5 ways to increase Business Growth
Have you ever wondered, why major brands remain well-known?
Well, they not only have a wider customer base than small businesses, but customers also purchase them more frequently. Be it a small business or a large one, the goal of every business is to grow further from the point where they are. If you're a small business owner working in a niche sector, then this article is especially for you.
Find out what 5 points you should focus on, in order to grow your business
1. Want to reach the maximum market-Focus more on the Light Category buyers and less on Heavy Category buyers
Before we start with why should we focus more on the light category buyers as compared to heavy category buyers, let's first try to understand the difference between the two.
Light category buyers are the ones who are not loyal to your brand, they do seek some importance and relevance once they purchase either from your brand or from your competitor in the same industry. But the point to note is - when they make that purchase, they do it in heavy quantities.
Heavy category buyers, on the other hand, are loyal to your brand so they are usually customers but they also make low-quantity purchases.
To give an example, in the UK, 50% of Coke consumers buy just one or two cans or bottles annually, compared to the majority who buy three or fewer units.
If you want your market to grow, focus on the light category buyers and be certain that they are aware of and comprehend your brand and its promotion. Because they are more invested in the category and are therefore more inclined to pay attention to advertising and testing a new brand.
Heavy category buyers are already somehow your customers, either in a direct form where they make purchases directly from your brand or in an indirect form where they come across your brand in a cross-functional way.
The potential for brand growth is further constrained by the small number of heavy customers and their brand repertoire. Light category customers, in comparison, don't give the category any thought. They need to be able to see, locate, and purchase your brand as easily as you can. In another form, we need a lot of people to buy the brand once, and a few to buy it repeatedly.
2. Aim for a High Media Reach
The most popular media tends to be those with the largest penetration (for example, online, followed by TV) as compared to (e.g. magazines and cinema).
Prioritize the media with the greatest reach, and focus more on unique viewers and reach rather than reaching out to the same set of customers multiple times Given the nature of your brand and also the target you're trying to reach, offline and online media consideration is good, but also consider media from distinct families, or in an Omni channel way that provide great experiences n both the format. Get the most reach you can afford if your budget is tight. In this case, if you have decided to cut spending in your media budget, try to double the behavioural, functional or emotional aspects and then notice or analyse the change
3. Calculating ROI might not always be the right path to choose
The return on investment from your efforts may be significant because heavy buyers are more likely to respond to your marketing, but when your goal is to maximise your reach so that you can change the buying pattern and decision of the light-category buyers, optimising ROAS or ROI might add as a roadblock. For light and new category shoppers, your advertisements should be simple enough to grasp and recognize your brand and not how by showing them multiple redundant advertisements you're able to maximise your ROI.
So, whenever your next marketing campaign rolls out, give a pause and give it a thought to who your target market is and what exactly is your intent with the campaign and then go ahead keeping the difference between light and heavy category buyers in mind
4. Focus on limited Advertising
Look for widespread strategies to engage customers' minds and bodies. As mentioned in the aforementioned points, the heavy category buyers are already your fan, and those you want to make fan now are the low category buyers, so recklessly spending on advertising and too frequent ones is not going to help. Recognise the various entry points and plan to optimise them. It's about how you maximise your conversion of the low category buyers and less on how many ads you keep on showing them to get them on board
5. Make physical availability a priority
Your brand should be simple to find both offline and online. You require two views to be present:
1) The buyer's transaction view: Will they look for products and make purchases online or in person?
2) Category buyer view: where and how they shop
Reduce the likelihood that someone searching for products in your category won't find your brand.
Three differences make it simpler for customers to remain brand loyal when purchasing online. 1) A brand list that can be searched 2) past purchases are saved, and 3) stockpiling preferred brands is made simpler by delivery