productivity
- improve brand awareness and reputation
- attract top talent
- increase sales
Using Corporate Philanthropy to Increase Sales
This is about telling your customers what you stand for. Make sure you publicise your efforts. Consumers have already had their vote, and they want businesses that care.
You can also offer your customers the opportunity to get involved. Announce a product run or percentage of fees for a service you are donating to a topical or local cause, and ask them to support your efforts.
Corporate Philanthropy and Tax Reductions
Businesses that undertake charitable giving typically receive tax deductions. However, it is vital that you accurately track and record your donations. For any business considering corporate philanthropy, we strongly recommend seeking advice from a finance professional to ensure compliance with all tax requirements.
You can find out more about methods of corporate philanthropy here for tax-efficient strategies that ensure your giving has the most significant impact.