With the reopening of economies, the second half of 2021 will be a period of transition for many organizations. The fundamental question that businesses are facing at this time is: how can we recover from the financial losses sustained in the past year? One thing is for sure, growth is necessary for a company to remain competitive and relevant in this new environment. Below we list six strategies for growing your business in Q3 of 2021.
1. Focus on customer retention
Your current customer base is the best asset you have, so focus on increasing repeat customers rather than finding new ones. This step very much depends on the stage at which your business is at. If you are just getting started then customer acquisition is your priority, but if your business is well established then consider investing more time and energy on retention. Of course, one does not exclude the other, find the balance that makes sense for your organization. To ensure business growth, consider reducing the churn rate as well as increasing the profitability of each repeat customer. Some strategies to do so include loyalty programs, email marketing, or discounts on the next purchase.
It is also important to track customer retention. A helpful metric is repeat customer rate which is equal to the number of customers that purchase more than once divided by the number of unique customers. Another one is purchase frequency, calculated by dividing the number of orders placed by the number of unique customers. Average Order Value (AOV) can be computed by dividing total revenue earned by the number of orders placed. Lastly, customer value is equal to purchase frequency times average order value. Increasing customer value is the ultimate goal to grow your business through customer retention.
- Repeat Customer Rate = Number of customers who bought more than once / Number of customers
- Purchase Frequency = Number of orders / Number of unique customers
- Average Order Value (AOL) = Revenue / Number of orders
- Customer Value = Purchase Frequency x AOL
2. Improve customer service
With increasing competition, customer service is vital to business success. This is yet another strategy to reduce churn and increase customer retention. Not only is it about responding to complaints and providing answers, most importantly, it has to do with enhancing the customer’s experience and creating a relationship with the customer.
Customers expect the businesses they choose to cater to all of their needs, and in today’s digital world, it means quick responses. Businesses should offer customer support through many different channels including email, live chat, social media, text messages, etc. Providing exceptional customer service is a great strategy to grow your business because customers are willing to pay more for a better experience and happy customers will turn into loyal ones.
3. Personalize your customer experience
Research shows that personalization is very important to customers. It is key to improving customer experience and building a strong relationship with the customer. Create a personalization strategy based on the information you have about your customers. This will make your business stand out in a crowded marketplace, helping you find new customers and retain existing ones. Customers are even willing to pay more for a unique experience. Ultimately, personalizing your customer’s experience can positively impact your bottom line by boosting revenue, lowering customer acquisition costs, and improving the efficiency of marketing spending, all of which foster growth.
4. Rely on data-driven decision making
Today, companies have access to more data than ever before. Use it to fuel business growth! Implementing data-driven decision-making means analyzing trends to make more informed decisions for the future based on the past. In order to use this approach, you will need a software or platform that allows you to collect, store, and manage data safely.
By using big data analytics, companies can gain a competitive advantage and benefit from increased revenues and reduced business costs. Customer feedback is the number one source of information that can help improve and grow your business.
5. Go digital
Following the Coronavirus pandemic, businesses all around the world have understood that technology is no longer a choice, but rather an essential business strategy. According to Dell’s Digital Transformation Index 2020, 80% of organizations accelerated their digital transformation programs. Improving your company’s IT environment can increase the level of engagement with your customers, make your employees more productive, and allow your business to extract more accurate insights from collected data. All of these elements promote business growth, which is why a digital transformation is fundamental to survive in the post-pandemic world.
6. Improve security and privacy
The threat of consumer security and data privacy became increasingly prevalent as more and more transactions moved online. According to the EY Global Consumer Privacy Survey, 54% of consumers have become more aware about data privacy now than before the pandemic. With the rise in privacy legislation and standards, it is essential to pay attention to concerns surrounding data collection and surveillance. This is one of the main concerns of modern buyers as well, therefore, it is important to meet the public expectation of privacy. Earning customers’ trust by ensuring their information is secure will allow for business growth.
In this new environment, relevance and competitiveness are dependent on a company’s ability to continuously grow. Follow these 6 strategies to grow your business in Q3 of 2021.