Your growth strategy could not just be defined in one statement!
In order to be the one of the one-tenth of 1 percent of organisations which reach $250 million in annual revenue, your business needs to be better streamlined with the help of more concrete as well as better growth strategy for business.
According to the definition of growth strategy “A growth strategy is a plan of action to increase a business's market share. If your company is looking to expand, a market growth strategy will enable you to chart your path to expansion, taking into account your industry, your target market, and your finances.”
In order understand the high-level business growth strategies let us have a look at the Ansoff Matrix:
Does your organization focus on these factors?
Are these goals inspiring enough for you as well?
If yes, then let us find the method to create one for your brand as well.
Answering these questions make it easy for you to analyse your long-term goal and the actual state of your business life cycle. In case you have just started with your brand or organisation it is important that you focus on customer acquisition. In case you want to expand your business at B2B level you need to make sure that you're working on sales and try to do direct marketing.
Make sure you make realistic goals and try to put them in smaller milestones. This helps you set smaller goals for a shorter duration, which when achieved can cumulatively add to the long-term goal.
Once you know about your long term goals the next step would be estimating your key performance indicators (KPIs). For every small term goal, it is important to analyse the performance indicators as well as the results. It helps you understand whether or not you are hitting your long-term goal perfectly. In case you see some differences, it is advisable to make sure that you revisit your KPIs, find ways to make them work in your favour and that they do add to the profitability of a business.
The key performance indicators have a direct role to play when it comes to a company's revenue and customer retention. Hence make sure you make no mistake when it comes to deciding the KPIs or Key metric for your business. It makes it easier for you to analyse and work only on those aspects.
After analysing more about your short term goals, it is important to analyse your long term goals as well. This can be done with certain metrics and they are known as OKRs or Objective Key Results. There are various methods which could be followed to set or know your OKRs. However one of the most common methods used across most of the organisation is the AARRR framework.
It is important that you create a growth model to forecast the results of your business growth strategies and set up some growth experiments to understand how it works. Along with that, when you are forecasting models, it is important that you don't follow the ‘Waterfall model’. There are several reasons why you should not be following waterfalls. One of the most important reasons could be that with waterfalling in case of addition of new requirements, you might not be able to proceed with the same and your forecasting model might fail.
Once you have worked on both your long term as well as short terms goals analysis and factors affecting them. You can now work on actionable steps. Your business can identify tactics which can help in achieving the objectives. You might need a go-to -market strategy in case you are planning to launch a new product. On the other hand when customer growth is your sole motive, your actionable steps might include working on CRM software such that managing customer relations becomes effortless.
Once you have identified the steps you need to plan your course of action such that your growth strategy for business becomes concrete.
Growing up into a profitable business is a long term goal, however what you need to focus right now could be your target audience. You need to understand what exactly needs to be focused in order to grow. Specific areas of growth to be focused such that your business growth strategy could be worked unidirectionally.
Once you have understood your target audience, it is important that you understand the market and industry you want to work in. In case you are new business it is advisable to spend a substantial amount of time researching your market and industry before you plan any of the marketing strategies. However if you are an already existing business you could still invest some time and research more and more about your market and industry such that you stand out.
Knowing your market helps you determine what is necessary and feasible to stay in the competition and gradually outcome it. There are many ways one can individually research about the market and industry or even conduct some surveys or study to know more about your potential as well as existing customers. The understanding which you gain by this process helps in shaping the expectations and making your growth strategies form with milestones such as timeline budget as well as long-term goal.
With the above mentioned step you will be able to estimate what and where you need to focus in order to add to your growth and after that the next step could be about determining how much you will grow in future compared to what you have done in the past and aspirations what you really want your organisation to turn into, matters the most when you set your goals. These goals should be realistic, achievable and based on industry research as well as target audiences. It is important that you give numbers to your estimates and a deadline in order to achieve it.
After defining your growth goals it is important to understand your requirements such as your team tools in the process. Some specific resources could make you efficient and effective in helping you meet your long term goals faster as well as accurately.
let's talk about them in detail:
Funding: Your business might need a capital investment as a whole. This needs to be bifurcated into internal budget allocations to make sure that sufficient funds are given to the priority departments.
Softwares in technical tools: Technical resources are high water when it comes to executing the growth Strategies for businesses. They not just help you be efficient but also are very important to gain insights when it comes to measuring the growth process.
Service: With the help of the right team of designers, consultants, planners, digital marketers your growth could be achieved in a better way. They not just help you plan things better but also add to efficient growth.
