Developing a Business Growth Strategy from Consumer Research

business-growth-strategies

 

Only half of startups survive more than five years, and only a third make it to ten years. To ensure sustainability of business, you must create growth strategies. A tangible plan is a defining factor that determines whether you will create growth or devalue the business. A business growth strategy should integrate consumer research to capitalise on market opportunities and keep a pulse on their market dynamics. Here are tips on developing a business growth strategy from consumer research:


Join our Business Achievers community and get access to downloads to help your business, free online training courses and network with members to help grow your business. 


Growth strategies should include identifying ideal customers, establishing a value proposition, verifying revenue system, competition analysis, and focus on innovative products. Each of these should be researched before they are integrated into business growth strategies. This article focuses on consumer research information that can be used to inform business growth strategies.

Co-creating products and solutions with consumers

With increasing internet technologies, consumers continue to express their opinions and creativity on an unprecedented scale. The conventional wisdom that customers cannot innovate products and services has been turned head down. To a business, this can produce radically new ways to co-develop solutions, new products, and growth strategies.

For example, more that 120,000 people from different parts of the world signed up to an internet forum to discuss Boeing design in 2004. Along with design team, they discussed likes and dislikes about air travel, and features they would like to see in their dream airline.


Recommended reading: How To Get Customer Feedback That You Can Take Action On


Value proposition

For a business to record sustained growth, it must identify values that set it apart from other competitors. From consumer research, a business should identify factors that make it credible, relevant, and why customers come for its product and services.

The business must figure out what special benefits it provides to its customers and use the answers to explain to the audience why they should buy from the business as part of its marketing objectives. If a business strays from this proposition, it runs the risk of devaluing.

Acquisition

Business growth strategies may in include acquisition. Consumer research can inspire a company to purchase another company with the aim of expanding its operations. Small companies use this growth strategy when focusing on market penetration or looking to expand their product lines. However, this growth strategy can be risky due to significant investment required to implement it.


Recommended reading: Targeting And Evaluating Prospects for Company Acquisitions


Define key indicators

Use your consumer research to pinpoint indicators that are influencing the growth of the business. Then make sure time and money are dedicated to those indicators.

Verify revenue streams

It is worth understanding that a business can have a great idea or products without revenue streams attached to it. Using consumer research you can identify new potential revenue streams that can increase profit margins. When a new revenue stream is identified, businesses need to consider the sustainability of that stream before embarking on it.

Analysing competitors' activities

Regardless of the industry, your business is operating in, there are going to be competitors that are excelling at areas that your business is struggling with. Learning how competitors are coping with challenges affecting your business operation can inform growth strategies. Consumer research can help you identify what people think of competitors as well as informing your own activities and positioning.

Conclusion

Growth strategies call for more than just envisioning long-term business success. Businesses are now using consumer research to develop growth strategies in nontraditional ways. Embracing consumer interaction and experimenting with new ways of connecting with your customers can help you create effective growth strategies. The fact is that consumers send signals about your business, your products, and services all the time. Feedback can be married with other business processes to develop really effective growth strategies.

Related Posts

 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Tuesday, 16 July 2019
If you'd like to register, please fill in the username, password and name fields.

Member Login

Business Insights & Tips

Leaderboard

1
Jill Holtz
1864 Points
2
Tena Glaser
1386 Points
3
Michael Lane
802 Points
4
Ron Immink
732 Points
5
Fionan Murray
719 Points
View Leaderboard