NCET Biz Tips: How to create business growth in the New Year
NCET helps you explore business and technology
Ira Gostin
As the new year approaches, entrepreneurs anticipate both excitement and challenges. Embracing the adage, "if you're not moving forward, you're moving backward," businesses should maximizes the transitional period between the old and new year to fine-tune our marketing strategies and identify growth opportunities.
Here are five essential tips to initiate a successful growth marketing initiative for the upcoming year:
Message Review
Begin by scrutinizing the key aspects of your business story and messaging. Evaluate whether your messaging aligns with your current business objectives. Consider changes in direction and shifts in your target audience. Ensure that your messaging remains relevant and resonates with your customer base. Take the opportunity to refine and articulate your business offerings with clarity and purpose.
Audience Analysis
Has your target market changed at all? I’ll use a coffee shop as an example. Do you notice a change in your audience? Younger groups? More businesspeople? Has your demographic changed at all over the year?
When you truly understand who your customer is, you can tailor your services and communicate your value in a more targeted manner.
Engagement Tools Review
Assess whether your target market has evolved over time. Using a coffee shop as an example, observe changes in your customer demographics—whether it's a shift towards a younger audience or an influx of business professionals. A deep understanding of your customer base enables you to tailor your services more effectively and communicate your value proposition in a targeted manner.
Stay mindful of the evolving landscape of marketing tactics and explore new avenues for reaching your audience. For service-based businesses, consider seeking referrals from existing clients as a potent strategy for growth.
Product Offering Review
Regularly review your product or service offerings to adapt to changing customer preferences. Evaluate if your customer base desires new or different offerings. Engage with your team members to gain insights into emerging customer preferences. Consider adding complementary products or services to meet evolving demands and stimulate growth.
Going back to the coffee shop, two years ago no one ever heard of oat milk, but now it’s a real, fueled demand. Do people come to you because they want healthier choices? Or do they come to you because they want to indulge?
KPI Metrics Review
Collaborate with your accountant, controller, or financial advisor to conduct a meticulous review of your key performance indicators (KPIs). Ensure that the metrics you use are accurate and provide informative insights. Learn from successful examples, such as focusing on the per-transaction amount to drive revenue growth.
Here’s a small example. Years ago, when I was at Starbucks, we measured three specific areas daily: in store sales (gross revenue), number of transactions and per transaction amount. Without a big advertising budget, you can’t easily affect the number of people that come in the door. So, we focused on the per transaction amount with some gentle upselling. Quarter over quarter, we found our instore revenue grew because we increased the average transaction amount by 25%. This is a small example, but how can you apply this example to your own business?
When I worked with retail clients in the past, from travel to specialty grocery to hospitality, we applied this concept and found effective results across the board. Growing gross sales can be too cumbersome, but a nominal boost per transaction can accumulate.
In conclusion, identifying growth opportunities does not necessitate an entire marketing team but rather a strategic overview of your business, a thoughtful analysis of available data, and a commitment to making targeted changes.
Wishing you a prosperous and successful 2024!
NCET is a member-supported nonprofit organization that produces educational and networking events to help people explore business and technology. More info at NCET.org.
Ira M. Gostin is the founder and Chief Strategist at G8 Strategies, an award-winning communications firm dedicated to creating impactful communications, investor relations and marketing strategies to help industrial companies move the needle. www.g8strategies.com