Proper planning, understanding the resources in setting the right goal when you are done with the process with these steps your company’s growth plan is ready to be executed. The results which are delivered hence need to be measured and analysed at a regular interval.
This would further help in client acquisition and client retention. When it comes to client retention, referral from good customers service plays an important role. Apart from that, when it comes to team building it is important that you train your employees, work on your organisation culture to keep a competitive edge.
Let us talk about each of these business growth strategies in detail:
Some of the business growth strategies are self-sufficient. The only thing which they need is an initial push. These growth strategies depend on the enthusiasm of the customer base in case it meets the requirement of customers there to start a viral chain. This type of business growth strategy is known as a viral loop. There are several examples of viral loops, one such example could be a user trying your service or product is happy with the results and shares them forward. Others too accept it and find it valuable, in turn, your brand receives a new customer base. These customers share your service or product and the loop continues. One important aspect of viral loops is considering the fact that the traditional funnel or the marketing funnel turns upside down. The viral load funnel starts with just one user and goes to unlimited numbers at the end of the funnel.
The milestone referral model is quite similar to the viral loop model, however, apart from the kick start and sustain. And there are a few important steps in this model, when it comes to delivering any of the two models brands can expect profitability. Viral loops, however, generally witness flat and consistent offers on the other hand milestone Referral models are known to hit specific benchmarks. The milestone referral model has great value to the referral process and hence it is an important engaging element. The whole process makes it easier and straightforward to share the objective and tangible products as a reward.
Word-of-mouth business growth strategy is one of the most organic and effective types of growth strategy. It includes recommendations from family and friends to other customers in their circle. This could involve recommendations to try a new product or even buy something new.
Word of mouth is basically based on the psychological impact which humans generally have and the trust they have in their friends and families. The major role in such strategies is played by the effective and impactful content copies. It helps in establishing a concrete social media image and an online reputation of the brand.
The brands could easily leverage the importance of family and friends and the bond that they share with prospective customers.
In today's world, it is not just possible to convey your brand message to the audiences with nearly a blog post or an informative article however, it is important to reach them in every possible manner and through various diversified social media online as well as offline channels. This not just divides your effort, but also increases the impact of your efforts by many folds.
According to one of the famous persons in the digital world, Pete Blackshaw who is considered to be the father of digital word-of-mouth growth, it is believed that a satisfied customer tells three friends and an angry customer tells 3000!
Not just that, it also adds to the positive User experience. When a brand receives positive & loyal feedback from the customers, it is obvious that they are soon going to grow a base of satisfied customers and add more to the chain.
As a brand, you simply have to focus on producing and delivering the best products and services to your customers and it is the responsibility of the user base to spread the word for you.
When you are unique, you become noticeable and this could be a great advantage for your business. To overpower the monotony needs to be broken down and this can only be achieved with new ideas to help your business as well as build your brand. For example, when everybody in your domain is launching an application and providing similar kinds of features, the users might become a little frustrated as to whom to choose. However you have the lead in case you add an ad-free version for free or maybe give some free rewards or features which are exclusive to your application, your brand is going to stand out with such approaches. This could help you gain the attention of your audience or even somebody who has not even known you for these many years. They could become a part of your customer base soon.
This approach could not be directly employed and, it needs some time and effort. The end result is so fascinating that it is worth mentioning. The human element when added to the growth strategy can set motions for your business growth. Face-to-face interaction makes a permanent impact when it comes to receptiveness at a personal level. Certain examples could be hosting sponsoring of events, being part of important conferences pertinent to your business or industry, hiring brand ambassadors who are renowned, reaching out to the target demographic audiences in a different manner, and many more.
If we talk technically there are various types of growth strategies that are based on different Research and studies and some of them are even crafted by some social media experts or the entrepreneurs themselves.
Here we have tried to list different types of growth strategies, which could work for you. Let us have a look at these classical growth strategies and see if they could be of any use to you:
The end result which is expected from these business growth strategies is to achieve new customer acquisition and make sure that the old ones are able to retain. In order to achieve better growth and profitability, long-term association with a loyal customer base along with the addition of new customers is required.
None of the growth strategies have worked miracles for the organisations overnight. It is the long term goals, endless dedication, and impactful strategies to stand out of the competition, which makes a difference. It could be a single feature in your product or a whole new strategy to engage new customers! The choice is yours as to which type of growth strategy you want to follow.
It is important that you pay attention to what your users are looking for in terms of products or services. This would help you come out with a durable growth strategy which you have developed for your organisation however, you could always go back and take the help and example of the business and industry leaders.
Great organisations not only work on ‘how to develop best growth strategies”, rather they focus on “how to follow the plan which has been developed!”