The total revenue your business earns can be summed up by the following equation:
Total Revenue = Revenue per user * Number of users.
This revenue generated is a direct result of the value you provide to your user base. You can observe this value by substituting it for revenue in the same equation:
Total Value Provided = Value to 1 user * Number of users.
Looking at it this way provides an easy solution to increase your business revenue:
- Find more users.
- Increase the value you provide to each user.
What does it to take to find more users? For each additional user, you need to:
- Introduce the person to your product or service.
- Get him to trust you.
- Convince him to make his first purchase.
That sounds like a lot of work (and it is). Once you have done all that though, increasing the value you provide to an existing user becomes much easier, since he already knows your company, trusts you and has made his first purchase that he is hopefully happy with (if not, you have a different problem to solve).
Have you done everything you can to maximize the value you are providing to your existing user base? If not, then would it be easier, cheaper and more efficient for you to maximize that resource first, before looking for new ones?