Do you want to increase your revenue but are not sure where to start?
We get it.
We asked our Strategic Business Manager, James Brooker for his advice on how you can achieve exactly that. Keep reading for 6 actional tips and tricks you can use to increase revenue.
1. Increase revenue by switching from termly to monthly billing
Monthly billing vs termly billing. We could debate the pros and cons of both all day, but when it comes to revenue management, monthly is best. Parents prefer it too, we surveyed over 200 parents and found that 56% wanted monthly billing.
Now, we know that for some of you, that could mean more admin time, but that doesn’t need to be the case. You can automate invoicing, chasing late payments and more with LoveAdmin.
James explains, “Simplicity is key. Monthly billing gives both you and your parents consistency and will help future planning. It will make joining much easier on your parents with no big upfront sum and will line up with their other outgoings. Offering a mix of payment options focussed around the most popular will cement the feeling of having flexibility with the framework you set.
2. Increase revenue by communicating with parents
Whether it’s social media, SMS, email or something else, connecting with your customer is key. It’s a way to show you’re present and paying attention, while making yourself visible to potential new customers.
Where to start:
- Send reminders as soon as your customer has left you to offer a discount if they come back again
- You can send a reminder about abandoning checkout, if they leave your shop without checking out
- Send targeted comms at the times you know your customers will be making bookings. Such as school holidays, weekends and evenings
- Send notifications about merch/when new merch is in stock. We found that 73% of parents say they would be willing to buy branded merch. So, using comms to get the word out about your merch is a no brainer
James adds, “Proactive communication is vital to your success. When done well, it can make filling your classes and camps a breeze. The key for me is consistency, all of your communications should look similar, use a similar language style, and be sent out regularly. The worst communication is sporadic, not concise, and inconsistent.”
Do you want to explore what else you can achieve using customer comms? Find more resources here.
3. Increase revenue by building business partnerships
Finding ways to expand your reach beyond your current customer base can be tricky. That’s why partnerships are useful. Try talking to schools and nurseries in the surrounding area. They have access to a trusting audience who enjoy activities.
We also recommend reaching out to local businesses. There’s an opportunity for exposure there just like with schools and nurseries. Local businesses are often on the hunt for social projects to be a part of, why not offer the opportunity to sponsor scholarships as part of a hardship fund or for your next shining star?
James says, “Building partnerships in the local community is a fantastic way to build your profile and get a financial boost too. Opportunities to improve your reputation and your revenue are equally important, don’t choose one or other. Long term collaborations can be very successful if both parties are committed and can open up a whole world of opportunity.”
4. Increase revenue by using a referral scheme
Think about the last purchase you made. What made you decide to buy from that brand rather than another? Was it a recommendation from a friend? A review that stuck out?
74% of people say recommendations from individuals they know influence their purchasing decisions. This is why referrals can make such an impact on your revenue growth. Fortunately, it’s simple to create a referral scheme that works. Just make sure to incentivise it with rewards like discounts, mystery gifts, hampers and goodie bags. You can also try giving discounts to any parents who recommend another new parent and their child signs up.
James shares, “Trust is king. Your parents can be an army of free advertisers ready to promote your activities to new audiences. Offering incentives that add value, such as unique branded items or exclusive early access to an event is a great way of rewarding referrals, making parents actively go out and attract new people to join.”
5. Increase revenue by optimising your timetable
Did you know that your timetable could hold the key to growing revenue?
Analysing your timetable can help identify areas of focus for you and your team. From marketing and hiring new staff to deciding on new classes – reviewing your timetable should be a priority. It’ll also give you a better idea of where your money is coming in, so you know what areas are the most profitable.
Where to start?
- What is your class capacity looking like?
- What does your availability look like, and how about your staff?
- Should you be making any classes smaller or bigger to allow for demand?
By analysing things like capacity, availability and class size you’ll be better equipped to plan your new and improved timetable.
James explains, “A timetable is a living thing and should be tweaked on a regular basis to make sure it’s working for you. Don’t be fooled into thinking you don’t need to touch a full class. A full class means you have more demand for spaces than the spaces you have available, add more spaces to make sure prospective parents don’t look elsewhere if they can’t find the space they want.”
6. Increase revenue by improving your website
Having a website that your customers enjoy using may not always seem the most important. But did you know it can directly impact your revenue and customer retention?
In our recent report, we found that around 85% of parents expect an efficient online experience when it comes to booking, communication and seeing class availability.
What this means for you is that you need to make every part of the online customer experience easy – From the moment a parent visits your homepage to when they click checkout.
This may seem like quite a scary undertaking but fear not, there are two areas you can focus on first that will cover most of this. Start with your class timetable. It needs to be easy to understand and click through. Now let’s work on the checkout process. It needs to be straightforward, and according to 63% of the parents we surveyed, be via direct debit.
James adds, “Online booking is the only way parents want to sign up for children’s activities. Having a simple journey from being interested in a session to being signed up for it is no longer a nice to have, but a critical element of success. It needs to look good, represent the values of your organisation and, most importantly, it’s got to work. Parents demand simplicity, they want to sign up, understand what they’re signing up for and how they’ll be charged, and that it’ll happen each month without intervention.”
Do you want a helping hand with increasing your revenue? Get started today and one of our friendly team will walk you through how we can help.
