Growth strategy is a significant concern of small and medium enterprises (SMEs), with the ability to remain competitive, retain and attract customers at the front of mind. However, challenges to stay competitive and grow arise when considering the costs and time restraints that SMEs are all too familiar with.
According to a recent report by Deloitte Access Economics, customer retention and business intelligence are fundamental to future (SME) survival. Here are the top SME growth strategies.
Prioritise existing customers before chasing new ones
It’s easy to believe obtaining new customers should be the primary focus of an SME growth strategy. However, focusing too heavily on acquiring new customers will mean current customers are overlooked. Instead, an SME will receive the most benefits from turning current customers into repeat purchasers, extending their lifetime value (LTV) and creating advocates of the business.
SMEs know this, according to a Deloitte Access Economics report, which shows 60% of SMEs list customer retention as a key future opportunity, with 47% focusing on increasing the amount each customer spends. This is critical, as getting current customers to buy more, more often is as important as customer retention for growth. For example, if you can get every customer to buy from you one time a year, you have essentially doubled your business.
The idea of being customer-centric is not new. Doing business in a way that provides a positive customer experience to drive repeat business, customer loyalty and profits has long been a focus of SMEs.
To get your customers to buy from you more, you need to really get to know more about them. Here are a few questions that you can first ask yourself that will help you understand your current customers’ buying habits.
Key questions to ask:
- How often are your existing customers buying from you?
- What’s the average sale price?
- What’s the average order size?
- Where do your best customers come from?
- Why do your customers leave?
Gaining insights about existing customers will identify the best ways to get these customers to return, reduce customer churn, and grow a business. However, in the current digital age, leaping ahead of your competitors and providing the best customer experience, it is almost impossible without the aid of technology.
Adopt innovative technology
SMEs need to consider how they can respond to the market and adopt new technologies to meet heightened customer expectations.
Through the use of technology, you can learn existing customers’ buying patterns, predict what they might need from you next, and proactively share relevant and valuable content – all with the goal of getting them re-engaged and purchasing more from you, and recommending you to others.
Not only do customers want the above experience - they demand it. Customers expect that businesses know them and existing customers will shop with their loyalty - not based on who offers the best price.
Check out our blog about thriving in cyberspace for more information about using innovative technology to stand out. Remember, if outdated technology is holding your business back, then get in touch with the team at Techwell. Let the team focus on your technology, so you can focus on what matters most!