With the massive influx of online users and businesses onto the digital landscape, the online business climate has become exponentially more competitive as more and more companies do their best to establish their online presence and secure a loyal customer base. In fact, seeing brands engage and communicate with their audience on social media platforms like Twitter is no longer uncommon, with the occasional tweet here and there going viral and gaining precious time under the spotlight.
However, one common flaw in most business startups’ customer relationship management strategy is focusing on customer retention alone, forgetting that customer growth and expanding audience reach are important, especially in scaling operations. As a result, many businesses struggle to grow their customer base and hit a plateau in their performance, preventing their company from reaching greater heights and competing on a bigger stage.
Overreliance On A Single Target Demographic
One infamous internal risk that goes undercover and weakens a company from within the firm is the overreliance on a single target demographic. Sure, it might appear like a sound business decision at face value, but trying your best to appeal to a particular niche alone mimics the same effect of putting all your eggs into one basket. And any company that fails to make its products and services more appreciable to a larger group of people exposes itself to market disruptions like (1) changing trends and (2) entry of new competition.
- Trends Change And Needs Evolve: Regardless of what industry or market you provide products and services for, there’s no denying that business innovation, emerging tech trends, and many other evolving needs will change and shape the market outlook. And while careful analysis and observation of trends will provide you some form of reassurance and safety against sudden disruptions, one drastic shift in demand could make your offers lose value. Yes, research and development of new features can offset any loss, but what would have been a profit is now a balancing figure.
- Risk Of New Competition: Besides changing trends and consumer demand, another risk involved with the overreliance of a single target demographic is the likelihood of new competitors entering the market. At first, you might still cover the majority of market shares for your niche, but as soon as they mimic business practices and standards for the industry, you will quickly find yourself in an uphill battle trying to stay one step ahead. And, if they do win out, your sales performance will decline significantly.
Create More Value Through Engagement
Given the shortfalls of focusing only on customer retention and more so with funneling all your effort onto a single target demographic, the best resolution to expand your reach and grow your customer base is through value creation by means of customer engagement. Audience interaction enables you to leverage stronger customer relationships, and depending on the channels you will choose to utilize, you could easily tap into new markets and different niches that would have been beyond your normal scope.
- Promote Your Brand On Social Media: Firstly, your best bet at engaging with more customers and warm leads is by promoting your brand image on social media. Whether it be on Facebook, Twitter, or Instagram, different platforms give access to different groups of people, and discovering which ones carry the strongest potential of becoming recurring customers is your due responsibility. Furthermore, connecting with influencers and digital advertising campaigns are also cost-efficient methods of reaching more with less.
- Improve Your Customer Service And Experience: In addition to social media branding strategies, revisiting one of your core operations, specifically customer service and experience, can also create more value for your customers. It’s one of the best aspects of the business you can directly manage and influence that will encourage your customers and clients to subscribe to your company for the long term. For example, Banner Solutions offers more than just wholesale products and expert industry advice, and you can do the same for your company.
- Enable Partnerships With Other Businesses: Lastly, enabling productive partnerships with other businesses is another effective way of creating more value for your clients and expanding your reach. Whether it be through referrals or direct service providing, negotiating with like-minded businesses will essentially combine your customer bases and provide a net benefit for everyone in the agreement. And depending on the terms agreed, you can work to make the partnership more sustainable and profitable for both parties.
To Scale Your Business, Expanding Your Customer Base Is Necessary.
In conclusion, growing your business and achieving bigger goals for your company also carries the task of expanding your customer base. And even if you’re operating a small local business, it’s a wasted opportunity not to ride the current bullish markets and widen your horizon.