Revenue and transaction trends identify your company’s sales patterns over the prior twelve month period. Recognizing these patterns and what activities lead to growth is a critical step in making the right decisions for your company. Understanding your company’s revenue analytics and trends will help you answer the following key questions

• Who should you target for marketing initiatives? 
• Which products or services should you focus on?
• What customer and prospects should your salespeople spend time contacting?

How to meet your revenue goals

Trends for transactions and customer retention are the primary drivers of revenue, because they explain exactly what is happening in your business. They also tell you where your sales team and marketing efforts should focus to engage your customers and keep them coming back consistently.

Here’s an example. For one company, new customers during the past 12 months make up 51% of their customers. Here’s how these customers evolve over time, if they keep buying from the company:

Average transactions

Year 1: 3

Year 2: 13

Year 3: 18

Average revenue

Year 1: $39,099

Year 2: $154,537

Year 3: $178,789

What these revenue analytics show is that customers purchase more from you and are more valuable to you the longer they work with you. For this reason, retaining new customers over the long term has a huge impact on meeting your revenue goals.

Take advantage of revenue trends

For most companies, each year they keep a customer buying from them, that customer increases the number of purchases and how much they spend. One of the most critical aspects of reaching your revenue goals consistently is to ensure customer retention. Below are some strategies for retaining your customers:

• Consistent engagement – Send several targeted emails every month to your customers, reminding them of the products and services you offer, establishing yourself as an expert in your field, and encouraging them to purchase.
• Targeted approach – Look at your customer purchase data to anticipate what they may need or when they might be getting low on a product. Then send out an email or make a sales call that is specific to that customer’s needs.
• Collect and respond to feedback – Implement customer satisfaction surveys to gain insights into how customers feel about your company and how well you provide for their needs. You’ll learn about issues and problems and have the chance to solve them before a customer leaves you. Effective customer satisfaction surveys can boost retention by 20% – 30%.

Stay on top of your customers with emails, sales calls, and surveys to ensure they continue working with you and that you reach and exceed your revenue goals.

Understand your revenue analytics with Zintoro

By knowing which customer segments and which products produce the most value for your company, you can better target your sales team and marketing efforts. Focus on retaining your current customers, and highlight the products that generate the most revenue. That means that your sales people should be reaching out to at risk customers, encouraging them to stay, and your marketing people should be putting the most resources behind your frequently bought products and services. Zintoro’s analytics portal shows you exactly which customers should be called when and which products should be promoted.

If you want to understand your revenue analytics and implement tried and proven strategies to exceed your revenue goals, contact Zintoro today for a demo.

Almost every business sets revenue goals for the year. Most will check their progress towards those goals by looking at how much revenue they’ve brought in to date and then comparing to previous years. But what a lot of businesses don’t do or don’t know how to do is look at why their revenue is trending up or down. That’s a problem because, unless you understand the “why”, you won’t know what to do to improve it.

Which business metrics matter

In order to understand your progress toward revenue goals, two of the most important business metrics or analytics to look at are customer retention and purchase frequency. Customer retention measures the percentage of customers that purchased within the last 12 months that also purchased within the prior 12 months. Purchase frequency tracks the number of times a customer buys products or services from a company within a given period.

Customer retention

Customer retention is key to reaching your revenue goals, because your customers spend more every year that they do business with you: 30% more in year two and another 50% more in year three. The longer you retain your customers, the greater their spend will be and the higher your revenue will be. In fact, increasing customer retention by just 5% can boost profits by 25% to 95%.

Purchase frequency

Purchase frequency is just as important as customer retention. If a customer’s purchase frequency is decreasing, then you are at risk of losing them. If their purchase frequency is remaining steady or increasing, then you have a better chance of retaining them over the long term. A higher purchase frequency can also mean a higher customer spend, moving you closer towards your revenue goals.

Improve customer retention and purchase frequency to reach your revenue goals

Increasing retention and purchase frequency is crucial for boosting the amount of money you bring in. Winsby has tried and proven methods for expanding both.

Customer retention

The simplest method for improving retention is to find out why customers are leaving. The best way to do that is through customer satisfaction surveys conducted by an outside third party like Winsby. Using a third party will elicit candid comments that customers may not want to share with an employee of your company, and the surveys will provide specific feedback, so you can solve any issues quickly.

We see an increase in retention rates of 20% or more when customers are routinely surveyed about their experience with a company in Winsby’s customer satisfaction surveys.

Purchase frequency

Distributing emails to customers and prospects increases how often customers purchase from you and remind customers of everything you offer. In fact, with Winsby’s emails, customers on your distribution list will generally purchase two to three times more often than customers who are not receiving the emails.

Understanding your business metrics

Before you can improve key business metrics like retention, purchase frequency, and others, you have to start measuring analytics, know how they trend, and understand what those trends mean for your company. When you work with Zintoro and Winsby, you have a portal where you can view all the most important business metrics. Our financial experts will walk you through them, provide insights on trends, and help you make better decisions for your company.

Business metrics available through your portal:

• Historical customer retention rate
• Net growth rate for number of accounts
• The number of active accounts
• How often customers purchase
• Top customers
• When customers purchased last & who hasn’t purchased recently
• New customers
• Lost customers
• Historical revenue
• Growth in the number of invoices

If you want to start measuring analytics, stay on track for your 2023 revenue goals, and set achievable revenue goals for 2024, reach out to our team today!