Dear Entrepreneurs and Business owners!!
After spending more than 15 years researching and helping clients grow their businesses, I have compiled a list of 40 generic growth strategies that can be applied across various industries.
To achieve the best results, I recommend taking a personalized approach when implementing these growth ideas.
Consider your unique business goals, target audience, and available resources to identify the strategies that will work best for you.
1. Increase market share by attracting new customers.
This business growth strategy focuses on acquiring new customers to increase the company’s share of the market by improving marketing and advertising efforts, and differentiating from competitors. The aim is to increase brand awareness, reach a wider audience, and convert potential customers, thereby increase the revenue.
Example: A clothing store can increase market share by advertising on social media and offering discounts to first-time customers.
2. Increase wallet share by offering supplementary products to cross-sell.
This strategy aims to increase the revenue earned from existing customers by offering them additional products or services that complement their existing purchases. This can be achieved by analysing the customer’s needs and preferences, and offering personalized recommendations that add value to their current purchase. The goal is to increase the customers overall spend, also known as “wallet share,” and create long-term loyalty by providing a comprehensive and convenient shopping experience.
Example: A shoe store can increase wallet share by selling shoe polish and other shoe care products.
3. Increase the transaction by offering supplementary products to up-sell:
The aim is to increase the value of a customer’s purchase by encouraging them to buy additional or higher-priced products or services at the point of sale. This can be achieved by offering premium items that enhance the customer’s original purchase, thereby increasing the overall transaction value.
Example, a car dealership could offer a more expensive model with advanced features and technology to a customer who initially expressed interest in a lower-priced car.
4. Expand to new geographies by taking your existing product to new locations.
Introduce an existing product or service to new geographic regions to reach new customers and increase revenue. This can be achieved by identifying new markets with a demand for the product or service and tailoring the offering to meet local needs and preferences. By expanding to new geographies, businesses can diversify their customer base, increase market share, and potentially unlock new revenue streams, thereby fueling growth and expansion.
Example: A software company can expand to new geographies by offering its product in different languages and adapting to local regulations.
5. Introduce new products to the existing market.
This can be achieved by identifying customer needs and preferences, analyzing market trends, and creating innovative products that meet those needs. By introducing new products to the existing market, businesses can expand their product portfolio, increase revenue streams, and capture additional market share.
Example: A coffee shop can introduce new types of coffee drinks or snacks to attract more customers.
6. Acquire other businesses that are synergistic to your growth plans.
This involves purchasing companies that have complementary products, services, or capabilities to accelerate growth and achieve strategic goals. This can be achieved by identifying companies that have synergies with the acquiring company, such as similar target markets, complementary products or services, or compatible technologies or distribution channels.
Example: A car manufacturer can acquire a battery company to increase its electric vehicle production.
7. Convert a product to a service.
This can be achieved by repackaging an existing product as a service, such as offering installation, maintenance, or repair services for the product. By converting a product to a service, businesses can create a recurring revenue stream,
Example: A company that manufactures and sells home security cameras. Instead of just selling the cameras as a product, they could also offer a subscription-based monitoring service that provides customers with 24/7 surveillance and alerts in case of any suspicious activity. By doing so, the company is transforming its product into a comprehensive home security service, creating a recurring revenue stream, and offering customers greater peace of mind.
8. If you have a product, convert it into a service.
The idea behind converting a product into a service is to offer your customers more options and flexibility in how they can access and use your product. By creating a service around your product, you’re essentially expanding your offerings and providing additional value to your customers.
Example – A company that sells car cleaning products could convert their product into a service by offering mobile car cleaning services where they come to customers’ homes or offices to clean their cars. This would provide a convenient and hassle-free option for customers who don’t have the time or resources to clean their own cars, while also allowing the company to expand their offerings and revenue streams.
9. Introduce new product variants with added features.
Introducing new product variants with added features involves expanding your product line to cater to different customer problems and provide additional value to customers. This may even help you to attract new customer segments.
Example : Let’s say you run a company that sells fitness trackers. Your current product line includes a basic model that tracks steps, calories burned, and sleep patterns. However, you notice that some customers are looking for more advanced features, such as heart rate monitoring and GPS tracking.
To address this, you could introduce a new product variant with added features, such as a fitness tracker with heart rate monitoring and GPS tracking capabilities. This would provide customers with a more comprehensive solution that meets their specific needs and preferences.
10. Offer products in different quantities to cater to different customer needs.
Offering products in different quantities to cater to different customer needs involves providing customers with flexibility in how much of a product they can purchase based on their requirement. If you have product at different quantities and price points, you can serve all the type of consumers like — the low, medium and heavy users
Example: A company that sells food products could offer their products in different quantities, such as single servings, family-sized portions, and bulk sizes. This would allow customers to purchase the amount of food they need, based on their family size or individual needs. It would also provide customers with more options to choose from, and could help to increase sales by appealing to a wider range of customers.
11. Form strategic alliances and partnerships with non-competing firms or individuals.
This can be an effective way to expand your reach and access new resources without spending a lot of money on advertising. The key rule is to choose a firm or individual who has access to your target market but do not compete with your business.
Example: A fashion boutique could partner with a makeup artist or hairstylist to offer styling services to customers, providing added value and convenience to both businesses’ clients.
12. Avoid customer churn using a delight budget.
To avoid customer churn, it’s important to have a budget for customer delight. While most companies allocate a budget for acquiring new customers, service-based businesses should consider setting aside funds to surprise and delight their existing customers.
Using this budget, you can offer perks such as waived fees or discounts on post-purchase services to exceed customer expectations and increase their loyalty to your brand. This can help you retain customers, boost referrals, and ultimately increase your bottom line.
Example: A subscription-based meal delivery service could set aside a portion of their budget for customer delight. They could use this budget to send a complimentary meal or snack to their customers on special occasions such as birthdays or holidays. They could also offer a loyalty discount or waive delivery fees for customers who have been with them for a certain period of time.
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About Me – I am a Marketing Strategy Consultant and Speaker dedicated to assisting entrepreneurs in growing their businesses and establishing powerful brands.
My new book ‘Mindful Marketing’ – a First-of-its-kind Cartoon Book to Master Modern Marketing is now available on Amazon.
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