You can grow in these four ways:
- Provide more of your core products and services to your current customers.
- Create new products, services and experiences for your current customers.
- Find new customers for your current products, services and experiences.
- Create new products, services and experiences for new customers.
Provide more of your core products and services to your current customers.
Basically, the aim is to increase the number of sales for each of your customers. What can you do to make each customer buy more products? You can give volume discounts to large customers (buy more strategy) or introduce loyalty programs (buy often strategy). The major supermarkets use this continually: Buy 2 get 1 free, but there’s a multitude of ways to achieve this. What’s more, according to research by Frederick Reichheld found that a 5% increase in retention (of the right customers) can produce as much as a 125% increase in profit. As a result, this strategy is often overlooked but should be the most effective ways to grow your sales profitably.
Create new products, services and experiences for your current customers.
Introduce new products and services that are an extension or aligned with your current products or services. Again, there are many ways to achieve this, but they tend fall into two main ways. First you can introduce a new or improved product or service in the current market. No matter that the iPhone 5 is a great smartphone, people want the newer version iPhone 5S, even though the difference is difficult to identify. Secondly, you can introduce a completely new product for a completely new market. iSelect have built a business around comparing health insurance, so it’s not a complete stretch for them to use the same processes and setup to deliver the same service for life insurance.
Find new customers for your current products, services and experiences.
Steal customers from competitors. This is how most people see marketing and advertising: you’re looking to acquire customers from other competitors in your industry. Lead Generation campaigns, price cutting, promotional offers or raising the awareness of your value proposition to a wider audience are a number of ways to achieve this, but each depends on your industry and a range of other external factors. Focusing on this way to grow your business is often the most expensive and the least leveraged. It costs up to 6 times more to win a new customer than it does to have an existing client do more work with you and that directly affects your profit potential.
Create new products, services and experiences for new customers (create a new business).
Expand in to new markets. A new market could mean a new geographical area, outside of where you currently caters too. Alternatively you can tap into potential customers within your own geographical boundaries by expanding distribution channels. Many retailers have taken their business and proposition online where they can target a whole new audience that is impossible for a traditional brick & mortar store. Again, the potentials are numerous: traditionally gender specific domains such as gaming and cosmetics are now targeting the opposite sex to boost sales and can also be a form of expansion within the same geographical market.
Need help from a marketing consultant with your b2b marketing or lead generation campaigns? The Lead Agency has over 15 years experience in b2b marketing strategies and lead generation campaigns. We know that best results are based on building great marketing conversations. The more you engage and communicate with your customers and prospects, the more likely they will understand, need and value what you offer.