By: Leah Jones
Did you know that only 53% of Canadian SMEs will survive for more than five years?
The wide spectrum of business types in Canada means there is no singular tactic to guarantee sustainable growth. But how do you know which strategy is right for your business? The Ivey Business Journal outlines three customer-focused growth strategies for increasing your business’ probability of success.
1. Growing Your Core Business
A good option for: a business that may lack definition but has great potential to grow from within
This requires an overall performance evaluation and an in-depth investigation of what defines the core business. This means clearly identifying your core customers and market differentiation. Asking questions of your motives and methods can lead to insightful conversations that will help identify urgent changes, and develop a tailored process
to refocus on the core business.
2. Growing By Sub-Segmenting Customers
A good option for: a business with a steady and robust customer base
Segmenting customers into groups based on needs, buying patterns and contribution to revenue allows you to identify the most attractive buyers. From this you can create “High Impact Value Propositions” specifically tailored to attractive customer groups. Furthermore, identifying the least profitable buyers can aid you in developing methods to lower service costs for this group in to move the customers to a profitable position.
3. Growing Through Adjacent Opportunities
A good option for: a business that runs efficiently, is generating surplus cash and is approaching its full potential.
This involves entering businesses that have strong strategic links to the core. These could include alternative channels, new products or services and new joint ventures that share chief strategic similarities. The key to this tactic is to focus on leveraging existing customers rather than expanding into new geographic markets where the business’ reputation is unknown.
Leah is completing her final year of the Visual Culture and Communications specialist program at the University of Toronto Mississauga and Sheridan College. She is interning at the RIC centre, bringing her experience in digital, print and website design. Leah is eager to begin a career in corporate communications after her graduation in June.
The RIC blog is designed as a showcase for entrepreneurs and innovation. Our guest bloggers provide a wealth of information based on their personal & professional experiences. Visit RIC Centre for more information on how RIC can accelerate your ideas to market.