Where Do Revenue and Loyalty Intersect In Your Business?
Think about the level of your company’s revenue and then think about how secure or recurring that revenue is. These are the two factors that every business must frequently measure in order to 1) stay in business and then 2) grow the business. A business that isn’t growing, is dying.
If your business falls in the low revenue/low security quadrant it’s crunch time: be bold, or you’ll be out of business. Start with a single bold new offering and then make it available to everyone. Market this one offering like crazy and provide outstanding customer service. You have to build both revenue and security at the same time.
If your business falls in the low revenue/high security quadrant, first figure out why they are loyal to you. Then dig deep into what you know about them and create new higher value offerings that they will love. The high value will command a higher price, increasing your revenue. Don’t be afraid of losing a few. Focus on those who want the best you have to offer.
If your business falls into the low security/high revenue quadrant you must first look closely at the causes of the low security. Is it poor customer service; limited choices; a high-priced necessity so you haven’t bothered to cultivate loyalty? You can address the revenue insecurity from several angles at once to increase loyalty without decreasing revenue.
If your business falls into the high revenue/high security quadrant take a moment to celebrate–and then get to work building on your strengths. Build your revenue by adding intangible value such as convenience, prestige, or access to you. For some buyers there is no ceiling to the price they’ll pay as long as they perceive the value is growing. Increase loyalty by asking your already loyal buyers what else they want-and then delivering it to them in spades. Keep meticulous records about the preferences and choices of your most loyal buyers and use those records to increase revenue and security.
Assessing your company on the Revenue Matrix is the single best action you can take today to get a new buyer or create a new offering tomorrow.