4 Proven Ways to Increase Incremental Sales
To generate a remarkable success in this dynamic digital age, you would need to offer value, increase customer loyalty, and exceed your expectations.
High-value repeat purchase is more important than a cheap sale. And it takes using the right approach, setting SMART goals, and leveraging the right KPIs to achieve your business objectives.
It takes an understanding of what incremental sales are all about to win in this present competitive market.
What Then Is an Incremental Sale?
Before we answer the question, 'What is an incremental sale?', it is crucial to understand what incremental mean in business.
What Does Incremental Mean in Business?
Incremental means a gradual increase. It could increase your ad spend and product exposure over a given timeframe given some certain benchmarks.
An incremental sale can be defined as the conversion that happens based on your marketing or promotional activity. It may incorporate a pay-per-click campaign to social media advertising or content marketing.
What Does Incremental Value Mean?
A lot of business leaders agreed that optimizing your sales funnel, closing more sales, and enhancing your sales technology.
At the very center, incremental sales combine these three aspects.
For instance, your marketing efforts generate leads, and your sales team convert the leads to paying customers. These customers can buy again and become your brand ambassadors.
How Do You Calculate Incremental Sales?
You can measure incremental sales by generating new customers.
The term 'new' differs among companies. For some, it means first-time buyers, while others classify new to include existing buyers.
Streamline recommends that you can measure incremental sales by performing an incrementality test. This is more or less like setting up two test groups in the medical field where a group takes the actual drug, while the control group receives a placebo. That way, you can know which technique is effective.
Here's a real-life scenario to answer this question:
A SaaS enterprise usually sells $10,000 software every month without running an advertising campaign. In October, while running a PPC campaign that costs $1000, the company sells $18,000 software license. The business owner estimates the incremental sales in this manner.
Incremental sales ($): $18,000-10,000= $8,000
In case your incremental sales surpass the initial investment you have made in marketing or culminate into an indirect surge in sales that can be attributed to particular marketing activity, you stand the chance of tracking the success of your marketing endeavors continually.
So How Do You Increase Incremental Sales?
To achieve success and to also bolster the definition of incremental sales, you can pursue these best practices below:
Develop a stable customer relationship
This is vital to sustaining long-term success in generating incremental sales. To achieve this, you need to not only create and deliver content that aligns with the requirements of your customers but those who address their pain points.
You also need to spark meaningful conversations with your customers through your social media channels. Don't forget also to send a customized thank you note to them for their interests, purchases, and trust. According to Chron, calling your customers to appreciate them for engagement and purchases goes a long way to increase customer loyalty.
Establish your KPIs and business objectives
It is highly relevant to establish your intentions if you want to define incremental sales and generate optimum incremental value. Your strategy can include backtesting different forms of media, touchpoints, channels, and platforms. You can also decide on the metrics you need to track to assess your performance.
Ask focused questions
It is highly essential to ask salient and focused questions that will inform the course of your marketing efforts. For instance, you can ask, 'How can I optimize our email marketing sales?' This form of a focused question will help you track conversion based on the direct outcome of your customer emails while spotting the aspects that need improvements to boost sales.
To leverage the power of incremental sales, it is essential to remain consistent in every facet of your operations. Track the appropriate KPIs consistently to generate actionable and valuable insights, and then make adjustments continuously. This will make your branding to be cohesive across different touchpoints and enable you to maintain an active presence via social media. Tracking the right KPIs will also help you deliver useful and engaging content.