Read this article to find out how to maximize your client revenue. It is easier to sell to existing customers than attract new ones.
Every dollar counts and …Growth is easy. What matters most and perhaps is a tougher part is to retain your growth, and also, make it profitable. That’s where most design agencies feel stuck. Undoubtedly, demand for digital services has increased today.
Your design agency has a large market to target and boost its revenue. However, this is not as easy as it seems. The ever-rising number of design agencies has increased the competition immensely. This has made it tough for the design firms to stand out among others.
There are various design agencies which are finding it hard to hold their ground amid the rising competition. As a result, they are consistently coming up with new offers and services to allure the customers while building and retaining their existing customer base.
If you own a design agency and are worried about its revenue, there are various factors which can help you in boosting its growth and thereby increase revenue per client.
While growth can be related to sheer luck in the business but sustaining it over a period of time and boosting revenue is a result of some deeply-thought mechanism and sought-after techniques.
But, believe us, it is not impossible.
To boost the revenue per client of your agency, it is highly recommended to implement some carefully devised strategies. Building trust, adhering to your brand image and delivering on time are a few factors which can boost the credibility of your agency in the market.
Establishing and nurturing long term business relationships is based on your work ethics and principles. They would further go a long way in cementing your agency’s image and brand. Attracting and incentivizing the new entrants is crucially important.
That said; let’s have a detailed look on each of these defining factors. Given below are ten ways through which you can maximize per client revenue of your design agency.
Improving and improvising your manpower should be your top priority
Needless to say, your workforce is what makes you. The creative and innovative team members will go a long way in building your reputation.
The potential and productivity of your designers will define the brand image of your design agency. Although, understanding your designers in a way to fetch the best out of them might sound tough at first, but the whole process is worth it. It is an investment which will surely give its fruits later.
You can do this by incentivizing and motivating the raw and new talent. Efficient team members are an asset, and it is essential to nurture their talent from time to time.
Stop Over-servicing your clients
It is highly recommended to keep tracking your projects. Maintain a record of all your on-going projects and further, avoid taking more projects which your workforce can’t handle. It must be noted here that the time your agency takes to deliver a project is a major factor in determining your reputation in the market. Thus, take only as much as you can handle by rejecting undue workload.
Additionally, you should also pay emphasis on your work culture. Programs and events should be organized that aim to entertain and refresh your employees. This is because continuous designing and hard work can take a toll over their talent and skills.
Needless to say, overworked employees lack motivation and tend to produce a substandard product or service which will eventually prove detrimental to your agency’s growth. Therefore, it is always advised to reduce and manage the workload and the inflow of projects by keeping in mind the current productivity of your workforce.
However, if you don’t want to let the new projects go, a better idea here would be to maintain a network of designers to tackle the increasing workload and inflow. This would prevent you from getting stressed at the last moment and at the same time would prevent you from compromising on the quality.
Outsourcing is another great solution you can look forward to. Diverting certain projects to your offshore team would help you in increasing your revenue and at the same time prepare you for unplanned design projects and emergencies.
Further, in addition to determining the current productivity of your workforce, it is highly recommended to analyze a project before signing it. Analyze if it is worth investing time and money before you make a deal, rather than realizing midway after wasting your resources.
Attract and nurture entry level latent
This is a no-brainer. Entry level creative designers are motivated cost less and have fresh ideas. Thus, they would help you in generating more revenue when compared to an experienced designer in your agency.
However, to make them fit for your agency and to make sure that they design by the industry’s standards, it is essential to hone their skills.
But, does this mean that you should not employ experienced designers? Well, surely not. A best practice here would be to save your top level employees for crucial projects.
Focus on Strategies to boost sales
Managing the workload, aligning the demand with the supply and getting your best man behind the best projects are a few safe practices you can adopt. It is highly recommended to create and plan a strategy before taking new projects.
Make it a habit to analyze the time a certain project will need to be completed before committing to it. Check the designers who would be the right fit for the project, and if they are already working on any current projects. You should only take a project when you have analyzed all the essential aspects and had the enough resources to work. Or else, chances are high that you might have an unsatisfied client. And believe us; nothing hurts your reputation more than an unhappy customer.
Charging for the time invested and not the product sold
It is one of the striking features of any successful design agency. Time invested should be in direct proportion with the revenue generated. Make sure that an hour worked is an hour paid, and never devalue your products and services. This is one of the key strategies to increase sales revenue.
Prioritizing long term potential clients
Instead of focusing on the new leads, it is highly recommended to focus on retaining and nurturing the existing clients. It is easier to sell to existing customers. Business relationships are much like the personal relationships. They are indeed a product of faith, credibility and the most intimate investment, i.e., time. Prioritizing new clients along with retaining the existing one should be on your cards. Further, avoid compromising long-term gains and lucrative offers for short time profit.
Instead of wasting time and energy on the new leads, it is highly recommended to strengthen the existing ones. Make it a point to handle short time projects with extreme prudence to avoid unnecessary loss. Rest assured; long-term business relationships will surely help you in getting lucrative and stable projects.
Establishing value based pricing
Pricing is a major factor that decides the revenue generated per client. The best web design agencies do not scale up the prices of new projects and newer leads to boost their revenue. Instead, they price the newer projects by their market value regardless of the time spent on them.
The old art of saying no
We understand how hard it is to let a new project go. But, this is the need of the hour. Learn to say no to insignificant and relatively low-value projects. This would prevent you from jeopardizing the existing lucrative offers.
Undoubtedly, we all feel tempted to take more work than we could accommodate to maximize our profit margins. However, this often results in undue and unwanted stress, unmanageable as well as insignificant workload, low productivity and efficiency and eventually low revenue generation per client. Great read on the art of saying no.
Make sure that winning clients should never be your topmost priority. Instead, you should always focus on winning potential long-term customers. Avoid unnecessary burden as this will surely reflect itself on the quality of your projects. Various web agencies say yes to clients and no to the potential and lucrative long time projects, and this is where they go wrong.
Defining and developing scalable processes and services
Your core work ethics, parameters for the task and the technological know-how would help your web designers in providing the best output. Motivated and happy employees are a key factor in deciding the growth of a company. Thus, to keep them motivated, it is essential to promote a healthy competition within the organization. Make it a practice to award deserving employees. This would not only encourage the top performers but would, also motivate others. In return, this would help you in maximizing your revenue per client.
Building brand image
Well, Shakespeare said what’s in a name, and he wrote his name below for recognition. That’s simply how a brand image works. But, building a brand image is no easy task. It all starts with a logo design. It takes dedication, years of loyalty and a few promotional programs to boost your reputation.
On-time delivery, excellent performance, and quality standards are a few ways through which you can enhance your brand image and become an exceptional service provider.
What are your views on this? How are you taking care of your design agency regarding its ROI and productivity? Do let us know in the comments.