Truly loving your business and thriving off of what you do is the single most valuable key to business success. Starting a business, let alone growing one, is not for the faint of heart. It takes time, patience and a lot of humility. In 10 years of owning my own business, our growing pains have had their own growing pains, but at this point, I can safely say they have transformed into gains. I've learned the hard way that expansion is a necessary step in growth, but doing so in a manner that doesn't feel like two steps back for every one step forward has been the most challenging part for me. Growth should be an exciting process that couples a thoughtful approach with some creative bootstrapping and an unwavering "go get 'em" attitude. Sometimes growth proceeds only one slow step at a time, but that one step may be critical to the future of your business, so dedicate yourself to making each advancement as "right" as it can be, followed by another and then another. This will likely take some fine-tuning and adjusting. You couldn't learn the ropes of first grade until you'd mastered kindergarten (yes, as a mom of five, parenting analogies consistently make their way into my writing!), and the same philosophy applies to business. Here's how to identify focused steps to take to grow your business. 1. Careful planning and strategic decision-making The importance of careful planning and strategic decision-making cannot be overestimated but is often overlooked when you're running full steam ahead toward business growth. The last thing business owners need is wasted time on unnecessary work that could've easily been avoided with a little thoughtful preparation. Speaking from my own experience at the helm of R Public Relations, I decided to embrace one instrumental but utterly simple expansion strategy: finding my firm's service niche area and sticking with it. The truth is, my firm and my team can do more than we actually do, but we had to start saying no to services we didn't really want to focus on so that business growth would be in the right direction. Mine is a PR company, and yet at one point, I had more content writers and editors on staff than publicists. So I had to shift that imbalance, stay hyper-focused on our service niche and then use that very service to promote ourselves, brag about ourselves and show our potential clients how good we are at shouting the good news from the rooftops. 2. Finding your client base Just like I had to narrow my circle of employees and contractors to those who would most directly contribute to business growth goals, I had to zero in on the client base I wanted to feed my business by offering products and services that would most appeal to them. This step involves understanding your customers' needs and wants — both current and future — and conducting market research to determine them. You don't have to have a degree in data analysis; you just need to be a good listener when speaking to your clients. If you ask and show genuine interest, they'll tell you exactly what they want from you that will keep them on your roster and, in turn, keep your business growing. 3. Setting pricing and service offerings I'm frequently asked, "How much should I charge for so-and-so?" You can't stay in business if you don't get paid appropriately for what you deliver, but just expanding your menu of offerings to bring in more revenue isn't always (or even usually) the best route to growth. Diversification and specialization can make all the difference, so when you're reassessing your service line, make tweaks where needed and, in some cases, eliminate some services altogether. In my firm's case, we took inventory of all the feedback we received from our clients, and guess what we found out? We were providing not only more than they were asking for but much more than they were paying for! Not good. When we raised our prices to keep in line with costs, client demands rose in kind. I ended up with a burnt-out staff and clients with unclear expectations until I eventually realized that the trick was to scale back on extraneous services without disrupting client satisfaction. In other words, we stopped overdelivering and instead set definite and finite targets that could track both client growth and our own. We defined and set a value for our services so that we could price them properly and better manage client expectations. 4. Understanding your market landscape This step could just as easily be labeled "stalking your competitors," and there's no shame in that. In fact, you can learn a lot from scoping out what the competition is doing and then figuring out ways to do it better or differently or with more personalization. When I was just starting out in the hospitality market, there was a "cool kid" on campus, and we wanted to be cooler. So we'd pitch to the same clients and often win — maybe based on price or our extreme commitment or a combination of both; but the point is, we learned how and what to pitch precisely by following the lead of our competition and then putting our spin on their moves. Continually assessing where you can stand out in your market and how you can actualize your exceptionality keeps your current clients from jumping ship and attracts new clients to the buzz you've created around yourself. And you can achieve this with a small team and a small budget. When I had limited amounts of both, I prioritized deepening my relationships with my clients through active listening and customization. In the process, I gained valuable insights into market preferences that allowed my firm to tailor strategies to current market trends, strengthen existing client bonds and foster new ones. 5. Being passionate about what you do Clichéd as it sounds, truly loving your business — thriving off what you do — is the single most valuable key to business success. Clients want to work with you when you're enthusiastic, energized and fun. When your passion for what you do is visible, it becomes a viable path to growth because people want to join you on that path, follow you on that path and share in the rewards that come from an enjoyable journey to a set destination. I'll keep walking that path, recruiting fellow travelers wherever and whenever I can, because we're all aiming for the same thing: successful, blossoming businesses that stand the test of time and evolve with an ever-evolving marketplace. Source: https://www.entrepreneur.com Image Credit: Pexels.com | Photo by Yan Krukau
