Annual reports are one of those things that can enlighten your or bore you to death. You’ll either find yourself in awe of the growth a company experienced, find new strategies to attempt or feel more unimpressed at the slight steady growth.
High growth companies attract the attention of business owners because of their seeming ability to do the unthinkable. With stats that show 80% of startups fail within the first 18 months, watching other companies surge ahead in their industry leaves many business owners wondering how they can emulate the same success.
We’ve got you covered.
Companies that experience noteworthy growth typically have three core features in common. Integrate these same features in your company’s culture and you too could see a spike in profits.
Here are the essential ingredients needed for massive growth.
Have you ever had a conversation with a friend who can finish your sentences for you? Or how about a friend who seems to know what you’re thinking before you do? There’s something powerful in that relationship and chances are you have called (or will call) that person your best friend for years to come.
Companies can have that same sort of friendship with their clients.
Your customers know they have a problem, but they don’t always recognize it. They know they’re frustrated, but they’re not always sure what needs to happen to fix the issue. That’s where high growth companies step in.
Companies that seem to attract a steady influx of new business are the ones that anticipate their target customer’s needs and create innovative solutions to solve their problems. This means getting into the mindset of your buyer, going beyond demographics (that don’t really tell a good story), and knowing what your buyer wants better than she knows it herself.
Anticipating your customer’s needs will only go so far. You also need to be able to adjust and adapt to the ever-changing landscape in the market.
Here’s an example: Let’s pretend for a second that you’re a software company. You see in the news that Apple just released a new smartwatch. You anticipate your buyer (who is a first adapter) is probably going to be first in line for the first edition of this watch. Knowing that, you can bet that she will need apps to help her use her watch to the fullest extent.
As a software producer, adapting your marketing strategy and product development to meet that new need is essential. The sooner you can get your app in front of your buyer, the more likely she will be to use your product instead of a competitor. She’s also more likely to recommend your app to her friends who might need it to, escalating your growth.
Adapting to the market is vital. Nothing will stay stagnant forever. Be one of the first companies to adapt your product to your buyer’s newest needs and you’ll make it easier for your customer to purchase from you.
3. Undying Customer Focus
All this whittles down to a relentless focus on the customer. Knowing who your customer is, what she needs, and how she finds her information is the easiest way to get your innovative products front and center.
One company that does this exceedingly well is Zappos.
Zappos was founded by two men. One needed a new pair of shoes, the other hated his job, so they got to work. Their strategy? Focus on providing the best customer service in the shoe industry to win the hearts of their customers.
It’s old-fashioned customer relationships, where it’s just a much more personal thing, rather than just focusing on, oh, what’s the most efficient way we could do something. We want to create personal emotional connections. – Tony Hsieh, Zappos Founder
The strategy worked. In the first year, they made $1.6 million off their new website. The subsequent years saw even higher boosts in profitability until in 2008, they reached the $1 billion mark. The key to their massive success was the undying focus they placed on building their customer relationships – they didn’t focus on building profits and cutting corners.
You’re Up Next!
Now it’s your turn. If you want to start running your company like Zappos and other high growth companies, you have to change your marketing approach. Download your free copy of “The Ultimate Marketing Guide for High Growth Companies” to learn the steps you can take to get started in the right direction.
Read more: Early Warning Signs of Channel Conflict for Emerging Growth Companies
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