Growing your business

All businesses should have a growth target each year – without that your business is likely to stagnate. But what can you do if you have challenging growth targets to meet? This article draws on three videos (links below) looking at the topic of revenue growth through different methods.

Client retention

One of the most important business performance indicators that measures customer satisfaction is client retention. Happy customers buy again and again; unhappy ones take their business elsewhere. If you have a high client retention rate, there will be reduced need to constantly generate new leads. So, the focus should be on making sure you are providing the best possible service to existing clients.

During the first pandemic lockdown, I worked closely with my clients to help them focus on retaining and delighting their existing clients. One of my retail clients contacted all their existing clients to make sure they knew they were being looked after. In addition, my client ring-fenced a certain amount of stock for them so the customers knew they could rely on their supplier.

Another client sent handwritten letters to all their clients saying, ‘We are here for you if there is anything specific you need, just let us know. We are here to support you’ which was extremely well received by the customers. Focusing on your key clients is vital for ensuring that efforts are going to the places which delivers the most value for your business.

This is the Pareto principle which states that 80% of your revenue will come from 20% of your clients; these are the ones you need to be really looking after;  go over and above, to make sure you are doing everything you can to help them and make sure you are listening to their needs because this is what will help to drive your revenues up.

Marketing messages

When the world of business is experiencing substantial change in a short timeframe such as during the COVID pandemic, the companies that do well are able to make a shift in their marketing approach, adjust their marketing messages and address the following questions:

·       What is going to be relevant to people right now?

·       What is going to resonate with them with what you are trying to market?

One of my clients who sells DIY tools was marketing as before. Tools are tools. However, I was trying to think of another angle that would resonate with people who were spending more time at home during the lockdowns. He adjusted his message to:

You have got more time, how about trying to fix the shelf you have been putting off for a long time and maybe other DIY jobs? Have you thought about doing something in your garden?

This is a softer message, but it worked because it was relevant and resonated with his customers’ situation. Good marketing is always about meeting your client where they are at. Churning out the same old message may not work when the environment has shifted. You must also shift your message to fit the new circumstances.

One thing I would advise my clients against is to stop marketing when times are tough. Many businesses stopped marketing overnight when lockdown hit because they were concerned about controlling costs but that is a very short-term approach. If you are to survive a crisis, you need to market your way through it, so you are still visible in your marketplace when the crisis has passed. You must continue your marketing but be compassionate and change your messaging,

Get to know your numbers so you can make good decisions on where you are spending your marketing budget.

·       What are you spending on your marketing and is it working?

·       Where are you getting your leads?

·       Are you getting good quality leads?

·       Are you testing and measuring the quality of your leads?

·       What is your conversion rate?

·       What are people on average paying for your products?

·       How often do they buy from you and what are your margins?

If you look at these numbers in detail and look at them regularly, you can have a very targeted marketing campaign.

 Organic and inorganic business growth

The usual way of growing a business is in an organic way, which is sustainable, but there is an alternative – inorganic growth, which can also be sustainable.

When businesses grow organically, typically they will focus on:

·       how to increase their turnover,

·       how to increase their profits,

·       what marketing strategies shall we implement,

·       what sales strategies should we implement?

Alternatively, if you want to grow your business more quickly, you could consider an acquisition or merger with another synergistic business. During 2020, many businesses were struggling so there were more opportunities for businesses to merger with or acquire the business of their competitors. Often this is a new area of growth potential for many business owners because they have not considered inorganic growth opportunities before, having been focused on organic growth which is a long-term sustainable way of growing a business.

If you are considering an acquisition or merger as a growth method, it is vital to ensure the target is a strategic fit for your business. There is no point in acquiring something for the sake of it, even if it is in the same market. If the business model does not align and it is not going to be seamless once you acquire, this is unlikely to be a good long-term opportunity. But it is something that should be on the radar of a lot of business owners and businesses. It is something that should be in their long-term strategy.

If your business growth has plateaued recently and you would like to have a sounding board to discuss potential options for increasing growth, I can provide a safe place to discuss ideas. You can email me on [email protected] or message me on LinkedIn.

#growth #marketing #business