What is Growth Strategy
A complete and effective growth strategy includes several factors, including:
- Business goals
- Offered products
- Tactics for growth goals
Types of Business Growth Strategies
- Market Penetration
- Market penetration includes selling your pre-existing products to the current market.
- Market Expansion
- Market expansion means selling your existing products in a new market.
- Product Expansion
- Product expansion is when you expand or redesign your product line.
- Diversification is when you sell new products into a new market.
- Acquisition is when you buy a controlling interest in an already existing company.
6 Growth Strategy Tips
- Set Clear Goals
- You do not know what you are working toward if you do not set clear goals. It is beneficial to start with high-level goals. These goals focus on where your company will be in 5-10 years or how many employees you want to hire. From these large goals, you will work backward and set smaller goals to achieve to reach your larger goals.
- Talk To The Right Customers
- Receiving feedback from customers is valuable. Although it may seem reasonable to have a wide range of feedback, it is more helpful to focus on connecting with the customers who are happy with your business. Taking time to interact with your best-fit customers one-on-one is the best way to receive the most valuable feedback.
- Ask Customers The Right Questions
- It is essential to remember that you do not want the customer to tell you the solution to their problem. You want them to expand on what they are doing and how they feel throughout their decision-making and purchasing process.
- Create a Customer Experience Map
- Creating a map of your customers’ tendencies in their buying experience is a great way to understand the gaps in your offerings and what the customers need from your business.
- Focus On The Right Key Performance Indicators (KPIs)
- KPIs help you navigate through how your product is connecting with consumers. They allow you to see which strategies are working and which are not.
- Execute, Test, and Iterate
- Once you complete your goal setting, researching, and planning, you can implement your growth strategy. Just because you launched your growth strategy does not mean there will not need to be adjustments made along the way. Regularly check your progress towards your KPIs and make changes if necessary.