As a business owner, you’ve probably heard that the majority (about 70 percent) of small businesses do not survive beyond the first five years. Do you want to make sure your company is not part of that group?
If so, then you need to learn ways to bolster your business and ensure it continues to grow and attract new customers over time. Are you unsure of where to begin when it comes to business growth? Listed below are seven effective strategies you ought to consider using in 2020.
Types of Growth Strategies
There are lots of ways that businesses can grow and thrive. The following are some of the most well-known and most effective growth strategies you might consider using:
Market penetration is all about selling products or services in a market in which a similar business (or several businesses) already exists. Your business could try to gain maximum market share by differentiating yourself with lower prices or additional features.
An example of market penetration is the introduction of Amazon Prime to compete with Netflix. Amazon Prime offers a lower monthly price that may attract more conservative spenders.
Market development focuses on introducing new customers to a business’s specific products or services. It often involves expanding into a foreign segment of the market.
An example of this is Starbucks selling its coffee beans in grocery stores. Before, they only sold them in their stores. Since expanding their market, though, they’ve been able to bring in new customers and grow their business as a result.
Sometimes, the best approach is to create a new product or service that doesn’t yet exist in your current market. Apple does this better than almost any brand out there, and people look forward all year to learning about the newest devices the luxury tech brand is introducing.
In addition to developing a brand new product or service, you can also practice this growth strategy in other ways. For example, by developing new features or improving upon an existing product or service.
Diversification combines principles of the product development strategy with the market development strategy. In addition to selling a new product, you’re also selling it in a new market.
This strategy is the most ambitious and risky of any growth strategy. When businesses do it well, though, (Amazon is a prime — pun intended — example) there are lots of opportunities to grow and profit.
Ways to Grow Your Business
Regardless of which type of growth strategy you’re using, these techniques can help you grow your audience and attract new customers (while also building loyalty among your existing customers). Consider these seven tactics today:
1. Customer Reviews
One of the best ways to grow your business, whether you want to expand into a new market or get people excited about a new product, is to get more customer reviews. Online reviews provide social proof and help to verify that your company is a legitimate one.
Look for ways to incentivize reviews so your customers are more eager to leave them. Consider hosting a drawing and letting reviews on various platforms count as entries, for example.
2. Augmented Reality
Augmented reality and virtual reality are the ways of the future. Many businesses are already using this technology to create a more personalized customer service experience, one that’s sure to help them win over large segments of the market and continue growing their brands.
Augmented and virtual reality are especially powerful tools when it comes to online shopping. It gives customers an opportunity to try things out and see how they look before they commit, which can lead to higher levels of satisfaction (and better reviews).
3. Improved Customer Service
Speaking of customers, make sure you’re providing the best customer service possible. This goes way beyond using augmented or virtual reality. It’s about responding to questions and concerns right away and making the shopping experience (both online and in-person) as positive as possible.
When customers are treated well by a business, they go on to tell other consumers about that treatment. This, in turn, gets more people in your door and interested in what you’re selling.
4. Increased Workforce
Sometimes, you need to bring new people into your business’s workforce. New workers can provide new ideas and creative insights into the right way to go about solving specific problems.
Whether you hire new employees to assist with marketing or product development, fresh blood can often be exactly what you need to give your business a boost and help it grow. Just be sure to take note of your budget and avoid bringing on more people than you can support long-term.
5. Targeted Marketing Campaigns
The right marketing strategy can work wonders for businesses looking to experience sustained growth. Work on creating marketing campaigns directed toward your target audience. Try to reach them where they are, especially when it comes to social media marketing.
6. Reducing or Increasing Prices
Price changes can have a big impact on your customers, too. In some cases, lowering your prices is the right strategy, as it can bring people over from a competitor and get them more interested in what you provide.
Raising prices can work in your favor, too. The key is to be clear about what people are getting in exchange for this new higher price and ensure it’s worth their while.
7. Document Automation
The more processes you can automate at your business, the more opportunities you have to focus on growth. Adopting strategies like document automation will help you to get more done in a more efficient way. This frees you and your workers up to be more creative and spend more time developing ways to keep the business growing.
Try These Business Growth Strategies Today
Now that you know more about what it takes to grow a business, are you ready to get to work? Keep these seven business growth strategies in mind and give one (or more) of them a try today.
Don’t forget to check out the other business resources available on our site as well. We have lots of great articles that can help you keep your company running and ensure you see long-term growth in the years to come.