Versatile Revenue Improvement Ideas

profitability analysis
Neue Antwort am 1. März 2021
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Anonym A fragte am 28. Feb. 2021

What are some versatile revenue improvement ideas that are applicable to most cases (e.g. increasing marketing)? Thanks

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Ian
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bearbeitete eine Antwort am 28. Feb. 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

Hi there,

Remember, you need to apply your revenue improvement ideas to the specific case at hand. You cannot be generic.

That said, some major ways companies boost sales include:

  • SAAS (software as a service)
  • (Relatedly) Subscription revenue
    • Get people onot subscription plans (i.e. Netflix)
  • Behavior-changing "memberships" - i.e. Amazon Prime
    • When people enter Prime membership, they actually actively spend more than they did before
  • Bundling
    • I.e. sell a few things together
  • Radiation
    • Sell products similar to the current one
  • Low-price entry
    • Get someone in with a super cheap/good deal, then, now that you have them as a customer, sell additional, higher-margin products (insurance companies do this, for example)

(editiert)

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Luca
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antwortete am 28. Feb. 2021
BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached

Hello,

First of all I suggest to breakdown the problem into two subsections: Volume and Price.

Regarding the volume you can think of many different ways to increase it taht you have to evaluate according to the specific case: invest in marketing, entry new market, target new market segments, reinforce sales force, upselling, create new product ecc..

On the price section, you should understand what is the best price point to mazimize the revenues. Be careful: increasing the prince it's not the only solution to increase revenues. For example if decreasing your price by 20% will increase your volumes by 40%, then your revenues will increase.

Hope it helps,
Luca

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Clara
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antwortete am 1. März 2021
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

It´s very difficult to give you a meaningful answer in generic.

I would recommend to always break it down (revenue: P x Q) and build the 2 complete branches.

Cheers,

Clara

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Adi
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antwortete am 28. Feb. 2021
Accenture, Deloitte | Precision Case Prep | Experienced Interviewer & Career Coach | 15 years professional experience

Hey, whats "versatile"? You mean out of the box/innovative?

No need to overthink as there are plenty of proven approaches already to increase revenue by looking at customer segments, channel mix, product/service, M&A, Alliances/Partnerships, talent/human capital etc etc

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Anonym B antwortete am 28. Feb. 2021

Increase the price and/or sales volume...

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Ian

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