If you’re like every other business owner in the nation, you’re likely looking for ways to grow your revenue and increase your cash flow. There isn’t an exact formula for increasing revenue, but some causes that factor in include your pricing point, level of customer satisfaction, cost of customer acquisition, and the effectiveness of your marketing and advertising campaigns.
The level of customer satisfaction, or customer success, is what we’ll focus on here.
HelpScout, a software provider that seeks to help companies offer better customer support and metrics, says that increasing revenue is really just a byproduct of how successful customers are using your product. If your customers are finding it easy to use, efficient, and cost-effective, your revenue will go up.
Conversely, if customers find your product or service difficult to use, inefficient, and costly or not worth the price – i.e., they don’t have success using your product – your revenue will go down. How can you ensure you’re working toward customer success and increasing revenue?
Increasing Revenue is a Byproduct of Customer Success
Increasing revenue starts with making the customers’ perception your perception, not with upselling. What the customer wants and needs to be successful using your product should be at the forefront of every plan, strategy, and technique you employ, not profit.
As HelpScout noted in their post about upselling, focusing on the upsell is a classic mistake companies make when trying to increase revenue.
A business owner might say, “If we need to make more money, we’ll try to sell more higher-priced stuff to the people we already have interested in our products!” That’s not considering how it will come off to the customer, though. Instead of trusting the company and knowing they’re getting what they need, customers are suspicious and alienated from companies that are known to try to upsell every customer. They have their guard up, so to speak.
That doesn’t bode well for increasing revenue.
Turning free-mium plans into revenue
No matter what your pricing structure is, every customer’s success has to be considered – even those using free or trial versions of your product. The level of their satisfaction and success using your product is what’s important for increasing revenue, not the price of subscription or adoption itself.
You might make more revenue short-term if you prize profit over customer success, but real change occurs when legions of people that have successfully used your product become brand ambassadors that recommend and encourage others to use it. That doesn’t happen when you’re putting profit first. It happens when you put the customer and their success first.
If you want to increase revenue while offering a ‘freemium’ plan, you don’t have to change your plan offerings. Keep them as they’ve been, but place a new focus on helping your customers be successful using your product. You’ll create value for your customers before you even ask them to make a real purchase, and they’ll be much more likely to do so when they have already seen how your product or service positively affects their business.
Ensuring your customers experience success with your product means offering amazing customer service and support. If you’re ready to kick your service up a notch, check out our virtual receptionist plans to have a professional receptionist answer your calls and manage your appointments!