Is constant growth an unattainable target? Some might say it is, and they’re likely right. It would be unrealistic to think your company will be in a perpetual state of growth. Similar to nature’s seasons, there will be periods when you retreat and times when you spring forward.
Regardless of what “season” you’re in, you’ll want to strategize about ways to unlock your company’s growth potential. Getting started is a heck of a lot easier if your team has some tips by its side. Below are four approaches to seriously consider.
1. Invest in Thought Leadership
Building brand credibility in a world of skeptic consumers isn’t going to happen with traditional advertising. Most people are conditioned to question the message and tune it out, even if it’s funny or captivating. It’s why people pay a premium for ad-free options on streaming platforms. For many, ads are simply background noise at best and a frustrating annoyance at worst.
Creating a polished website with stunning images and engaging copy doesn’t always cut it either. Yes, it can help attract and keep audiences. But when it comes down to it, a website can’t always demonstrate why consumers should trust what you say. Yet, thought leadership has the power to build brand credibility, visibility, and authority.
Naturally, developing thought leadership isn’t like an overnight success story. It takes some navel-gazing, a plan, and insight from a team of experts. There’s some trial and error in there, too. However, partnering with an online growth agency can save a few (or a bunch) of headaches on the way. Together, you’ll discover opportunities to stand out by developing topical expertise so audiences see your brand as their go-to.
2. Determine Perceived Value
Price is one of the motivations behind customers’ buying patterns. Factors like inflation can lead to an increase in price sensitivity. The data from October 2021 to April 2022 shows nearly 50% of U.S. consumers said they have become more price-sensitive. While price does influence how consumers perceive a product’s value, price is not the value itself.
Perceived value has more to do with the tangibles and intangibles customers give to get your product. What are they trading in exchange for using your products and services? Moreover, what are they giving up and receiving when they engage with your brand? A price point is only one piece of the perceived value pie.
To unlock your company’s growth potential, you ought to know how audiences think about your brand’s value. Where does it come from? It could be a reputation for excellence in service and quality. But it could also be an association with prestige or uniqueness, which would lead to a premium pricing strategy. Determining your brand’s perceived value will reveal where and how you can expand with new or existing audiences.
3. Reduce Churn
On the surface, reducing churn seems like a no-brainer. No company wants more customers going out the door than the percentage coming in. While churn rates vary by industry, the sweet spot for established companies is between 5% and 7% each year. Yes, you will have churn no matter what. The key is to keep the good apples while letting the bad ones go.
First, you’ll want to focus on why “good apples” leave. These are your customers with high lifetime values. A client’s lifetime value typically represents the amount of revenue they’ll bring to your brand throughout the relationship. Since each customer will have a different lifetime value, it helps to determine acceptable and target thresholds.
An acceptable lifetime value might be $5,000 in one year. Your target threshold will be higher — say $10,000 annually. Customers with high lifetime values will meet or (ideally) exceed this target. If you can increase your retention rates among this group of clients, you’ll boost your chances for growth. Simultaneously, you can aim to maintain tolerable churn rates among customers with acceptable lifetime values.
4. Evolve and Innovate Product Lines
If there’s a sure thing about consumers, it’s that their needs and preferences will change. Think about your buying habits. Have they stayed the same throughout your lifetime? You might still love a few of the same foods you did as a teenager. But you probably don’t feel as much of a pull to consume the exact diet you did back then.
Likewise, the car you wanted at 16 might look nothing like the vehicle you need with a growing family. Shifts in consumer preferences due to new research, lifestyles, and environments mean stagnant brands can get left in the dust. While it doesn’t always make sense to introduce something new for the sake of it, growth can come from pivoting.
Paying attention to market trends and changes reveals expansion opportunities brands may want to leverage. These evolvements can help your company come up with new products and services or change existing ones for the better. You can’t grow if what you offer is out of alignment with what customers need. Remain open to pivoting quickly, slowly, or somewhere in between.
Tapping Your Company’s Growth Potential
Survival of the fittest is the reality of a competitive business environment. And achieving sustainable growth over time is essential to your company’s survival. So, it makes sense for leaders to constantly look for ways to tap into an organization’s growth potential. It doesn’t matter whether you’re in hibernation or expansion mode. What matters is using approaches that will uncover the most promising possibilities for your brand.