0 Comments
Reviews and rewards are the biggest factors swaying consumers in the new digital landscape. Brands need to get with the program. We've come a long way from the negative and misleading image of rewards programs only being for low-income consumers. I know millionaire investors who make sure they use their air miles and take advantage of the punch cards and point systems at local mom-and-pop cafes. The traditional approach of building a brand and a loyal customer base is being replaced by rewards programs, which disproportionately benefit bigger spenders. The more these consumers spend, the more they get back — setting up a virtuous cycle for both buyer and seller. In our survey of over 50,000 consumers, only 3% said they would stay loyal to their top brand if a competitor offered cashback or points incentives. The explosion of the number of products at marginal price differentials on retail platforms helps explain this dramatic shift. With so many transactions taking place online, consumers are being swayed by the best deals, the best reviews and the best rewards. Rewards build up over time, so the purpose of these programs is to create an ongoing relationship with customers, especially those who spend the most. It's a simple equation: Offering them the most value ensures they remain the most loyal. Brand equity may not be dead, but it is being redefined by the need to reward repeat customers in this more complex operating environment. Reward programs are everywhere From your local juice shop offering a free beverage after collecting 10 stamps to the major players such as Amazon Prime and Target Circle, rewards programs are ubiquitous and public awareness is high. Almost 80% of people in our survey said they were familiar with apps and websites that offered purchase rewards. According to software company Oracle, 72% of consumers belong to at least one loyalty program. While reviews undeniably wield considerable influence over consumer choices, it's evident that spending habits are increasingly pivoting around the strategic redemption of reward points. For instance, when Discover Card designates certain vendors offering additional points for a limited period, consumers are spurred to intensify their spending at these locations. Such strategic initiatives benefit consumers with bonus points and stimulate the entire ecosystem, creating a win-win scenario for all parties involved. Brand loyalty is also being informed by the preferred rewards of consumers, with two studies divided over the No. 1 category: Capgemini says 69% of consumers prefer cashback above all other rewards, while Merkle found that 79% of respondents preferred discounts. The constant is that everyone wants to be recognized and appreciated for their loyalty. What works best for you? There are two types of loyalty programs: Your own hosted program and an externally hosted program that offers a rewards ecosystem. No matter which you choose, you don't need to have an enterprise business. A hosted program can vary from business to business, but it's likely the type you are most familiar with. You spend enough money or make enough purchases at a business and are rewarded with a free item or something similar from the same business. Almost every small business now has punch cards or a point system that rewards us when we return regularly — whether it be your local coffee shop or the restaurant down the street. Alternatively, I am seeing growth in external loyalty programs that allow brands to reach new customers and reward them for sticking around. These programs can be broken down into two more categories: One that partners with individual industries or market segments, such as Ibotta's hosted rewards program that offers rebates in grocery and retail, and the other that operates across the entire consumer landscape. I call the second type of program a "unified provider." This type of rewards program is evolving in unique ways as mobile apps allow people to be rewarded based on where and when they are spending across varying stores and brands and accumulate rewards. Going further than games The surge in mobile usage over the last decade has unlocked vast potential for these unified reward platforms. My company aims to become the primary channel for consumers to amass rewards from diverse spending avenues. Initially focusing on mobile gaming, we plan to extend into other sectors like fuel, groceries and other areas consumers wish to be rewarded in. One of the key benefits of a unified provider lies in its cumulative nature. This allows consumers to garner more points than they ever could through multiple independent programs. The more consumers spend across diverse categories, the more rewards they accrue, creating higher value for the unified provider. In turn, the provider can afford to share more rewards with the customer, ensuring they stay engaged with various vendors. In essence, this creates a virtuous circle where all parties involved come out winners. Do your homework The arena of gaming for rewards and mobile rewards programs is relatively uncharted. Understandably, people harbor skepticism about earning gift cards simply for playing a game — it seems too good to be true! This newness and a dynamic marketplace indicate a clear need for brands to do their homework thoroughly before venturing into these emerging rewards ecosystems. If you want your business to use an externally hosted reward program, know that the market can be volatile. New providers often spring up only to vanish just as swiftly if they fail to strike a balance that benefits all stakeholders. Reliable resources are crucial for gathering insights and making informed decisions. Major contributors to the app install ecosystem regularly publish