The ability to focus on what is important is fundamental to business growth. Furthermore, it is also essential to understand where not to focus your attention because that you don’t want to miss out on the important stuff. As long as you are aware of what matters, it is possible for a business to generate the highest possible returns. Listed below are the five areas where you need to concentrate for ensuring business growth in the long term:
The core value proposition (CVP)
Every business has its own unique selling propositions or USPs. These are those aspects of their products that are truly valued by customers and truly assist them in standing out from their rivals. The problem is that it is all too easy for a business to get distracted from its core competencies and lose focus, which dilutes its position or offer. Therefore, it is better if a business channels its resources into its existing strengths rather than going after the potential ones.
Becoming customer centric
It has been determined through independent observation and study that the growth potential of a business rises with the importance it places on its customers. There have been cases were even a 5% rise in customer retention rates has boosted profits of the business by 80%. Moreover, winning new customers is 20 times more expensive as opposed to retaining existing ones. Thus, it is a better idea to work on improving loyalty and satisfaction levels of existing customers because they are basically lower hanging fruit that can provide a higher return on investment.
The entire purpose of segmentation is to help a business focus on the prospects or groups of customer that offer the highest return. It is stated that 20% of the top customers of any business generate about 80% of its profits. The problem is that half of these profits are spent on 30% of the bottom unprofitable customers. Logic dictates that it is better to let some of these customers defect and concentrate on the important ones. Marketers should target their offerings to those customer segments delivering high returns and value.
Complacency can be the death of a business. Businesses that believe they know everything about the markets and customers are only setting themselves up for a fall. Every market tends to evolve and every product has a set life cycle. When there is an increase in demand, it is understandable that choice also increases and this makes it more vital for a business to enhance their offerings to boost their appeals. But, the fact is that these improvements are not just restricted to the products and services of the business itself. Other aspects also need attention such as customer experience. For improvement purposes, it is a good idea to seek the expertise of a business consulting firm like furmantransformation.com as they can guide you about where to focus your efforts to get the desired results.
As long as you follow these tips, your business will growth exponentially and give you great returns.