Ten Tips to Increase Profits For Your Business

by Buana Sari Digital Marketer

Profit is the lifeline of a business. Business owners find it quite challenging especially when it comes to making profits. Businesses should not merely focus on driving sales in the millions, but also be consistently generating profits. Brand leaders across the globe agree on the fact that profit is what fuels a business, not sales.

Business leaders around the globe are optimistic about growing profits this year. Although levels of optimism vary between countries. Despite the pandemic, leaders are optimistic that economic recovery and brand profit margins will rise in 2022, according to a recent study. The IMF predicts that global business growth will increase by 4.9% this year. Some leaders are skeptical about this while others are optimistic. Pandemic tops the list of worries, followed by economic uncertainty and inflation.

So what motivates the leaders across the globe? Emerging marketing technologies and their contribution to revenue and profit is what drives the optimism. Most technologies are boosting business earnings, enhancing both top-line and bottom-line with customer interaction, engagement, automation and digitalization.

Brands are embracing new business models to ensure industry relevance, innovation and competitive differentiation resulting in higher margins. Advertising and tech budgets are expected to scale-up to the heftier pre-pandemic levels of 2019 or beyond.

Though progress is being made, more can be done in terms of earning high margin revenues. Keeping in view the latest trends and best practices, here are ten tips which your business must consider for staying profitable :

1. Performance-oriented Lead Generation

Leads are part of the broader customer lifecycle that they follow transitioning from casual visitor to customer. Lead generation is the process of capturing interest in a product for the purpose of developing a sales pipeline, allowing brands to nurture the prospects until they are ready to buy, adding to profits. 60% of brand marketers are of the opinion that profitable lead generation is a key pain point for a brand.

Recent studies reveal that mobile marketing has emerged as an excellent way of generating leads at optimum cost. Mobile-based lead generation campaigns quickly grab customer attention inducing customers to share their contact details. Such customers instantly purchase products or services.

Businesses are using several mobile lead generation platforms including moLotus, Marketo, HubSpot, etc. for lead generation at lower costs. Innovative and spam-free moLotus mobile video customer interaction platform stands out in attracting more leads in the form of relevant customer info than any other tool or technology at lower cost per lead. The platform offers some of the most unique lead generation campaigns using multimedia formats like 40 sec. Videos, other multimedia formats with easy interaction options. These help in not only capturing leads but also converting them into sales.

2. Reduce Cost of Customer Acquisition

It is always a challenge for businesses to acquire new customers and earn profits at the same time. High customer acquisition costs adversely impact profitability. By lowering customer acquisition costs, businesses can significantly increase profits. The real challenge comes when marketers have to strike the right balance.

The customer acquisition costs for different businesses differ depending on the resources they use for promotional tools. Marketing tools like Marketo, Mailchimp, Facebook, HubSpot, etc. used for getting new customers have proved to be expensive. A modern tool and technology has turned customer acquisition to be quite cost-effective, resulting in high profit margins. The secret of cost-effectiveness lies in the innovative moLotus customer acquisition campaigns. moLotus campaigns directly target the massive customer base of brands reaching the mobile inbox of each customer irrespective of the phone type & model. Brands can easily create and send Illustrative product videos, showcases, catalogs, etc., and offer to attract potential customers who intrigue them to interact. The real-time automated reporting system maintains every customer response details organized and delivers them to the brand advertisers in a meaningful way.

3. Increase Response & Conversion Rate

Customer response rate and conversion rate are good metrics to track in sales and profits. A suitable consumer response to advertising adds to business profits. Conversion rate’s potential is determined by the value proposition offered. This makes the value proposition the most important conversion factor.

Several tools have come-up assisting brands in getting higher responses and conversions. One such tool is moLotus which is helping businesses in getting superior customer responses leading to better profits. Brands are able to create compelling and clear value propositions for the customers via moLotus. Studies reflect that customer response rate via moLotus has been 8 – 15 % ; much higher than any other tool or technology making it the best mobile marketing platform.

4. Make Pre and After-Buying Processes Easy & Secure

Experts say that convenience is the key to boosting sales and earning high profit margins. In the e-commerce industry 97% of consumers abandon purchases because the services are not convenient enough, showing that the e-commerce industry needs to compete more on convenience than price. They fail to earn the desired sales revenue ultimately earning low profits (Source: Smart Insights). It’s no wonder then that convenience is changing the way consumers buy.

Brands should focus their marketing efforts towards customer convenience in order to register superior profits. Marketing automation platforms like moLotus, GetResponse, Marketo, etc. simplify and enhance the buying experience of consumers so that they buy more and keep coming back. Surveys reveal that customers watching moLotus mobile videos understand and purchase products according to their convenience.

More and more customers are preferring digital, at-home, and low-touch buying options offered by moLotus. The platform gives digital access to the product information and customers can buy the products in just a click. Customers get several easy interaction options making it easy and enjoyable for them to interact with the brands. It is a boon for customers unwilling to interact with pushy sales staff.

5. Cost Optimization & Reduction

Cost optimization is the process of reducing expenses to increase the bottom line. Research has shown that cumbersome customer processes are the culprit behind high costs and consequent low profits. Most cost initiatives fail because they lack a clear-cut strategy and adoption of appropriate mobile and digital transformation technologies.

One such breakthrough transformation technology which reduces business costs is moLotus. Brands should cut down process cost by embracing moLotus transformation capabilities. The technology has automated and transformed customer processes like lead generation, customer onboarding, contract renewals, reminders, and many more making them easy and cost-effective.