performance indexes of leading publishers. These indexes often include information about players in the rewarded engagement field, making them valuable starting points for verifying potential partners. Reward retention The narrative of consumerism has pivoted; it's no longer just about brand loyalty. The innovative rewards program landscape, from local businesses to global corporations, is expanding, evolving and firmly establishing its presence. And it's not just about choice or variety. Repeat customers generate around 65% of a company's revenue, underlining the vital role of rewards programs in customer retention, sustainable business growth, and market differentiation. They've become much more than just a trend; rewards programs are an essential strategic instrument in today's consumer market. Brands that recognize this shift and harness the power of rewards will thrive in this dynamic environment, enhancing their consumer relationships and, ultimately, their bottom line. Source: https://www.entrepreneur.com Image Credit: Pexels.com | Photo by Torsten Dettlaff
It is not too soon for retailers and e-tailers to prepare for the upcoming “competitive holiday shopping season.” In a blog on its site, Salesforce says that while last year retailers were worried about “increasing profitability in a challenging economy,” this year the focus will be on “keeping loyal customers happy.” This is important because Salesforce reports that it’s getting more expensive to attract new customers—and marketing budgets are shrinking, making existing customers all the more valuable. And, Salesforce says, “Since existing customers drive most of retailers’ revenue, keeping them satisfied this season should be a top priority.” When they’re shopping, pricing and value are important considerations for consumers—82% look for coupons before making a purchase, and “66% expect companies to understand (and meet) their unique needs and expectations.” And according to the blog, “Customer loyalty is on the rise.” Salesforce expects repeat buyers will be responsible for more the one-third of holiday orders this year. The Salesforce blog shares five holiday shopping predictions for 2023. Holiday shopping predictions 1. Digital sales will be influenced by generative and predictive AI Salesforce research shows that “17% of consumers have already used GPT for product research and inspiration, and 10% will likely use it to help build their holiday shopping lists.” Since generative AI uses human prompts, Salesforce expects retailers will use customer data to personalize the shopping experience. Salesforce predicts: AI “will influence $194 billion in global online holiday shopping spend.” 2. The returns experience impacts sales In 2022’s holiday shopping season, returns increased by 12%. To reduce this number, Salesforce recommends that your sales policy be:
Salesforce predicts: Poor returns experiences "will put 21% of online orders at risk.” 3. BOPIS still matters Buy-online-pickup-in-store (BOPIS) became wildly popular in 2020 at the beginning of the Covid-19 outbreak. According to Salesforce research, 39% of shoppers look for retailers that offer a BOPIS option. Last holiday shopping season, 20% of online orders “were fulfilled via BOPIS, surging [to 33%] after the shipping cutoff dates.” And Salesforce adds, “41% of shoppers are more likely than a year ago to buy after they browse online for inventory available in physical locations.” To execute BOPIS properly, you should invest in training your employees and the right tools. But it’s worth it—Salesforce research shows businesses that offered BOPIS grew their online revenue seven times faster than brick-and-mortar stores that didn’t provide it. Salesforce predicts: "BOPIS will drive $28 billion in incremental global store sales when customers pick up their online orders." 4. The best ROI will come from social media ads Consumers increasingly rely on social media in their shoppers’ journeys. Traffic referrals from social channels were up 27% year-over-year in Q1 of 2023. And now, social is impacting in-store behavior as well. According to Salesforce research, “In the past three months, more than half of consumers reported going to a physical store to see or buy products they discovered on their social feeds." While influencers previously “drove the bulk of social engagement,” Salesforce research shows influencer impact is lessening and that “shoppers are nearly twice as likely to buy a product if it was advertised in their social feeds than if they saw an influencer promote it.” In addition, half of shoppers “are more likely to visit a retailer’s website after seeing a social media ad, compared to 39% of shoppers who receive a promotional email.” Salesforce predicts: "Social media advertising will drive 10 times more online holiday shopping visits than traditional marketing." 5. Resale sales continue to rise Consumers are embracing the resale market because it saves them money and helps the environment. The online resale phenomenon started with eBay and now encompasses numerous online marketplaces. Now, reports Salesforce, “Brands and retailers are reselling their used merchandise from existing customers.” After a customer trades in a product, “they’re encouraged to buy a new item—creating stickiness with the brand.” This encourages customers to return to the website, which may lead to additional purchases. The recent trend for buying resale merchandise was fueled by millennials and Generation Z, who wanted “to save money, be more sustainable, and get products faster.” And over one-third of consumers plan to buy a used item for someone else in the next six months. Salesforce predicts: "17% of gifts this holiday season will be resold items, saving 32 billion pounds of additional waste in landfills." Tips for retaining customers at the holidays Since customer retention is so important for retailers and e-tailers, here are some ways to do that:
