When you think of Google, Facebook and Microsoft, the terms “small” or “medium” aren’t usually what comes to mind. But not so long ago, these tech giants once held this title and struggled to find their way out of it. So, what did these companies do differently to set them up apart from the rest? It was all in the application of smart growth strategies. Read on to find out what your business needs to achieve success.
1. Market Segmentation
Under market segmentation, businesses begin by dividing the market into segments defined by customer needs. Consider factors such as demographics, customer behavior, and the geographical locations of your target audience. After this, identify which segment identifies most with your business goals. It can be educational institutions in need of customer relationship management services, nonprofit organizations interested in management software, or CEOs in their 20’s looking for fun and interactive software for their audiences.
Next, identify the gaps in each segment and what your organization can bring to the market. By doing so, you allow your customers’ needs to dictate your products, which means you will hardly run out of clients.
2. Build New Partnerships
Partnerships may seem like a growth strategy set aside for big companies, but it can provide benefits for start-ups alike. Leveraging partnerships will first require you to identify areas that may be acting as a hindrance to your growth. After this, consider how your business prospects can help.
Suppose you have outstanding services to showcase but have insufficient infrastructure that may be causing downtime. In this case, a partnership will allow you to work with skilled partners with excellent infrastructure. A new partnership can also help expand your financial resources where they are lacking. The benefit of this is that it will allow you to cut down on costs while increasing the efficiency needed for your company’s growth.
3. Market Development
Market development is one of the growth strategies that are most useful when your business faces stiff competition challenges. In this scenario, market development requires you to reassess other uses of your product. An example would be software that functions both as a collaboration tool and a payroll processing solution. If your market only catered to the first-mentioned solution, it may be worth it to look into customers who may need the second solution. This gives you the chance to expand into new territories that you may have otherwise not considered.
But before fully structuring your business for a new market, it is crucial first to research your new territory. Understand what works well with your new audience, from their needs and preferences to the kind of gaps in your projected new market share. It will help cut down any challenges that may arise afterward..
4. Identify Alternative Channels for Outreach
With the internet currently acting as an open marketplace, start-ups now have a fair chance to compete against industry giants. To make this work for you, identify alternative ways to reach out to your customers and sell to them directly. Some of the avenues that you can utilize here include.
Mobile App Sales
With the average consumer using their mobile phone now more than ever, this may be the ideal place to market your products. Consider applications that are likely to be used regularly with your customers and advertise your services on these platforms. The increased use of mobile transactions also gives way to a fast and effective transaction process, a tool that can help elevate your business to new levels.
Subscription and membership programs are also another way that small businesses can achieve growth. Here, you can target clients in need of superior services and charge a given fee or offer customized packages in the form of subscriptions to your target audience.
Other channels to help with your growth can be found in these start-up revenue models like advertising based and pay per use revenue models.
5. Market Penetration
Market penetration is one of the most used growth strategies for companies looking to venture into existing markets flooded with similar products. If operating in such a field, you need to identify the most enticing way to pull your target audience to allow you to enjoy a part of the market share. Some of the ways you can do this include.
Reducing Your Prices
In a market where there is low price differentiation, reducing your price will help you attract customers who prefer lower-priced services or products. By setting yourself apart from your competitors, you will likely establish a competitive edge, allowing you to have a say in your products’ price regulation.
Introducing Promotions for Your Services
Advertising is great, but how else can you differentiate yourself from your competitors? By giving offers and discounts, an aspect which few companies do in the tech world. For instance, you can offer a month of free SaaS services for the first 5 customers to sign up for any of your packages. Offers mean that your customers can try out your products for a longer time without having to worry about additional costs. The benefit of this is that you are likely to attract passive customers who may not have otherwise paid attention to your products.
6. Targeting Your Competitors’ Customers
This may seem like a bold move for new companies, but it is one that can help you gain a significant portion of the market share over time. To pull this off successfully, you would need to offer a better deal, such as the previously mentioned promotions and offers. You can also research your competitors’ shortcomings and capitalize on providing superior services free from your competitor’s weaknesses.
The Right Growth Strategy Makes All the Difference
Part of business growth is about identifying what no longer works for your company. The other bit is about looking for ways to bridge this gap. Identify which growth strategies best suit your company for a start, followed by how to implement it. To get more out of this process, register now to attend Ascent’s upcoming conference, where you can learn more about these and other business solutions to help set your tech company apart from your competitors.