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Achieving a large and consistent stream of recurring revenue should be the goal of all sales teams. If you want to start building recurring sales revenue for your business, here’s what you need to do to get started.
1. Go on a Customer Service Clean Up
If you want to build recurring sales revenue, the first thing you need to do is ensure that great customer service is happening at your company. A happy customer is a repeat customer; simple as that.
Ensure customer service is a priority by going on a customer service clean up and reviewing your procedures. Ensure every sales rep is adhering to a high standard of customer service and if not, do something about it quickly. Make sure your customer service guidelines go above and beyond when it comes to ensuring customer satisfaction.
While the benefits of great customer service extend to repeat customers and referrals, the consequence of bad customer service is that any attempt to build recurring sales revenue will never get off the ground.
2. Add a Subscription Service
The most dependable type of recurring sales revenue is that which comes through a subscription. Your company’s ability to offer a subscription service will obviously be highly dependent on the type of product or service you offer. However, don’t be scared to think outside the box! If you sell office supplies, rather than wait for your customers to reorder stock; offer a great rate on a monthly subscription package that they can rely on and forget about.
If you’re in the software business; consider getting into SaaS - Software as a Service. Big software companies now all offer subscription services to their software such as Microsoft’s Office 365 and Adobe’s Creative Cloud subscriptions. Offering subscription packages for your software is a steady, recurring sales revenue and allows you to provide great customer service through the ability to regularly tweak and improve your software.
If your business isn’t in software, you can still take advantage of the popularity of SaaS subscriptions through affiliate sales. Become an affiliate of a product you use and trust, then turn your customers into referrals. When one of your referrals purchases the software of a SaaS program, you’ll get a percentage of the income for as long as they remain customers.
3. Create Service Plans
If a subscription service just isn’t suitable or viable for your business, consider creating service plans for renewals. Offer customers a discount for regular renewal of services or restocking of products. This will lead to recurring sales revenue without a subscription and will reduce the need to pressure customers to renew each month. For services, consider offering increasing discounts based on the length of time to which customers commit. For example, a one month contract costs $500 dollars whereas a six-month contact is $2,880 equalling a $20 a month discount.
4. Offer a Membership Program
Membership programs with loyalty benefits are a great way to secure recurring revenue and inspire customer loyalty. For a regular monthly fee, you can offer your customers access to selected products or services. Make membership enticing with members only exclusive offers and rewards and build a deeper client relationship with your members by making them feel valued. On top of the revenue from the subscription fee itself, your members will be more likely to purchase additional products or services from you if they are already invested in a membership. Try offering add different membership levels with different rates, incentives and exciting rewards to attract and reach a broad range of customers.
5. Branch out into Supplemental Services and Products
While you have a core product that works, don’t be afraid to branch out into supplemental services and products that your customers need. If you can offer them a related and required product, it’s not only an additional revenue stream but it may be a service that you can offer on a subscription basis, diversifying your product line, building recurring sales revenue and increasing a customer’s value.
For example, let’s say you work for a web designer, once your company has created a fantastic website for your customer, it’s unlikely you’ll see them again for the foreseeable future. However if you also offer web hosting, that could be a monthly or annual fee that will keep you connected.
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