Earning incremental revenue from an external source - a necessity during recession?
Earning incremental revenue from an external source can be seen to be a vital element for any business in the current climate. The recession in many cases is responsible for cutting businesses’ potential earnings from their core products/ services, to a minimum. In a recession that is as deep as the current one, the need to resuscitate business incomings is vital. So in many cases, to maintain a healthy profit margin companies have been looking to expand their current consumer offering.
One such way to introduce an extra incremental revenue source is to work with an external company offering additional products/ services under the umbrella of your brand. By upselling other products such as a loyalty and membership programme or discount club to existing customers there is the potential to encourage them to spend more at the point of purchase.
If this product is tailored to the existing customer’s interests in relation to the business’ products, the success rate is likely to be higher. For example, The Rocket Marketing Group operates the JML VIP Savings Club – a loyalty and membership programme/ discount club, which focuses on Entertainment, Fashion and High Street, Health and Leisure, Freedom to Shop, Travel, Toddler and Baby, Motoring, plus 10% off JML’s entire range of time-saving ideas. These sections reflect, complement and expand on JML’s existing products. The Club is then offered to customers when they call the company to order one of JML’s core products. This not only gives JML a second chance to upsell, but it gives them the opportunity to offer non-core product/ services, enhancing their consumer offering.
This model can be applied to a number of companies, whatever the core products/ services are. When the non-core products are offered through an external agency a range of existing clients can be put together to create a loyalty and membership programme or discount club suitable for the brand’s target market.
There are a number of ways to create incremental revenue and should all be seriously considered by companies who don’t want to rely on the revenue generated through their core products/ services or resign themselves to consolidating the business during tough times.
Contact Us if you are interested in earning incremental revenue and driving customer retention through a loyalty and membership programme or discount club.
