If I was to say that economic growth in the UK could be low and flat for the next ten years, would you laugh at me or take me seriously ?
The UK economy having emerged from recession, has now entered a period of low economic growth. By that I mean a growth rate below 2% per annum.
Within the last month we have had a budget, and in that the Chancellor reduced his growth forecast from 2.1% to 1.7%, Whilst the European, OECD group forecast UK growth at just 1.5%.
So I believe its safe to say that economic growth is highly likely to be low or flat certainly over the coming year or two.
What steps can businesses take to grow amd develop against this background ?
Growth Steps Businesses Can Take
During this period, businesses will continue to startup and customers will make purchases. But how do you position your business to attract MORE than your fair share of business ?
How do you STAND OUT in a more competitive business world and yet do it cost-effectively ?
Across most businesses, there are three potential growth areas, and these can be viewed as follows :
1. Marketing - Finding more new prospects
Typical marketing campaign conversion rates are around 1 - 5%. So marketing becomes a numbers game - reaching out to enough prospects to generate enough new leads.
One way to improve your marketing efficiency is to adopt a proposition-led approach - defining clear packaged offerings, often at a fixed price, with clear deliverables.
This has several benefits :
* Allows volume marketing
* Re-use of marketing and sales literature
* Better customer targetting
* Allows services to be marketed like products
The objective of this approach, which is particularly useful for service businesses, is to maximize the reach and use of all marketing and sales resources across multiple customers.
2. Sales - Sell More to Existing Customers
Whilst business owners experience joy in closing a new sale, often the initial sale is the most expensive to achieve - because a brand new customer has to be acquired, and there are costs associated with reaching that point.
By contrast, making follow-on sales is often much easier, and less expensive, and thus offers a further business growth opportunity, provided the business has suitable add-on products and services that complement that of the earlier sale.
Other approaches that can also be used include discounts and special offers for existing customers.
Remember, closing a new sale isn't the end of the sales process - it's only the beginning.
3. Customer Service - Retain Customers for the Long Term
How often do businesses take a new order, and then forget about the customer ?
The focus of attention becomes one of delivering whatever has been purchased, but the management of the ongoing service relationship is just as important.
The biggest factors why customers stop being customers of your business is likely to be a combination of poor service, broken promises, or perceived indifference. Paying attention to these areas is doubly important in a low growth period
By retaining customers for the long term, businesses can build up an ongoing revenue stream that survives downturn periods.
The solution is to view Customer Service as part of Business Development.
Amongst the steps you can take are :
* Achieving a high level of customer satisfaction
* Maximize customer-chargeble revenue opportunities
* Ask for testimonials and feedback
* Consider outsourcing non-core activities (e.g admin)
In a low-growth economy the finding, development, and retention of customers becomes a key focus of the business, and doing this in the most cost-efficient manner. Taking some of the steps above may mean your business can actually grow and proposer, even in these tougher times.
George Montgomery
GBS Group - Business Development Consultants
GBS specialise in helping businesses to develop and improve their performance. We provide business development services cover Marketing, Sales, and Customer Support. Examples of the types of businesses we work with including, IT & Telecoms providers, Contract Cleaning, Maintenance Businesses, Training Providers, the Professions, and more.
Contact us today to arrange a FREE, no obligation, Business Review for your business. Tel: 020 8758 2364
www.gbs-group.co.uk
The UK economy having emerged from recession, has now entered a period of low economic growth. By that I mean a growth rate below 2% per annum.
Within the last month we have had a budget, and in that the Chancellor reduced his growth forecast from 2.1% to 1.7%, Whilst the European, OECD group forecast UK growth at just 1.5%.
So I believe its safe to say that economic growth is highly likely to be low or flat certainly over the coming year or two.
What steps can businesses take to grow amd develop against this background ?
Growth Steps Businesses Can Take
During this period, businesses will continue to startup and customers will make purchases. But how do you position your business to attract MORE than your fair share of business ?
How do you STAND OUT in a more competitive business world and yet do it cost-effectively ?
Across most businesses, there are three potential growth areas, and these can be viewed as follows :
1. Marketing - Finding more new prospects
Typical marketing campaign conversion rates are around 1 - 5%. So marketing becomes a numbers game - reaching out to enough prospects to generate enough new leads.
One way to improve your marketing efficiency is to adopt a proposition-led approach - defining clear packaged offerings, often at a fixed price, with clear deliverables.
This has several benefits :
* Allows volume marketing
* Re-use of marketing and sales literature
* Better customer targetting
* Allows services to be marketed like products
The objective of this approach, which is particularly useful for service businesses, is to maximize the reach and use of all marketing and sales resources across multiple customers.
2. Sales - Sell More to Existing Customers
Whilst business owners experience joy in closing a new sale, often the initial sale is the most expensive to achieve - because a brand new customer has to be acquired, and there are costs associated with reaching that point.
By contrast, making follow-on sales is often much easier, and less expensive, and thus offers a further business growth opportunity, provided the business has suitable add-on products and services that complement that of the earlier sale.
Other approaches that can also be used include discounts and special offers for existing customers.
Remember, closing a new sale isn't the end of the sales process - it's only the beginning.
3. Customer Service - Retain Customers for the Long Term
How often do businesses take a new order, and then forget about the customer ?
The focus of attention becomes one of delivering whatever has been purchased, but the management of the ongoing service relationship is just as important.
The biggest factors why customers stop being customers of your business is likely to be a combination of poor service, broken promises, or perceived indifference. Paying attention to these areas is doubly important in a low growth period
By retaining customers for the long term, businesses can build up an ongoing revenue stream that survives downturn periods.
The solution is to view Customer Service as part of Business Development.
Amongst the steps you can take are :
* Achieving a high level of customer satisfaction
* Maximize customer-chargeble revenue opportunities
* Ask for testimonials and feedback
* Consider outsourcing non-core activities (e.g admin)
In a low-growth economy the finding, development, and retention of customers becomes a key focus of the business, and doing this in the most cost-efficient manner. Taking some of the steps above may mean your business can actually grow and proposer, even in these tougher times.
George Montgomery
GBS Group - Business Development Consultants
GBS specialise in helping businesses to develop and improve their performance. We provide business development services cover Marketing, Sales, and Customer Support. Examples of the types of businesses we work with including, IT & Telecoms providers, Contract Cleaning, Maintenance Businesses, Training Providers, the Professions, and more.
Contact us today to arrange a FREE, no obligation, Business Review for your business. Tel: 020 8758 2364
www.gbs-group.co.uk
great post George, and thought provoking solutions. The key to getting results is always taking action.
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