4 Proven Market Growth Strategies that Work
In today's competitive environment, many SaaS and tech companies are looking for new and effective ways to market their products or services to stay ahead of the competition. Staying ahead of the competition and increasing market share is critical for staying in business.
According to the U.S. Small Business Administration (SBA), about half of all new businesses fail within five years, depending on the industry. A study by the Ewing Marion Kauffman Foundation and Thumbtack found only eight percent of startups survive more than ten years, and only three percent make it to 20 years.
Many businesses can spend a lot of time and resources on ineffective growth strategies that don't yield results. Here are four proven strategies that have been shown to work well for most businesses.
In such a crowded online environment, it becomes difficult for companies to stand out to customers. It's vital for you to have a creative and compelling marketing strategy. One that is a breeding ground for growth.
But what is growth marketing, and why is using this strategy important for your business?
In this article, I will go through four proven and effective marketing growth strategies that work and can drive your business to the next level.
1. Utilize Social Platforms For Growth
How often do you use social media to find information and reviews on companies and products?
The impression your company makes online is critical to leads and conversion rates. Online presence is a passive marketing stream for your business. Customer engagement, comments, and reviews on your platforms can serve as sales enablers and allow people to become familiar with your brand.
Take a look at Starbucks.
Starbucks has mastered the "trend" theme on platforms like Instagram and Tik Tok with customizable drinks. Influencers love posting their "drink creations" online and how to order them, which sends flocks of people to the coffee shop to try them.
Starbucks had a revenue of over $8.2 billion in the second quarter of 2022, and there is no sign of slowing down. They have tapped into their customers' voices, listened to what they want in their coffee, and then implemented that.
Increasing your online presence will take a lot of work, but it is safe to say that this trend is going nowhere, and getting on this train now will set your company up for sustainable growth for years.
2. Strive for Market Penetration
Instead of looking at your total market value, market penetration is focused on how much consumers use your product or service. This helps your company estimate how many potential buyers you could reach.
It doesn't matter what line of business you are in. Whether you run a large technology firm or are a solopreneur, you need a game plan. Your game plan must tailor to your objectives, industry, and opportunities.
Identify new markets that would be a good fit for your current product line
Market penetration is an expected growth strategy because it allows you to move beyond your existing customers.
This may involve targeting a new industry, new demographic, new corporate department (e.g., going from HR to finance), or new geographical location. This opens the door to expanding your share of the market.
Wavestorm was a new entrant in the surfboard market. Before they entered this market, entry-level surfboards cost $300 to $1000. Wavestorm interrupted the market by introducing a surfboard that was $99.99. This market penetration strategy allowed them to capture a significant market share and propelled them to the market leader position. The company sold almost five times the number of boards compared to any other competitor.
This is just one example of how market penetration can be a highly effective growth strategy for companies if done the right way.
3. Market Disruption
Market disruption is about gaining buyers' attention with something that entices them. That could be the price of a product significantly better than the other models on the market. When done right, you could shake the whole industry you are a part of.
Some work while others fall flat, but countless industries would only evolve with this tactic.
A few examples of market disruption would be:
- Using a completely different business model, as Netflix did in 1997 when you could rent as many videos as you wanted for a flat monthly price.
- Utilizing innovations, such as when Salesforce offered a cloud-based CRM
- Offering significantly cheaper or better quality products such as Little Ceasar's $5 large pizza.
- Providing something new, such as Slack replacing traditional email
Market disruption takes guts. It would be best to cultivate an idea you stand behind and are willing to see through. To be successful in this strategy, you must have unwavering confidence in your abilities and innovations. You also need the right technology to bring your ideas to life, test them, and measure them to learn from the mistakes and the wins.
4. Prioritize Organic Growth
Organic growth is what a company can achieve by increasing output and enhancing sales, as opposed to inorganic growth from mergers or acquisitions.
In the marketing world, we hear the term "organic growth" all the time. It has become so familiar that we often forget its power. Organic growth is simply growing your business from within without worrying about mergers or acquisitions for profits. This process ends up being more sustainable for future success.
Organic growth efforts can be challenging to get off the ground.t. Your company will have to change how it operates to acquire the skills and knowledge of how to grow organically. Finding what works for you can take a lot of money and time.
Hiring a growth team is a way to ensure quicker and more effective/sustainable organic growth, acquire more organic visits, and increase your market share.
Here at Lean Labs, we help our clients reach growth goals by building an engaging, high-conversion buyer journey that turns your website into a profitable growth funnel. We have proven growth marketing methods that drive your company 10x more traffic, leads, and opportunities.
Scaling Your Market Growth Strategies
The tactics in this list will help you get started on your market growth strategies. However, this is just the beginning.
The key takeaway from this article is that if you want to grow your business long-term, it is critical to give it a personal touch and connect with customers online. It doesn't matter what industry or business you are in; everyone needs more customers!
See how we plan, budget, and increase growth for companies as their outsourced growth team to determine whether we're the right partner to help you accelerate your business's growth. Whether you work with us or not, you'll see our process for building and scaling a brand's digital sales pipeline.
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