For advertisers across the globe advertising cost minimization is the top priority resulting in profit maximization. moLotus real mobile advertising is assisting them in creating effective campaigns on shoestring budgets leading to improved bottom line. Advertising platforms like YouTube, Google Ads, Facebook, AdColony, etc., are taking a backseat due to the considerably high cost of advertising.

For businesses in pursuit of cost-effectiveness, moLotus has reduced printing, staffing, training, telemarketing, compliance, distribution, etc. costs yielding super profits, high ARPUs and high revenues.

6. Personalize Communication with Customers

Personalized experiences are characterized by brands' ability to make product recommendations, create offers, and deliver experiences that are uniquely suited to an individual customer. Several studies outline the fact that Millennials and Gen Z customers expect a high level of personalization from brands of all sizes. Personalization boosts loyalty, resulting in higher profitability.

According to a June 2021 study by SendGrid, 60% of consumers are more likely to become repeat buyers after a personalized buying experience. The majority of them feel frustrated with impersonal shopping experiences. Therefore, for businesses investing in personalized marketing can pay off well with super profits.

Businesses have been trying to personalize their offers using age-old emails, social media and other digital advertising tools yielding unsatisfactory outcomes. According to experts, businesses must switch to mobile marketing and mobile video advertising platforms like moLotus to send hyper-personalized messages to their customers for superior customer engagement and profits. moLotus personalizes brand messages using customer names and other required customer data. Brands have started using moLotus to segment customer data and target customers via online personalized recommendations, offers and messages to increase sales and profitability.

7. Enhance Brand-Customer Interaction

Every customer interaction is a chance to build customer relationships, earn their loyalty and finally add to margins. Although over the recent years there has been an acceleration in the volume of customer interactions, it is not according to the expected lines. The reasons cited by marketing experts is inadequate use of marketing technology.

Businesses must extensively make use of marketing technologies like moLotus to intrigue and interact with consumers. The platform enables them to create informative and interactive marketing campaigns offering easy interaction options like SMS, USSD, Calls, Link Clicks, etc. Further, no other technology supports use of such a large variety of rich media formats like videos, slideshows, dynamic greetings, showcases, brochures, and more.

Brands can build Interactive storyboards using the rich media formats and adding product pictures, voice-over and music, enabling two-way interaction with customers. Interactive and contextual communication is being seen as a gross margin improvement initiative adopted by big brands across the globe.

8. Increase Customer Loyalty

The best customers, according to researchers, are the most loyal and most profitable ones. The loyal customers are more likely to buy business offerings than new customers. For brands that early adopt new tech tools, the impact on the bottom line is tremendous. When they leverage technology to facilitate better customer experience, they are more likely to have high customer retention and loyalty rates, thus keeping businesses profitable.

Loyalty marketing has been transformed by digital technologies like moLotus, Open Loyalty, LoyaltyGator, Yotpo, etc. contributing towards business profit. Some of the examples of profitable moLotus loyalty campaigns are greeting campaigns targeting special occasions like anniversaries, birthdays and festivals. The campaigns are custom-branded with options for name, greeting messages, rewards, reminder messages with call-to-action for individual customers. The best part is that the campaigns directly reach the customer’ messages inbox without the requirement of any app download or involving unnecessary data charges.

9. Encourage Upselling & Cross-selling

Cross-selling is the technique of targeting existing customers to sell them additional products. On the other hand, upselling involves providing customers with costlier or upgraded versions of existing products. Both cross-selling and upselling are sales tactics that enhance customers’ buying experience, revenues and profits when executed appropriately. Bain, a top global consulting firm, identified profitable customers for up-selling and cross-selling and found that, on average, upselling and cross-selling products would increase individual customer spend and profitability significantly. Product innovation in view of the changing needs of customers has further added to more upselling and cross-selling opportunities.

To reap the full benefits of upselling and cross-selling, businesses should promote products embracing mobile advertising and marketing tools like moLotus, AdColony, OptiMonk, and the likes. Businesses can run personalized, customized and automated upselling and cross-selling campaigns via moLotus. The campaigns target massive customer databases and capture instant leads.

Different industry verticals have increased profitability differently using moLotus upsell and cross-sell campaigns. For instance, the global banks have used moLotus cross selling and upselling campaigns to their fullest potential. Banks have run upselling campaigns pitching customers to upgrade their credit card from the basic, entry-level card to the premier level credit card with higher cash back rates.

10. Analyze Campaign Performance

Prudent marketers understand that a good campaign becomes a great campaign when it is profitable. Great campaigns are highly targeted to acquire or retain more customers, resulting in outcomes like increased sales, profits and uplifting brand equity. To ensure profitability, marketers must closely analyze campaigns and find new ways to make them improve performance.

Analyzing marketing performance is an ongoing endeavor, and requires the usage of appropriate tools offering data analytics. Utilizing the right technology like moLotus enables marketers to get the right business insights, which will facilitate strategic planning, boost business performance with enhanced profitability.

Marketers should use moLotus data analytics to unleash deep business insights and achieve strategic business goals like profit maximization. moLotus online campaign management and revenue management dashboard enables effective campaign tracking and report generation. Integrating moLotus Big Data Analytics with the existing business models produces tangible financial results including bottom-line enhancement.

Conclusion

There is no one way to make business profitable. Different approaches and technologies more suit different businesses, depending on the type of their customers, product-line, scale, industry verticals and the complexity of distribution channels. But whatever be the context, the advent of breakthrough marketing technologies like moLotus will be a privilege for every business striving to enhance profitability. When you embrace the right technology, your business will make more money, increase profit and lead to financial success.