Six Powerful Business Growth Strategies
Successful business expansion is easier said than done. Many businesses of all sizes encounter difficulties as they try to expand. For new and small enterprises, it is much more challenging.
Only 50% of enterprises survive for more than five years, and 20% of new businesses collapse within the first two years of operation.
Your firm can have trouble taking off without a well-defined and doable plan for expansion.
As a result, you should concentrate on developing a clear growth strategy for your company. The following are the top six strategies that you need to include in your overall growth strategy:
1. Business Forecasting
You may predict business KPIs like sales, expenses, profits, and losses by using business forecasting.
Utilizing both quantitative and qualitative methods, business forecasting is done.
A long-term strategy, quantitative forecasting only works with quantifiable information like statistics and past data. It makes advantage of prior performance to discover changing trends.
Trend analysis, econometric modeling, and indicator method are examples of quantitative techniques. Once understood, trend analysis can be utilized successfully for business forecasting.
Comparably, qualitative forecasting is concerned with creating forecasts for the near future based on the theories of industry specialists. When there is insufficient historical data to draw conclusions that are statistically meaningful, it is incredibly helpful.
2. Data Analysis
A data-driven strategy assists organizations in enhancing their marketing tactics by shortening the purchase cycle, enhancing CLV, and raising ROI.
Businesses can utilize data analysis to develop data-driven strategies for strategic decision-making that are based on data collection, analysis, interpretation, and insights. This information can be used to create specialized and personalised offerings.
Machine learning is revolutionizing the way businesses utilize data to spur profitable growth, giving early adopters a unique chance to outperform their rivals, as many top players already are.
As a result, you want to think about employing marketing analytics-trained grads who can develop efficient plans for data collection, analysis, and implementation for your company.
3. HR Management
A poor HR management plan could obstruct healthy corporate growth. As a result, you should always prioritize HR’s contribution to corporate expansion.
The following are some of the most effective HR tactics:
- Hire the right people leveraging an efficient recruitment process.
- Build a strong company culture where employees can learn and grow.
- Use HR management platforms such as PeopleHum which uses AI and automation to drive powerful business results.
- Train new candidates and conduct growth planning sessions.
- Measure the performance of your employees.
- Take employee feedback to optimize your existing HR processes and policies.
A strong and efficient HR team aids in attracting the best candidates and preserving valued employees to support business expansion.
4. Market Segmentation
Market segmentation is another growth tactic. It all comes down to segmenting your market into various groups based on consumer preferences, interests, geographic locations, and other factors.
The segments that are most typical are:
- Geographic, including city, state, region, or country.
- Demographics, such as age, family size, life cycle, and occupation.
- Behavioral, such as knowledge, product usage, or consumer attitudes.
- Psychographic, including lifestyle, values, and personality.
You may design tailored campaigns with a far higher likelihood of success by using market segmentation. Having a wide selection of goods or services is quite advantageous.
Capture customer information using email surveys, purchase histories, and website analytics to uncover trends in the behavioral traits of your current customers. This will help you segment your market more effectively. Integrating marketing automation technologies to streamline your segmentation process is another effective strategy for segmenting your market.
You may build more focused advertisements to draw in potential clients once you identify the market segments for each of your product categories.
As a result, market segmentation aids in improving customer retention, user experience optimization, market expansion, and consumer knowledge.
5. Digital Marketing
Businesses must use digital marketing to concentrate on digital channels and devices due to the rise in online customer presence and technological breakthroughs like AI and machine learning.
Internet-based digital technologies, IoT, and other digital platforms are used in digital marketing to promote your goods and services.
Businesses may spread a brand message through digital marketing tools and tactics, which helps them remain competitive and see considerable growth in their company.
These are some common methods:
- Search engine optimization: It helps you to generate more traffic to your website by ensuring that it ranks higher in the results of a search engine. SEO is challenging and therefore you should take the help of a professional SEO agency to promote your site. However, not all SEO companies are the same. Hence, you should take careful consideration when hiring an SEO agency to promote your business.
- Content marketing: It is about creating valuable and relevant content consistently on digital platforms.
- Email marketing: It enables a company to get users to sign up for an email list and drive them to your brand and purchase new products.
- Social media marketing: It can be used to distribute paid ads and sponsored content to the target audience. You can also use influencer marketing to reach the right audience by partnering with the relevant influencers.
- Video marketing: You can create quality commercials to have a lasting brand image in your audience heads and drive them to purchase your products and services.
6. Use Multi-Channels
One of the best ways to expand your business is to use multiple channels.
The top three marketing avenues you should employ
- Email marketing: Email marketing helps create more awareness for your brand, expand your customer base, and build customer trust and loyalty. You can use different email formats, such as email newsletters, promotional emails, loyalty program emails, seasonal messages, transactional emails, and drip campaigns. Some of the best practices you follow are to get the frequency right, craft compelling subject lines, make text scannable, and personalise your email messages.
- Social media: The rapid adoption of social media platforms, such as Instagram, Facebook, YouTube, or Twitter, by consumers makes it nearly impossible for businesses to ignore these platforms. Identify the right social media that suits your business and focus on creating user-generated content, targeted advertising, and partnering with influencers to promote your business, products, and services. For instance, Lines.com shares sports videos on their Facebook profile to connect with their followers.
- Business websites: Create a website to present your products and services online and gain national or international reach. It is better to have both an offline and online presence to grow your business. Ensure that you provide contact details, such as location and contact number, to make it easier for customers to reach you.
A few other channels that you can use are Google Ads, remarketing, video content, influencer marketing, and SEO.
You must effectively invest time and money in implementing new growth tactics if you want to expand your company and succeed. Apply the six tactics listed above, and make sure they are in line with the demands of your particular organization.
Create an effective business growth strategy by determining what works best for the particular type of business you own.
Contact MCDA CCG, Inc if you have any questions on how to expand your business!