Growth Strategy Development Guide for Pilot Business
Have you ever heard of Growth Strategy? Imagine, your vision for the Sukes Startup or Pilot Business is located 3 floors up, but this time, you will not use the elevator to reach the top, you use the stairs.
Yes, a ladder. Each step on the stairs indicates the challenge you have to overcome to proceed to the next.
One wrong step, and you have to start from the beginning.
Every step of the steps indicates your growth strategy and the stairs at the same time is your way to success.
Only a good idea that cannot sustain the business in the long run. Without growth strategies, without a plan, you must have lost balance.
In fact, only about 50% of businesses survive in their fifth year, while only 30% have reached ten years.
So, if your startup doesn’t have a growth strategy or growth strategy, it’s time to formulate it and this article is ready to guide you.
What is Growth Strategy?
Growth Strategy or growth strategy refers to the method adopted by the company to capture a larger market share. This strategy sustains business in the long run and its formulation goes beyond current market conditions.
Some factors affect the formulation of growth strategies, as listed below:
- Market conditions
- Target audience and candidates or untouched audiences
- Competition in the market
- Distribution channel
Analogues your business success by meniji stairs. When you climb the stairs, you must be very careful with the steps you take. There will be competitors who try to drop you, hope you fall.
The weather might be windy, maybe rain. So what will you do? How will you continue climbing?
Therefore, it is not wise to just focus on the vision. Or worse, do not have a vision in mind and hike aimlessly.
However, don’t get confused between Growth Strategy with Growt Hacking.
Growth Strategy and Growth Hacking
Growth Hacking produces massive growth in a short time and is often a cheap process. Growth Strategy, on the other hand, is a long-term process that requires testing several approaches to encourage growth.
You can distinguish these two things clearly on the following basis:
- Results: After applying, the results for Growth Strategy are stable and slow. Whereas, for Growth Hacking, you can see fast results.
- Implementation Speed: Growth Strategy applied in the long term and through this, small business aims to foster their customer base and try different channels. On the other hand, Growth Hacking is focused on the growth of user bases quickly and at low prices by running certain techniques on certain channels.
How to Develop Growth Strategy for Your Startup
Here are the key factors that you must master when you develop a growth strategy for your startup:
Market information through market analysis. This includes understanding –
The long-term growth strategy, each of which will be explained in detail, so you can choose which strategy that best suits your company.
Measure growth by forming a framework for the implementation of the selected long-term strategy.
To get a clear picture of the services you can offer, you need to understand the audience you want to serve, market conditions, and services offered by your competitors.
Analysis of competitors and understanding of demographics Ausiens gives you a clear picture of your position when entering the market.
Often competitors do not meet consumer needs, but because of the lack of alternative consumers must stick to these products or services.
You can get excellence here and offer services that your competitors don’t have.
This is what Duckduckgo did.
With the value proposition of the “search engine that does not track you”, DuckDuckGo competes with Google Chrome. Since the start of 2008 until now, he boasts annual growth of 30%.
DuckDuckGo separates from competition from the beginning in terms of privacy that has never been offered by other search engines.
This is an example of how you can serve depressed customer requests.
Apart from this, sometimes customers don’t realize that there is a possibility of alternative. Back in 2009, when WhatsApp was launched, BlackBerry Messenger, SMS, and G-Talk are several ways to exchange virtual messages.
The founders of WhatsApp understand customer requirements (internet messages such as SMS to actual phone contacts) and launch the application with the tagline “without ads! There is no game! There is no gimmicks! “. Needless to say, the audience was very interested since then.
This is an example of how your startup can be an alternative to people.
So what you can learn:
It all comes down to your value proposition. How does your startup improve customer life? What incentives do they have for your consumption of products or services?
So that every business stub or startup is successful, it is important to fully understand customer needs and identify areas that lack your competitors.
Competitor analysis can help you ensure the area you can serve better and the area you can explore. You also have to remember, your competition can be the cause of your failure if it is not carefully monitored.
Here is an example of Growth Strategy Sharechat:
When India has been dominated by WhatsApp, Facebook, and Instagram, Sharechat appears with a unique proposition of social media platforms that share information in everyday language. Sharechat today, offers 60 million monthly active users.
This application attracts customers not because they can share messages, but because they can do it in their own language. A simple idea like this, changing Sharechat to be a company with a valuation of $ 650 million. It works to make customers realize the value and create the need for applications.
Long-term growth strategy
After you have finished with market analysis and has a clear idea of the product or service you offer, the biggest task is to decide which long-term growth strategy will be adopted.
