How to reinvest your profit?
The process of growing your revenues never ends, it’s a cycle that keeps on going. You invest your money, to generate a profit then re-invest this profit again!
However, the question is how to do it? Should you extend by opening few more branches, hiring more salespeople? what is the best way for smart investing?
In this article, I’ll walk you through how to make the right choice to reinvest your profit based on consumers’ behavior.
Less brick and mortar
Less brick and mortar is the method even huge industries who can afford opening hundreds of branches worldwide are following. Take Adidas for example, they’re going to close 110 of its local stores in the USA and shift to online retailing in 2018.
The idea of going to a shop yourself is dying. The new generation has grown up using their mobile phones for shopping and placing orders for anything. Even for food delivery.
In the USA, Amazon was the reason for many retail shops to shut down or declare bankruptcy, such as; Toy’s R Us, Macy’s, Payless, RadioShack, and many more.
All of them had one deadly common mistake. They didn’t adapt to consumer buying behavior. They focused on selling and marketing the old-fashioned way and didn’t try to implement other methods like Smarketing or growing their business where their customers are.
Reinvest where your customers are!
How or where do you think any consumer spend most of their time? The answer is; Online. Either they are searching for something, chatting, playing, or whatever they do.
Users spend on average 3 hours a day using their mobile phone. Having your brand in front of them can definitely boost your revenues even more.
But how to reach them? Glad you asked, typically people would tell you, create social media accounts for your brand. Invite your friends to like and share. Create Ads to reach your target audience.
I’d not say that’s wrong or don’t listen to them. It’s just their advice is missing something and that’s the main factor in boosting your profit. In the end, social media for friends, website for sales.
How to re-invest your profit in the right direction?
So, as I just said social media is a good way to grow your target audience and increase your sales.
But at the end of the day, it shouldn’t be your primary and only channel.
What you really need when reinvesting your money is an owned media channel.
A website, or mobile application. Those are two ways to reach thousands of audiences and the best part is you own this channel.
There are many benefits of having a website or mobile application they are much more efficient than opening a new place that will let you end up with paying so much for acquisition cost, rent, taxes, salary, and so on.
Unlimited access to your customers’ behavior
Performance: You can track all the sales transactions through your dashboard. You’ll have unlimited access to what your customers like/dislike and what kind of products they want and buy more frequently.
Usability & Design: If your website/mobile app was designed correctly, then your target audience won’t have a problem using it. Plus they will be able to shop/place an order very easily.
If you’re not a technical person or you don’t understand too much tech. talk Check those two articles to help you be on the same page with the UX/UI designer.
Customers’ flow: You will be able to see your customers’ flow on your website/mobile application know how they think, and what captures their intention.
Easy content updates: You can easily apply any price changes updates, announce new discounts or offer special promo codes.
Security: It’s your own channel. You control its rules, so you know that your products are in a safe place.
Data: You’ll have access to rich data about your customers, that your Smarketing team can use them later for retargeting and better understanding of your audience.
Reinvesting your profit in the right direction will save you unnecessary cost. Everything is being put up online. It makes the customer’s life easier. So every company should be digitized in order to sustain in this age of technology.
Do you have any question or you want to boost your profits? Get in touch with us today!