If you are not getting more of the cake every year, then your company is shrinking in real terms.
You must ensure the business gets the best it can out of the market place you are in.
Perhaps your first reaction is that you can pick up extra sales wherever possible however this is only short-term because in the long run it will not sustain business growth.
Consider these strategies:
- increase the customer base,
- sell more to current customers
- selling into new markets,
- focus on retaining customers and
- develop new products or services.
If you wish to sell more to existing customers you must know them in terms of:
- their customer behavior
- what they buy
- why they buy
- how they buy
- their typical budget
- where else do they buy from
- why do they buy from you
- add value to products and services
- encourage customers to spend more by selling premium products
- offer incentives and price promotions especially on items that customers usually buy from competitors.
- attempt to win back former customers by finding out why they left and try to resolve the problem. It might be that the service that was unsatisfactory or the price but be realistic as it is not worth winning customers back at any cost.
You can also increase your share of the market by the following strategies, but they require considerable planning and often carry a higher financial risk.
These methods include:
- create a direct sales operation
- appoint an agent
- use wholesalers or distributors
- set up an e-commerce operation,
- establish joint ventures and partnerships
- create new products, this can enhance market share and has the possibility to deliver growth and profitability but is very risky.
Cake by Marina
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