Finding ways to increase revenue is an important consideration for any business. Not only can it help you to maintain and grow financially month over month, but revenue growth can lead to your business better meeting the needs of your customers. This is extremely important, especially for franchisees, as building relationships with customers can lead to brand loyalty, repeat purchases, and an overall great customer experience, which is needed for continual success.
There are many tactics to increase revenue, some that will work well and others that may miss the mark. What’s important is to first understand what it is your customers’ need, want, and expect from your business. By first establishing who your typical customer is and figuring out their existing spending habits within your business, you can start to implement different ways to expand on your products or services.
One of the (many) great reasons for having a dog daycare franchise is that it is part of the booming pet industry. In 2020, annual pet industry sales soared to $103.6 billion in the US, with projections that 2021 will surpass that amount. With no indications of slowing down, increasing revenue for your dog daycare is imperative, that way you can have the resources, staff, and products to better service your local community’s growing needs.
A great way to boost revenue is by diversifying your offerings. Take for instance Dogtopia – not only we do have daycare, but we also offer boarding and spa services, and some of our locations offer additional services like grooming, training, and retail products/supplies. Basically, when pet parents visit one of our locations, they’re at a one-stop-shop doggie destination.
Having multiple revenue streams like this can allow you to expand, as you are opening your business up to a wider audience who will have varying needs. Let’s look to the Dogtopia example – when pet parents drop off their dog for daycare, they can arrange to have a bath and nail trim, saving them a trip to the groomer. This not only provides convenience for the customer and an increased comfort level for the dog, but it also allows you as the franchise owner to receive two sales rather than one. Convenience is one of the top reasons why more than half of consumers are influenced to shop, so the more you can provide that for them, the better.
Another element that comes with diversifying your offerings is the opportunity to offer your customers an ideal experience. A happy dog means a happy pet parent. When a dog comes to Dogtopia, they can play in our daycare, receive spa treatments, and then stay overnight with our boarding offerings, and this experience-driven business model can bring an exponential amount of growth. Recent findings indicate that experience-driven businesses drive faster topline growth, create 1.6x higher brand awareness, convert prospective customers into valuable customers at a higher rate, engage customers much more, and have a 1.6x to 1.9x higher year-over-year growth in customer retention, repeat purchase rates, and customer lifetime value.
Offering more in your franchise can also allow for an increase in cross-selling, which is a tactic that creates more sales by offering your customers additional items when they make a purchase. The goal is to improve the customer’s buying experience, so if they are already purchasing a service at your dog daycare, and you have the opportunity to make it an even greater experience with additional service or products, it provides a mutually beneficial opportunity. Again, offering an experience to your customers is where there is an immense amount of growth opportunity, and by offering multiple services and/or products, you can achieve this.
No matter what way you decide to increase revenue at your dog daycare franchise, the most important element that underlies all tactics is customer satisfaction. Whether you offer multiple revenue streams or other customer-focused offerings, is the customers that will provide the revenue, so a positive customer experience is crucial.
If you are interested in acquiring a dog daycare franchise location where you can realize these revenue growth opportunities for yourself, please feel free to use our online form, and a Dogtopia team member will reach out.