So, let’s look at some realistic strategies for beginners and examples of growth strategies.
Network Effect or Sales Network Effects simply means that a product or service increases its value along with the increasing number of people who use it.
There are six powers that usually contribute to network effects, you can understand it with an example case for the following Airbnb application strategies:
- Buyer-to-Seller Cross Side: “You must include your place in Airbnb. I want to rent it from the application “.
- Buyer Same Side: “Don’t include your place on the XYZ website, register in Airbnb, the application can be trusted”.
- Direct-to-buyer: Airbnb ads that ask people to order their lodging through Airbnb.
- Seller-to-buyer Cross Side: “I have registered my place in Airbnb, you can make a reservation now”.
- SELLER SAME SIDE: “I registered my lodging place in Airbnb, you must also”.
- Direct-to-seller: Airbnb advertising aims to request sellers to rent their place in Airbnb and make money easily.
Note the segment example.
The segment has used a network model to increase its users. The company modeled six growth channels mentioned above and set quantitative metrics for them.
The segment uses this model to make decisions based on data and identify which channels will be invested, to maximize profits.
You can also choose your main market segment as a special market niche and plan a gradual expansion into the market through network development.
However, to convince your users to refer the products / services offered by your company, you must:
- Provide good customer service
- Determine your value proposition
- Make sure your system can handle that growth
Network effects develop positively for a startup if users get inherent values and network values after consuming and referring the product.
Face-to-face strategy refers to increased brand awareness and its use by contacting prospective customers directly.
Tinder’s smart strategy is the best to explain this approach.
Tinder targets certain demographics and has succeeded in taking over the online dating world. Initially, to grow its user base, Tinder organized social events, meetings and parties for students where only those who had installed the application.
They also entered the campus and quickly gained popularity. The user understands its value as summarized in the following points:
- Free and easy to use interface
- Registration without a hassle
- A real opportunity to meet people directly
Almost no player in the field of online dating and Tinder becomes an online dating solution.
Many can be learned from Tinder’s growth strategy. They give users full control over who they want to talk and offer a very realistic experience.
Free product strategy
As you might expect from his name, you can invite all the main stakeholders to try your product through this strategy.
Clearbit, engine marketing machine, greatly exploit this strategy so that it becomes their biggest single traffic drivers.
How did they do it?
Clearbit launches the API logo where the company can directly design the logo. They prioritize instant satisfaction and immediately, produce more than 60,000 page views in their first week.
It is a valuable tool given for free which helps produce extraordinary brand awareness.
Matt Sornnson, CMO in Clearbit, states that free giveaway from their services causes a large number of inbound from large corporate customers.
This method is very useful for very technical products or SaaS.
Referral Bonus Strategy
The purpose of this strategy is to provide incentives to customers for the growth of the company.
PayPal gets a user initially through this strategy.
The company gets its initial user to refer them to other people and give them money to do it. Bonus is set for $ 20 for registration.
Naturally, news spreads and users grow quickly. And when they grow, the registration bonus is reduced to $ 10 and then $ 5.
This is very effective for PayPal because the reference program helps them develop into 5 million daily users and the company now has an active user base of 305 million.
We can conclude that, although this strategy requires high capital investment at first, the benefits will also be quite large if done after the right research.
After you choose the growth strategy for your startup or business stub, it is time for you to share your vision with your team-mate.
Break the long-term strategy into an annual plan and the specified quarterly.
The annual and quarterly plans will help you:
- Divide the assignment between team members
- Invite everyone responsible
- Strengthen VISION
- Empower every team member
- Increase decision making
The strategic plan will force your team to consciously take into account internal and external factors that affect business.
Establishing KPI also supports and influences business objectives. They show how effective you are working towards the set goals. Ask yourself the target of what you have to fulfill to achieve success.
So now you are ready with your product and find a way to do an optimal Growth Strategy:
You can make networks including friends and your family and ask them to test it first. Their feedback can help you ensure an increase area and also help you make assumptions about the target audience.
Whatever the industry you are in, climbing to the peak of success will never be easy. Therefore, it is important not to forget your goals and continue to climb, one staircase will have a problem and a different way of settlement is therefore Growth Strategy will be very useful for your business.
In order for your business to grow and increase the number of customers you don’t forget to advertise through the Froggy Ads service, you can start by advertising your product, so that later you can improve visitors in your online business portal. FROGGY ADS is an online advertising service that can help you control all your product campaigns. Helps you target the targeting target you want and give you many choices to market your product.