As every business owner knows, this is the age of big data. Several years ago, consulting firm McKinsey & Company posited that data analysis would lay the foundation for bolstering business’ ability to compete, innovate and most importantly, grow. As McKinsey and Company argued, collecting and thoroughly understanding the “implications” data has for a business is no longer the domain of individuals whose job title includes the word “analyst.” The information generated by a firm’s business activities must be understood by everyone, particularly those who have been given the responsibility of leading its growth or marketing initiatives. Perhaps the most important information that a company and its leadership can use to inform its growth strategies is consumer research.
Knowing why customers choose to spend their time and money on a product or with a business is critical to mapping out any plan that seeks to enable a business to maximize its potential in the marketplace. Here are several growth strategies that are made more effective when implemented alongside attentive consumer research.
Don’t Underestimate The Power of Developing a Clear Value Proposition
A firm must be very clear on the tangible value it offers existing and potential consumers if it is to reach its full potential. At Entrepreneur.com Rob Biederman writes that firms must be able pinpoint customers’ reasons for choosing them specifically. The most apparent way to do so is through making efforts to collect solid, reliable customer data. That information must then be communicated across an organization’s various departments in a clear way. Failure to do so may lead to disastrous results.
Acquire Established Businesses In Your Target Industry
Bain has continued to execute this strategy since expanding into the cybersecurity space by acquiring Elastica, a cloud security start-up based in Silicon Valley. For a smaller company like Elastica, being acquired is also a growth strategy of sorts because it may allow it access to the resources of a larger company. Being acquired may enable the firm to develop new technologies or make hires it previously might not have been able to afford. For smaller companies, acquiring the expertise of an experienced professional can also represent a growth strategy as that person’s abilities can enable the firm to respond to customer needs in a way it could not before.
When In Doubt, Use Market Penetration