How can platform merchants boost their revenue during low sales cycles?
Synopsis: In today’s blog, we will learn about some of the best ways for platform merchants to increase their revenue, particularly during a low sales cycle.
All business owners looking to expand strategically aspire to boost their sales and revenue, and platform merchants are no exception. With over 60-75% of the sales happening during the peak festive season, maintaining first-rate and sustainable financial health throughout the year can be tedious.
So, what steps can platform sellers follow to improve their sales during the off-season? We elaborate on them below.
7 tips for platform merchants to boost their revenue during the lean season
The golden rule to growing your bottom line, i.e., profitability, is to develop your top line, also called revenue. It means that the majority of the consumers who land on or visit the platform should ultimately buy from your business.
While converting customers is easier during the holiday season due to diverse discount offerings, maintaining this momentum can be a hard endeavor during the lean season. Below, we mention some of the best ways to boost your revenue cycles during the low sales cycles.
1. Cut down on repetitive admin work
According to a study, a salesperson, on average, spends only 37% of their time on selling activities. This means over two-thirds of their time is spent carrying out menial, low-value, repetitive tasks!
So, one way to raise revenues is to boost the time spent on generating leads and pursuing customers. Hence, start by outsourcing regular admin tasks such as scheduling and data entry to enable your sales rep to focus on improving sales efficiency.
Alternatively, you can also use customer relationship management (CRM) software that consolidates all sales cycles’ touchpoints in one place.
2. Incentivize with contests and promotions
Lately, many platform merchants have hopped on the bandwagon to create mini-sale events throughout the year.
For instance, payday sales at the beginning of the month, or special discounts on certain products and brand offerings. This not only goes a long way in keeping your brand up and center in front of the customer but it can also induce them to buy more, instead of waiting around for big season sales towards the year’s end.
You can also experiment with flash sales, limited-time deals, and free shipping over a minimum cart value. However, it’s best not to go overboard with discounts, as it results in degradation in a brand’s value, affecting revenues over the long term.
3. Rework platform’s content
Low sales cycles serve as the best time to rework and refresh your site’s content. Update the product description and visuals, which will enable customers to quickly find the items they are looking for. Add compelling titles and end-uses.
You can also create seasonal pop-ups on your website without using up too much of your budget. For instance, popups like products for hot summers or dry winters are a great way to attract customer interest all year round.
You can also add educational blogs that are search-optimized to ensure your platform features in the top search results while keeping it fresh and relevant. It will go a long way in boosting your revenues, no matter the season.
4. Upsell and bundle products
Another effective way to boost revenues is to bundle the products together. To illustrate, once a customer looking for V-day gift ideas lands on your website, induce them to buy by offering products in pairs.
Some platform sellers may find it useful to club together complementary goods to their existing product offerings, like tableware with dining chairs or cushions with sofas.
To get a better idea, analyze the search trends to understand customers’ preferences, plan the items that can be bundled together, and offer similar items in conjunction.
Conversely, you can also upsell by displaying an advanced version of your product to incentivize customers to pay more for better features.
5. Lower cart abandonment
One of the thumping issues platform sellers face is card abandonment at the checkout stage. A whopping 86% of mobile users and 70% of desktop users end up abandoning their carts, thus resulting in unfulfilled orders and revenues amounting to $18 billion annually.
While some drop off at the consideration stage, as they are probably indulging in comparison shopping, many choose to not go ahead due to issues with shipping, convenience fees, or discount coupons.
Hence, eCommerce sellers must optimize their websites by creating exit pop-ups that offer additional offers or loyalty points to entice a customer to purchase. Furthermore, email reminders can be sent about items remaining in the cart. This can result in additional conversions spiking up to 35%, lifting the revenues significantly.
6. Focused Email marketing
Email marketing is a powerful tool for re-engaging past customers and encouraging repeat purchases. Platform merchants can use email campaigns to remind customers of their previously purchased products, promote new products, or offer special discounts.
Emails can be tailored per particular customer personas to increase their effectiveness in driving new sales. Similarly, personalized offers can be sent on the customer’s recorded birthdays or anniversaries for more sales.
Sellers can also experiment with newsletters, style guides, and how-to blogs to maintain constant contact with customers while pushing fresh and varied marketing messages for a revenue boost.
7. Expand into new markets and distribution channels
Another fantastic method for growing your revenues is to expand into new markets. Platform merchants should regularly audit their marketing strategies and stay on a constant lookout for more lucrative distribution avenues.
Stay on top of global marketing trends and capitalize on them. Utilize targeted advertising across several channels, such as social media, influencers, emails, broadcasting, and search engine optimization (SEO). To further your sales, you can even tweak your product offerings at little cost to make them more attractive to new customers.
Advocating for sustainability and recyclability can also improve your brand image and subsequently, your sales. With ESG and ethical buying becoming the new mantras, businesses must pay heed to these trends and market accordingly to gain more sales.
Increasing your business’ revenues may feel like a tall task during the lean season, but it doesn’t have to be so. By indulging in forward-thinking and innovative practices, you can boost your sales cycle and build a positive brand image. Train your employees to be better pitchers while following up with leads. Look for constant feedback and customize your product listings per buyers’ demands. Always remember to market effectively, as it will put you on the road to more customers, higher revenue, and substantial profits.