Profit Pipeline Strategies
Follow these tips to increase profits and grow your business.
Prioritize Your Leads
Classify your A, B and C leads in terms of the revenue they can produce. Each company needs large, medium and small clients. Always go after your large prospects first, but pursue small and medium clients simultaneously. Larger deals usually require more time and effort to close. In the interim, smaller customers can provide the cash flow you need to maintain and grow your business. The total gross revenue of your smaller clients may even be greater than that of your larger ones.
Pursue Profitable Industries
Do your research. Find out which industries have been labeled “recession-proof” and those that are growing in spite of the economy. There are numerous case studies available on this topic. A good indicator of growth is if an industry is hiring, rather than firing employees. Focus your business on these segments and make sure to diversify. If your products and services are tailored to a specific industry, try modifying or expanding your offerings. And, if your target audience has been negatively affected by the recession, find a way to market yourself to other segments.
Don’t Lower Your Prices
Price reduction is not an effective growth strategy. There will always be companies that offer the same services at lower prices. Instead, explain to clients what makes your offerings unique. Convince prospects that you can provide the best possible service in your market. Intelligent customers realize that they get what they pay for, so don’t rely on competitive pricing. Now more than ever, the key to closing a deal is quality and service. Make the customer feel like they’re getting more than they paid for, while charging all that your worth.