Most small businesses we know want to grow. The question isn’t if, it’s how. There are, after all, a million ways to go about it. What we’ve found in our experience working with business owners is that the ones who succeed in growing often have some key aspects in common. First, they take calculated risks at the right moment. Second, they focus heavily on making sure processes are repeatable by themselves or their team (making it easier to scale). Third, they have a brand that current customers identify with and stands for something in terms of a narrative. Finally, they spend a lot of their time on the customer experience, making sure everything from the first marketing touch to follow-up service is as top-notch as can be.
Assuming that foundation is in place, we’ve put together a list of ways small businesses can grow through operations. Some of these involve marketing, while others are certainly focused more on core business decisions. With anything that involves growth, however, we would argue marketing considerations need to be at the center of any new initiative.
No. 1: Expand into New Markets
At the point where you’ve saturated your existing local or regional market, expanding geographically makes a ton of sense for small businesses. Whether that’s moving into an additional new neighborhood, new city, new state, or going nationwide, expansion can open a realm of opportunities. For one, small businesses can take advantage of scale, leading to reduced per-unit costs through bulk purchasing or streamlined services. For instance, a local home builder might expand into other nearby cities and, with increased demand, could secure lower pricing for lumber, piping or other needed home improvement materials.
In another case, a boutique fitness studio in a bustling urban area could expand to new locations in the state or even other states and not have to reinvent the wheel in terms of replicating intro specials, customer service follow-ups or what worked at the original studio, while ditching efforts that fell flat. The studio owner wouldn’t have to do things such as create a new website (building a location page instead) and could take advantage of the marketing infrastructure already built out.
In both examples, business owners can keep average costs lower, hence improving profit margins overall.
No 2: Consider Smarter Pricing
Pricing isn’t just about establishing a margin above costs; it’s about maximizing revenue while remaining competitive. Many small businesses often find themselves in a pricing dilemma: undervaluing their offerings or pricing themselves out of the market. Finding the right price can be elusive. But if you conduct good market research – understanding where your competition is from a pricing standpoint and, most of all, comprehending audience/consumer behavior – you should be able to unveil insights into optimal pricing strategies.
Sometimes, a slight adjustment in pricing can significantly impact profitability without alienating customers. For example, let’s say you elevate your brand or product or customer service. That alone can demand higher pricing and often greater profit margins without sacrificing volume. Or, why not try implementing more dynamic pricing models or bundling products/services for added value? This kind of smart pricing can drive revenue growth. Finally, there’s AI, which is now heavily used to dynamically adjust pricing based on demand (think surge pricing for Uber for example). If you know certain periods of the business are heavy (with high demand), an AI-based, dynamic pricing model might increase pricing, while during lulls in the business, it might offer lower pricing to entice more buyers.
No 3: Fix Leaks in Your Current Marketing Funnel
We often say your marketing performance is only as strong as your weakest link. Identifying and addressing bottlenecks in the buyer journey is crucial for maximizing conversions and optimizing ROI. Conducting a comprehensive funnel audit can reveal areas of friction where prospects are dropping off or losing interest. What is funnel audit? Think of it like an analysis of the buyer journey, everything from a customer’s first awareness of your company and/or products/services to the point all the way through purchase and subsequent follow-up.
For example, an e-commerce retailer might look at his or her data and discover a high abandonment rate at the checkout stage. By implementing a few adjustments – say a one-click payment option, streamlining the checkout process, or offering personalized incentives, he or she could successfully reduce cart abandonment and boost overall conversion rates.
No. 4: Add an Additional Marketing Channel Such as Advertising
It’s not uncommon for many small businesses to grow without ever advertising. Many, after all, start out with limited funds and build the business through word-of-mouth or creating lots of great content. But at some point, it may make sense to advertise. And this is where adding a new marketing channel such as digital advertising can enhance reach and amplifies brand visibility, which can translate into greater sales. While traditional avenues like print ads and radio spots still hold relevance, digital channels offer unparalleled targeting and measurement capabilities. Embracing platforms like Google Ads (for search, display, native), social media advertising, and programmatic display ads can extend your brand’s reach to new audiences. Additionally, exploring emerging channels like digital out-of-home (DOOH) advertising opens doors to innovative, local engagement opportunities.
Example: Let’s say you’re a local realtor. Instead of sending out direct mail, maybe it’s time to try digital out of home, where you can raise awareness of your business through billboards delivered electronically in nearby subway stations, bus stops or other outdoor campaigns. Because of the mobile phone data available, many advertising providers can help you target the exact type of individuals who pass by such billboards, leading to more awareness among the right audiences.
No. 5: Get More Aggressive with Email/Text Notifications
We often run into small businesses that remain reticent about marketing. Maybe they don’t want to add to a world in which customers are inundated with marketing messages, email and text notifications. Yet, too often, businesses underutilize these channels, missing out on valuable opportunities for customer interaction and conversion. Whether it’s sending personalized promotions, order updates, or exclusive offers, proactive communication keeps your brand top of mind and fosters loyalty. Also, such messaging will often generate revenue. Consider these facts:
- Of all the marketing channels, email is no. 1 in terms of ROI with $40 returned for every $1 spent
- 98 percent of text messages from businesses are read
- Companies that use alerts or push notifications show a 180% in orders
We know, for example, many fitness studios that use both email and text to implement automated reminders for class bookings and personalized workout tips. Some will also more aggressively use text to upsell higher-level memberships or other offers, thereby boosting revenue per member.
Conclusion
These are just a few of the ways we’ve seen small businesses boost their bottom lines without having to do a significant brand makeover or move into a completely different line of business. Whichever one you choose, we’d add one thing: It’s important to be decisive. We’ve seen a lot of businesses that flirt with different options but then get bogged down and never make a decision. Meanwhile, the competition continues to develop or the moment to strike passes. That’s why it’s often better to be bold – experimenting with new approaches and staying agile in adapting to evolving market dynamics. If you need help, don’t hesitate to contact us at Marketing Nice Guys for a free consultation. Our mission is to help you excel at digital marketing.
