5 Ways Businesses Can Gain More Profit

Guest Post | Nov 1, 2021

Businesses exist, at least in part, to turn a profit. The pursuit of doing that more effectively has occupied the free market since its inception. But in today’s fast-paced and saturated world, it’s difficult to know where to turn for realistic ideas to increase your business’s revenue. Here are a few top strategies you can employ to propel your business’s bottom line.

Use Business Analytics to Drive Revenue

The amount of data available to businesses today far outweighs what has been available in any other period of history. The trick is channeling data, and its application, in effective ways to drive business growth. Businesses that apply data analytics to their processes can experience revenue gains in a number of ways. Applying descriptive analytics can help a business gain deeper insights into trends, patterns, and spending tendencies within their market. Collecting data on patrons or participants can inform tailored marketing campaigns and decrease spend per recruit or conversion. Studying external market trends can help businesses identify market gaps and predict new opportunities.

Analytics can be thought of in four distinct categories:

1. Diagnostic
2. Descriptive
3. Prescriptive
4. Predictive

Whether you are looking to incorporate analytics for the first time or to diversify and increase the way your business employs analytics, there are ways to find ample ideas in each of those categories for getting more out of data analytics practice within your business.

Analyze Current Business Practices to Mitigate Costs

One particular method of applying analytics to business practice is by using “diagnostic” analytics to better understand current business practice and identify areas where costs can be minimized through improving processes.

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Applying diagnostic analytics to your business doesn’t require expensive software packages to employ. Unlike other forms of analytics, this particular strategy can be implemented in simple, low-tech ways. Performing diagnostic analytics can be as straightforward as organizing a roundtable meeting with your floor managers; taking a day away from your desk to learn from your manufacturing staff; or taking notes for a week on a particular aspect of normal processes to see what you can glean by way of inefficiencies and ways to mitigate or remove them.

Supply Chain Pandemic Shortages & Management for Business Growth

The strength and health of a business’s supply chain is often overlooked, but has significant implications for a business’s profit and growth capabilities. Defined as “the network and relationships required to make and deliver goods and services,” your business’s supply chain (and its quality or lack thereof) can impact customer service, operations, costs and cash flow, and more. Some best-practice techniques to improve your supply chain’s strength include the following:

1. Train all your personnel on supply chain understanding and management. Even though many of your departments or employees won’t deal with your supply chain directly, it’s important that each person in your organization understands how the supply chain affects their work.
2. Incorporate “Total Cost of Ownership” into your analysis. Until recently, most supply chains considered only the cost of product acquisition and didn’t factor in costs relating to storage, security, transportation, and more. Calculate your figures accurately by counting ALL costs.
3. Emphasize strong contract management for your supply chain team. Negotiating strong contracts with suppliers and other external entities in your supply chain can yield significant savings over time and lessen potential risks.

Of particular relevance in today’s post-pandemic economy is being aware of your supply chain’s strengths and weaknesses, and having strategies in place to combat unforeseen changes that could jeopardize any of its elements. Now more than ever, compromises to your business’s supply chain are possible that could cause significant loss in revenue. Take a hard look at the weak links in your supply chain and be proactive about developing strategies to minimize loss if anything goes wrong.

Create More Responsive Relationships with Consumers to Drive Retention

Marketing personalization and responsive customer relationship management are quickly becoming essential in many of today’s saturated markets. Developing strategies for connecting with your customers on a more personalized level can increase retention and boost lifetime customer value. Taking a more individual approach to marketing and customer engagement processes also allows your business to remain more in touch with their needs and preferences, get better feedback, and develop a stronger customer profile to inform your decision-making.

Nonfungible Tokens (NFTs): A New Tactic for Innovative Businesses & Nostalgia Prints

Nonfungible Tokens (NFTs) – the term sounds like something out of a space-age movie. However, NFTs represent an exploding craze that many envision may become a future normalcy across substantial realms of business and transaction. NFTs are “digital tokens — a unit of value built on top of an existing blockchain network.” Blockchain refers to a specific type of technology that acts as a “digital ledger of transactions.” Blockchain is also the technological foundation for cryptocurrency.

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NFTs are specific, unreplicatable digital assets. Just like pieces of art, they are verified and unique and can accrue value over time. Certain industries, like e-gaming and collectibles, are already embracing NFTs as an alternative to currency. Well-known celebrities and companies like Atari are beginning to release NFTs for sale or auction. While NFTs are in their beginning stages of adoption and development, companies interested in diversifying or attracting tech-savvy early adopters are already incorporating the creation, trading, and promotion of NFTs into their marketing and product strategies.

Ready to start increasing your business’s profit? There’s no magic formula. All you need to do is pick a strategy and test it out. Some may work better than others – that’s part of the process. Don’t worry too much about picking right the first time. Any of these strategies can affect your bottom line, and if one you try doesn’t make a meaningful difference, it will reveal ways to move forward and provide you with new insight.

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