Starting a business can be very exciting and very rewarding. However, its estimated that 20% of businesses fail after year one. It is important as the business owner to create the growth strategy for your business. At the end of the day, the strategy is your responsibility. Keep in mind that a growth strategy that works well for one business won’t necessarily repeat that success in another. Keeping that in mind we suggest that you should look at these two key areas if you want to grow. Customer base & Distribution Channel diversity. Below are some ideas on how you might be able to accomplish both. However, if these are not a good fit for you, don’t worry. You can find additional strategies and advice about growing your business on our website at www.mcdaccginc.com/services.
1. Produce Visibility
This focuses on customer growth as a marketing strategy. This is a critical process for early stage businesses as they are working to spread their services amongst their target audience and grow their reputation. As you start your business it is very likely that you have many potential customers who aren’t aware of your business because you are not marketing on the channels where they spend their time. This strategy helps you create brand awareness to target the areas of low brand awareness and target that potential customer base.
To do so, you can explore the right marketing channels for your business, this could be billboards, attending PR Events, or if your customer base is mainly online, focusing on SEO content strategies. There are many paid online advertising strategies depending on what type of budget you are working with as well. The main take away here is to focus resources on places that your customers are.
2. Growth in New Markets
This strategy focuses on getting in front of a new audience by expanding where your product or service is offered. Meaning the opportunity for customer growth lies in a new market. This strategy is mainly for businesses who have already established themselves and built a reputation within their local market. This may mean taking your business from local to national or national to global. A crucial component to this strategy is to be able to engage with those customers in the right way once you’re there and utilizing resources in those areas familiar with marketing those new territories.
3. Build Distribution Channels
For early stage businesses, this is a path they often go down if they are looking for more avenues where they can sell their product. The idea is simple: the more distribution channels you have, the more products you can sell. Think about it as if you’ve just started an online retail brand. You have a website but you’re not getting enough traffic to sell enough units. Setting up a shop on Etsy, Ebay or Amazon might be a solution to increase your sales as they have lots of traffic. By selling through these websites, you would have grown a distribution channel.
Similarly, if you are a B2B business, you might consider partnerships with brands in your space that align with yours and grow sales by accessing each other’s customer base. It is important when you look to build your distribution channels to do a cost/benefit analysis to ensure they aren’t too expensive so they offset any sales you make, and make sure they reach a large chunk of your target audience. They have to be worth your while.
4. Expand Product Offerings
The final strategy is another product/service-led strategy, but this time for more established businesses. It involves expanding your offerings beyond your current capabilities. This may be a good option for you if the size of your market is small or saturated, and there is little opportunity for growth beyond the customers you already have. What new products or services can you create based on your original idea? Can you upgrade what’s existing? It’s usually best to execute this strategy once you’ve built a good reputation and perfected what you’ve already got. That will give you the legitimacy and authority you need to engage seriously with your target audience on new offerings. An added benefit is that it gives your customers freshness and keeps your business top of their minds. An example of a company that has done this incredibly effectively is Amazon – originally starting out as an online bookstore, it diversified its offerings into areas like SaaS cloud management and now even groceries!
If you are looking to grow your business and would like to explore how MCDA CCG, Inc. can help, please call us today for a no-obligation consultation with our experience marketing team. We can quickly help you establish a cost effective marketing solution that will grow your customer base and bring brand awareness to new distribution channels skyrocketing your revenues! Why wait, call us today!