How to Define Growth Markets
It doesn’t take an expert to see the world around us has completely changed. These trends, among many others, are having enormous impacts on the business industry. We know that when something affects people, it affects business too. Every business knows it needs to grow in order to survive, but most are facing similar challenges: an uncertain future and limited people, budgets, and time. With limited resources, utilizing precious resources as efficiently and effectively as possible while also dodging risk is both a priority and a challenge.
If you want to survive and thrive in the long term, you need to be as prepared as you can for what comes next. In our experience, working with hundreds of clients across 35 years, we strongly believe in the concept of LEARN and TURN: Your competitive advantage is defined by how quickly you can learn more about your customers and turn that into action faster than your competitors.
To avoid the feeling of helplessness and spinning your wheels, and instead use your advantages to make significant business growth, you need to have a better handle on who needs the products or services you work so hard to provide. We partnered with Futurety, a digital marketing and data analytics agency, to help you better understand your growth markets and how to communicate with them.
What are Growth Markets?
Growth markets are a well-defined group of customers who you can provide value and profitability to—they just might not know it yet! They are your future customers who are either unaware of or haven’t yet used all of your products or services.
Growth markets may also be your current customers who will benefit from products or services you will be developing in the future.
Why are Growth Markets Important?
Especially today, markets are constantly evolving, and your business will be affected by factors out of your control. This includes an ever-changing world: changing customer needs, new technologies, outdated processes, shifts in customer preferences, and increased competition.
Post-COVID-19, many businesses are trying to redefine who they are and who they serve. Customer needs and segments have changed, and we’ve seen the landscape shift across every industry. Now is the time to become laser-focused on who can best benefit from what you do.
In fact, we believe strongly in the concept of LEARN and TURN: Your competitive advantage is defined by how quickly you can learn more about your customers and turn that into action faster than your competitors.
Growth markets encourage you to think proactively about the ways your business can innovate and grow. The businesses that are sure about who they are today but always keep an eye to the future are the ones that will survive.
How to Define and Communicate with Growth Markets
To identify these potential growth markets, take the following steps:
Step 1: Understand where your business is today
It’s essential to have a solid understanding of your current customers and what their needs are now and in the future. You may have made some assumptions about your current market, but do you have the data to support those assumptions? How has COVID-19 impacted or changed your customers’ needs? Are there customers that previously didn’t need your service but do now more than ever? With powerful (and free) tools like Google Analytics, you can better understand how your customers are interacting with your business. By gathering insights through Google Analytics, you can find more information about your customers age, gender and even their interests. Take the necessary steps to back up your hunches with strong and clear data.
Step 2: Learn what is impacting your business
This involves going out into the market to understand which macro and micro-economic factors are affecting your business. Do your customers prefer to receive essential communication through traditional channels like email or radio? Or would they prefer a Facebook ad? Understanding how your business is impacted by economic factors and how you can better communicate with them will help you gather information to develop your strategy.
Step 3: Develop a strategy
Armed with the relevant data, you will need to develop a strategic plan that identifies which growth markets to go after. Consider what matters to your business today and what will matter to your business in the future. With everything changing, we can’t plan for every detail and change. We can, however, use data to focus our efforts and target the opportunities most likely to bring solid returns. Data is what brings that confidence to focus.
What are the Next Steps?
“Marketing is the process of changing the organization to have what people will buy at a profit.” – Roger Blackwell
Be ready and willing to change and execute the strategy you have developed for defining growth markets. Companies that are ready and able to change in this climate are the ones that will survive and thrive in the long term. This requires an evident focus on your customers, strong leadership, clear communication about where the organization is going, and empowering team members to make it happen.
Do you need help finding direction in these times of uncertainty? Please contact us!