Businesses must use strategies if they want to rapidly expand their customer base and produce significant revenue from it. Here are 7 strategies you can use to grow your business in 2023:
1. Market Penetration
In order to sell your products/ services in places you haven't previously explored, market penetration is an effective strategy. It is one of the most popular sorts of corporate growth techniques. When a business expands its horizons in an already established market, there are two ways to go about it; Horizontal Market Penetration and Vertical Market Penetration.
Horizontal market penetration refers to a company's efforts to expand its brand name across a variety of items, boost advertising, or develop superior products. Vertical penetration refers to a company's decision to boost output, reduce costs, or develop new goods. Apple, McDonald's, and Kellogg's are just a few examples of businesses that have put their market penetration plans into practice.
2. Strategic Collaborations
Strategic relationships are one business growth strategy that isn't frequently used by many companies. However, collaborating with other businesses can result in tremendous development if done right. Choose a business to work with whose products and services blend well with your own. Both of your audiences will instantly double if you do it this way.
Through these strategic partnerships, you may successfully launch projects that would otherwise be too expensive or time-consuming to perform alone, enabling your organisation to expand effectively. Partnerships can develop when one business owner thinks they need additional talents to accomplish their objectives and find a company that has those skills and wants to collaborate with them.
3. Market Disruption
As a growth strategy, a brand that wants to stand out from the competition enters a well-established market and acts differently from its key players. Slack, an e-communications platform, attracted a lot of attention by replacing the outdated email system with one that is more useful for the working population.
Salesforce innovated to provide a cloud-based CRM at a time when top firms were selling software. The creative endeavour helped the business create an empire worth 21 billion dollars.
4. Product/ Service Diversification
Extending your consumer base can be another excellent strategy for boosting revenue. This strategy entails expanding into new markets or launching items in connected but unrelated industries in order to draw clients who may not be familiar with your firm. Businesses that foresee a slowdown or downturn in their primary market can benefit greatly from diversification. Product diversity is an additional approach to successful business growth. It entails creating brand-new products or giving new features to existing products features. This makes it easier to reach out to new audiences who may not have previously been interested in your business.
Semrush is a good illustration of a company that achieved success using this expansion strategy. When it first started, it solely provided paid search and SEO. It continued to gradually add a lot of capabilities throughout the years. For the same target market, the platform now provides a complete software suite. The company currently has a market value of nearly $2.7 billion.
5. Adopting New Channels
Finding and implementing new distribution channels for your products/ services is yet another successful business growth approach. This might spur the expansion of your business by utilising various marketing strategies to broaden your clientele and boost cash creation without altering your products.
All birds, a well-known e-commerce company is one of the successful brands in this area. They then began expanding their physical presence and currently operate 29 traditional stores. And as a result, they have gained new offline clients from numerous physical places, increasing their revenue.
6. Product Innovation
Product innovation is another eminent business growth strategy. Create innovations in that area that would simplify things and make it convenient for your users. Consider the example of Postmates, a US-based food-delivery service that had catered to 35,000 cities across the city and was the go-to service provider for 70% of US citizens until it was acquired by Uber in 2020.
Postmates succeeded by introducing an app for Shopify merchants where they can have anything delivered to them within 2 hours. This enabled many small businesses to get back to a new normal business life post-pandemic crisis.
7. Investing in Talent
The need of the hour is to hire people who are inspired and driven by your company's value proposition. Your people will have frequent interactions with your consumers. Be economical with your office furnishings, marketing spending, and holiday gatherings. Employ few people, but pay them well. In most cases, the top employees will remain even if their pay must be reduced during a lean moment.
Nonetheless, the process of creating a growth strategy is not universal. In reality, it would be stupid to base your strategy choices on the achievements of others because market conditions are constantly changing. Not that you can't learn from other businesses; but, following a predetermined blueprint mindlessly won't result in long-term success. A one-size-fits-all approach suggests hazy clues. But an effective plan is one that is specific. You'll keep your customers satisfied and satisfy their desires and needs when you customise your growth strategy for your company and customers, which will keep them coming back.