The fledgeling stages of a new business are always the most exciting...and nerve-racking. Those first tentative steps when introducing your product or service to the market fill you with visions of delighted customers and the development of an industry-leading brand. To actualise these goals, however, you need a robust growth strategy. That's because only 33% of new businesses make it past a decade, and 66% drop out of the race in the first two years. With an inbound marketing gameplan, you can gain momentum in the early stages of your business by carving out your target audience and effectively identifying immediate opportunities.
But a growth strategy isn't simply about financial survival and quick wins; it's a long-term commitment to increasing profitability and acquiring a greater share of the market – sustainably. To achieve this, you must set SMART goals that will help you to track return on investment (ROI) and continuously test and tweak your strategy. This will help to optimise your marketing budget and keep your business aligned with the needs of its customers.
Corporate strategist Igor Ansoff has played a significant role in establishing the traditional growth strategies that most marketing professionals apply today. Namely, these strategies are:
1. Market penetration – This is where a business will enter a market with an existing product and compete against similar companies for a share of the market. It's the most common strategy, and one that is widely used today. Just think of ecommerce and dropshipping websites; there's a low entry barrier and plenty of competition, making the success of such a business highly reliant on its marketing strategy.
2. Market development – A development strategy focuses on the identification of new customers and market segments. You can broaden your targeting framework to reach new audiences and tweak your message to highlight your product's advantages for that particular segment. This could be as simple as opening a branch of your business in a new town or upselling to existing customers by showing them how to get more value from your product.
3. Product development – Evolving and upgrading your product to serve the changing needs of your buyer personas is known as a product development strategy. By improving your product or enhancing its features, you can increase brand loyalty and invite new customers on board.
4. Diversification strategy – Businesses may choose to partner with or acquire existing companies to gain access to new markets or diversify their offering. Diversification can be concentric or conglomerate and will require sophisticated management strategies to make the merger or acquisition a success.
Deciding on the right strategy will depend on the current position of your company, your existing target market, and your ability to undertake risk. Market penetration is the typical starting point for businesses wanting to incur minimum risk by selling to a well-defined audience. Eventually, however, that market will saturate, and your business will need to move onto the next phase of its growth strategy. For this reason, the tactics and tools you use throughout your marketing need to be selected with sustainability in mind. Nurturing your buyer personas, qualifying your leads, measuring content engagement, and staying committed to delivering value to the customer will ensure the longevity of your business.
There isn't a one-size-fits-all answer when it comes to business growth, but there are tested tactics that can propel your business to new heights.
If you've conquered your local turf, it's time to set your sights on the global stage. However, this isn't just about international markets; there may also be some very lucrative gold mines in your own backyard.
With the continuous expansive reach of ecommerce, there is plenty of research to indicate that companies seeking growth on the international platform can substantially enhance revenue.
Segmentation is a powerful tool when it comes to conquering markets both at home and abroad. You break down your audience into smaller, more manageable chunks and deliver exactly what each chunk wants. Personalised campaigns will help you boost conversion and win more loyalty among customers who appreciate the level of attention you've paid to their individual needs.
A fresh product and service lineup is essential for growth. Customers love it when their favorite brands bring out new products, and those that consistently innovate experience more sales and increased profit.
By focusing on innovation, you'll ensure that you're always delivering something your customers genuinely want and need. If this hasn't been a priority for your business until now, you may want to pay attention. A PWC survey of CEOs indicates that 64% believe innovation is on par with operational effectiveness when it comes to a company's success.
Product diversification is equally as important. Diversifying your product portfolio is crucial for risk reduction in the dynamic business landscape, shielding against potential downturns or rapid market changes. This strategy not only minimises reliance on a single product or market but also fosters greater resilience. Moreover, diversification opens avenues for increased sales and revenue by tapping into new markets and customer segments, providing a buffer against economic uncertainties.
If two heads are better than one, imagine what you get with two (or more) businesses? Partnerships and acquisitions are a surefire way to turbocharge growth as you access new sales pipelines and market segments.
Essentially, collaboration or partnership will help you tap into more resources and ideas so that you can reach new heights together. By gaining market share, acquiring new technology, or even entering new territories, you can accelerate growth quickly. It's important, however, to consider the cultural impact on your existing business and carefully plan the integration between your existing and new business.
These tactics aren’t just theoretical. They’re proven ways to see real strategic growth. It does, of course, take planning, precision, and a little bit of daring. The strategy and tactics you employ depend on your unique mission. This is where BEE’s Digital Growth Roadmap can play a pivotal role in the next step your business takes towards expanding its horizons. If you’re keen to leverage your sales and marketing budget to maximise impact, we’d love to hear from you.
Digital marketing allows you to continuously gather data and make decisions based on the feedback and engagement you get from individuals who interact with your brand. Free trials, referrals, growth hacks, email campaigns, and industry events should always fall within your greater marketing strategy, ensuring accurate segmentation and more opportunities to expand your market share.
Our experience shows that, with a comprehensive marketing roadmap, your company can scale and thrive. We're in the business of putting companies in the top 33%, and we'd love to see you firmly established, fully operational, and highly profitable over the next decade and beyond. Get in touch, and let's start building your company's growth strategy.