Determination, prudent business practices, and good business growth strategies are the key ingredients for the success of a business. Of the three, business growth strategies have the most significant influence on the growth rate of a business.
Today the common growth strategies target improving Market Penetration, Market Expansion, Product Expansion, Alternative Channels, Sales, Customer System Management System, and Strategic partnerships’.
These are strategies of growing the market share, within the same market. The most common and effective way of achieving this is increasing competitiveness through the reduction of prices.
Leadership is another way of increasing market penetration. This leverages trust, and the internet provides a unique platform to achieve this. This is achieved by consistently sharing positive developments within your industry with customers, suppliers, and sellers. This creates authority and top-of-mind awareness for your business, which will grant you access to an entirely new segment of the market.
2. Market Expansion or Development
Market expansion or development is the selling or introduction of your products or services to new markets.
Franchising is one way of market entry into new
geographical markets. LandRover, Shell, Barclays, HSBC Bank; these some
examples of businesses that use this model.
This presents a challenge to all businesses regardless of size, but the risk can be significantly reduced by making use of Analytics. Analytics allows you to keep track of what is trending and possible emerging opportunities. Analytics allows businesses to use the information to better position themselves in the market.
3. Product Expansion
This means the introduction of a new product in the same
market. This generally is the addition of a new product to either a family of
products or a new product under a known brand.
This strategy is seen in the electronics, technology, and mobile phone industry. This strategy is carried out in the following way:
- Developing new products to add on to an existing product line.
- Addition of new features onto an existing product.
- Updating and replacing old or obsolete parts and features.
4. Alternative channels
The internet opens up completely new markets for all sizes of businesses. Products can be introduced to new markets through online selling. Services like Amazon FBA, Shopify, and Aliexpress, offer businesses a platform to sell in far off places such as India, China, Brazil, Australia, Germany, and many more.
Subscription programs are another way for businesses to sell their products. These membership programs are still prevalent in print media. Online subscriptions are also another way of selling services and content. Examples include:
- Streaming services like Netflix, Hulu, and others.
- Booksellers such as Kindle
- Online education platforms like Courser, W3Schoools, Alison.
Business growth and sales are directly related; an increase in sales increases growth. The common ways are:
- Increase your Website Traffic: the greater the audience, which views your offers and products, the greater your sales. Website traffic can be improved by improving the quality and Search Engine Optimization of your content. Advertising and digital marketing also may drive increased traffic to your site.
- Improve your Conversion Rate: out of the entire audience, that your business goes in front of each day ends up converting (actually buys something). Improving your conversion rate directly enhances sales. Conversion rates can be improved through performing A/B tests, improving business copy and product descriptions, and installing clear call-to-action buttons.
- Create Sales Funnels: a sales funnel is a system, which outlines a set of steps that customers take before buying a product. It shows you at which stage most customers change their mind. Additionally, if well crafted, sales funnels can be used to upsell those who convert and offer alternatives to those who do not. This increases the probability of additional conversions.
- Set the Stage for the Next Meeting: at every encounter whether it be face-to-face, via phone, fax, email, or any other media, we have the chance to prepare the groundwork for a sale in future. Success is not instant, and even when a sale falls through, do not miss the opportunity to set the stage for purchase in the future. Also, when you make the sale, do not forget to upsell, and make a follow-up. Always remember that the client can reorder, and is A possible lead to other clients.
6. Customer Relationship Management System
The function of a customer relationship management (CRM) system is the acquisition and retention of market share. A business can only grow if it can hold on to its customer base while it seeks and develops new ones. An efficient CRM system is indispensable for business growth and enables a firm to take certain risks with the assurance of a steady revenue stream.
7. Strategic Partnerships
Strategic partnerships are
another channel to drive growth. Strategic partnerships can take any for from
promoting each other’s products, licensing, sharing of technology, and many
We need to consider that
growth for any business is also a risk. Not all growth is good, and what is
critical is efficiency and delivering quality.