It's not too early to plan your holiday marketing strategy Now is the time to develop your holiday sales strategy. The first step is understanding what your customers want, like, and their purchase history. Start with the information you have: your customer data. Use marketing automation tools and AI to learn more. By taking the time to understand your customers and use their data to create personalized experiences, you can significantly improve customer retention during the holiday season and beyond. Source: https://www.allbusiness.com Image Credit: Pexels.com | Photo by Jill Wellington
These days, data is the backbone of businesses. Employees debate the best ways to collect, analyze and use it behind the scenes at companies everywhere. In the digital age, harnessing the right data can catapult an unknown operation into a household name. At the very least, leveraging accessible information can make a company more efficient and responsive to customers’ needs. But data is also complex, making it easy to get confused about what it all means. Uncovering actionable insights requires knowing how to use information while filtering out the nonsense. In data analytics, biases, misinterpretations and insufficient methods can lead a business down the wrong path. When done correctly, though, data analytics has the power to put a company ahead of its competition. Here are three ways it can. 1. Shaping Strategies Businesses rely on well-conceived strategies to stay ahead of the game. While business strategies aren’t a guarantee of success, they’re a road map to what company leaders hope to achieve. Ideally, those in the C-suite aren’t designing these blueprints based on intuition alone. They’re also using data to determine which direction to go. Relational data models are examples of sources leaders can use to formulate their game plans. These models reveal not-so-obvious relationships between different variables. While correlation doesn’t always mean causation, uncovering connections between variables can lead to more well-informed strategies. Say a company’s customer survey data shows an inverse relationship between loyalty and satisfaction. In other words, the longer clients stick around, the lower their overall satisfaction becomes. Intuitively, this doesn’t seem to make sense. But the data points toward the need for a different customer retention strategy. To figure out what the potential fix should be, leaders would need to plug in more variables. DevX, a leading provider of tools and services for the tech sector, highlights the scalability of relational data models. These models are relatively easy to understand and scale according to a company’s needs. The number of variables can increase or decrease as leaders look to solve problems of various complexity. For example, the company seeking to solve its customer satisfaction problem may need to add agent empathy and language alignment data points to traditional response time and first-contact resolution metrics. 2. Predicting Consumer Behavior Predictive analytics comes as close to a crystal ball as companies can get. With these tools, employees can identify patterns in consumer behaviors. Predictive analytics bring businesses closer to the customer’s mind by revealing how a client will likely react to market developments and company tactics. The tools predict the future by looking at past data to identify patterns and preferences. For instance, historical data shows people cut back on spending when prices go up. But not all market segments bear the brunt of a slowing economy equally. In 2023, inflation and rising interest rates have caused consumers to pull back on new cars, home appliances and furniture. Yet they’re still spending money on restaurants and hotels despite increasing prices. As with any forecast, predictive analytics aren’t always on the nose. However, businesses that use these tools can better anticipate consumers’ needs. Given the current climate, budget-friendly hotel chains like Comfort Inn may broaden their appeal to additional consumer segments. But that doesn’t mean more upscale brands like the Four Seasons will have to offer steep discounts to compete. Predictive analytics tools customize outputs based on a company’s target market and external variables, indicating how customers will likely respond to a new product, service or promotion. If both ends of the hotel chain spectrum continue to appeal to clients despite inflation, each chain will pull ahead. However, predictive analytics may lead them to provide offerings as distinct as their customer bases. 3. Enhancing Online Experiences When people want to buy something, they start their search online. More telling is how many shoppers check out a company’s digital presence to help guide their decisions. About 81% of consumers search for companies online, with 55% checking out reviews and 47% browsing businesses’ websites. If a website isn’t up to snuff, it won’t convince people to move forward in their purchasing journey. Technical problems and confusing content will lower potential customers’ confidence in a business. Even longer load times and complex checkout processes will lead to higher bounce rates or abandoned carts. With website analytics, companies can enhance digital customer experiences and increase conversions. Everything from SEO data to scroll depth can show whether a website is performing to expectations. Low organic traffic could indicate a problem with content and keywords. Less-than-ideal conversion rates might reveal the need for design changes. And too many abandoned carts could be people’s way of saying they don’t trust the site. These data points lead to website improvements that create seamless customer experiences and boost company profits. What It Takes to Compete Beating the competition is how businesses stay in the game. But winning strategies don’t appear out of thin air. Leaders need reliable data analytics to guide, predict and improve what their companies do. Attempting to lead a modern business without data is like leaving everything up to chance. Source: www.forbes.com Image: Pexels
|
Membership is open to businesses and organizations interested in increasing visibility and brand awareness in Westchester County and surrounding areas.
Archives
February 2024
Categories
All
|