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Entrepreneurial-minded entrepreneurs focus on one path to success: starting a business and achieving sustainable growth. While the direction is clear and the mission clear, the path is full of challenges and missteps – but more importantly, there are opportunities.
The path to sustainable growth often requires creativity. For example, a gym that sells class tickets and memberships will eventually reach a sales plateau. This will happen as growth stabilizes and core service revenue reaches a predictable cadence. While there are still ways to sell more courses and memberships, the reality is that other revenue streams – particularly value-added products and services – will really help scale the business.
What are value-added products and services?
Value-added products and services improve the customer experience, address pain points, and demonstrate the company's commitment to providing exceptional value. These “perks” provide customer benefits that go beyond the company’s core products or services.
By offering value-added products and services to your existing customer base, you can gain more loyal customers, which in turn can lead to increased sales, improved customer loyalty and a strengthened brand reputation.
Related: 3 Easy Ways to Create Real Value During Entrepreneurship
Here are three value-added products and services that can help your business scale:
1. Digital maps
Digital cards are virtual business cards stored in a digital wallet. They can be shared electronically via QR code scans, email, social media or messaging apps.
Digital cards provide a convenient, digital way to share your business's contact information, keep customers updated in real-time, and offer exclusive deals, offers, or other perks. Essentially, they help increase a brand's visibility since they are always just a few taps away. The cars can also improve customer loyalty and enhance the customer experience by providing special discounts or notifications exclusively to those who have the digital card.
Some platforms can help you create and manage a digital map, and most are affordable and turnkey. The projected ROI of the investment is tied to awareness and engagement, which, when activated with an accompanying strategy, increase sales and revenue.
To launch a digital card initiative, research digital curation platforms and identify the providers that offer solutions aligned with your business goals, needs, and budget.
2. Extended Warranties and Service Plans
Although not always considered a value-add, extended warranties and service plans provide coverage beyond the manufacturer's standard warranty. These guarantees and plans provide customers with peace of mind and can increase their trust in your products or services.
The additional perks and sense of security can increase customer satisfaction. If your company has the capacity and can help resolve customer issues quickly and effectively, these benefits can reduce customer churn, increase customer lifetime value, and strengthen the company's reputation and commitment to quality and satisfaction.
The investments associated with extended warranties and service plans vary depending on the product or service and the length of coverage. To determine the viability of this option, conduct a cost-benefit analysis to determine whether this value-added option is beneficial and worth the investment.
If you plan to add extended warranties or service plans to your business, assess demand to ensure your customers will value them. Then find a reputable partner who can help you ensure that the new offerings are legally sound, competitive and meet the needs of your customers.
Related: If you want your customers to truly value you, you need to be their trusted advisor. Here's how.
3. Loyalty programs
Loyalty programs are usually about rewarding customers for their continued loyalty. The programs encourage repeat business and encourage brand loyalty by recognizing and rewarding customers based on their behavior (and the rewarded behavior can go beyond just purchase history).
Whether the loyalty program is based on perks or offers reward points tied to discounts and coupons, loyalty programs ultimately incentivize customers to keep coming back. They encourage and trigger engagement and provide opportunities for feedback. Additionally, loyalty programs launched with the right intentions and effective structure can provide valuable first-party customer data, helping you understand your customers' preferences and leading to higher levels of personalization and targeted offers.
To implement a loyalty program, identify the “loyal” audience (demographics, behavior, etc.) and program goals and design the program structure. Then, do your research and contact loyalty program providers who offer a platform and technology stack that complements your existing infrastructure.
Leverage value-added products and services to scale
To scale a business, you don't have to reinvent the wheel. You can add value and create additional revenue streams by staying true to your business and developing complementary products or services that fit your offering and what customers want. Adding these digital offerings can make it easier to scale by increasing profitability and accelerating business growth.