Ten to twenty percent revenue growth sounds like an amazing goal. And it is until you realize your business can’t sustain that kind of growth.
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What should you do?
That’s the question we were recently asked, and our answer was, “It depends.”
It depends on where you are with your business today: revenue, team size, customer base, product offering, and more. We asked Jim Labuszewski(Please change), the founder and CEO at seedbox, what he would advise a business owner to do.
The first step is to understand the growth model that led to the 2021 revenue. So you can follow a similar growth model and get 10-20% revenue growth in 2022. Here are some examples of growth tech architecture that’s worked in the past:
1. Make changes
The first step in reaching 10-20% revenue growth is to recognize that you will need to make some changes. If your business is currently making 7-10% revenue growth a year and you want to achieve 10-20% growth in the coming years, you will have to do things differently. Be sure to find and hire a new team member who understands how to help you achieve 10-20% revenue growth. If you don’t have a headcount for this person yet, that’s ok – start by reading all the books. You can have about 10-20% revenue growth.
Start each workday with a review of business metrics or a review of the market research you recently conducted relative to 10-20% growth.
2. Use the right technology
The right CRM and ecommerce platform will help grow revenue faster. To survive and thrive in the ecommerce business, you have to spend time on the right activities. If you respond to customer complaints, you are already behind in the game. The question is: what are you doing to increase revenue, reduce costs and increase profits?
The best way to boost revenue is to use a software solution that integrates inventory management and shipping with your ecommerce website. In addition to helping ecommerce businesses flourish, CRM and ecommerce platform solutions help grow revenue faster by:
- Increasing online sales conversion with targeted marketing and promotions
- Improving omnichannel engagement to collect and recognize customer reviews
- Improving upsell and cross-sell to get more revenue from existing customers
- Helping reduce returns by refunding products automatically
- Showcasing product inventory status and delivery schedules
- Tracking customer behaviour for more effective email campaigns
- Reducing returns by processing returns automatically, using machine learning algorithms
- Improving inventory accuracy, reducing costs, reducing online fraud.
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3. Use an SEO firm to elevate your SEO game.
When you’re an ecommerce business with a small team, it’s really hard to keep track of all the day-to-day stuff. From day-to-day operations and customer service, there’s never enough time in the day to get everything done. If you want to achieve 10-20% revenue growth in 2022, it’s time to hire SEO firm team members who will take on some of the responsibilities you no longer can handle and free up your time for more strategic things. To achieve 10-20% revenue growth in a single year in 2022, your SEO strategy should focus on:
1. Target more search terms that are less competitive by writing concise product descriptions and including the most important keywords in those descriptions.
2. No more than 3-4 organic keywords per page.
3. Make sure you optimize your product images as well as possible.
4. Learn how to read the market without wasting time and money chasing phantom opportunities.
10-20% annual revenue growth over the next five years should be easy to achieve if you’re prepared to avoid subpar marketing tactics that can kill your growth and profitability overnight.