STEP FIVE: SOURCE OF GROWTH
Step 5 is the final foundational step of creating a digital media strategy and brings us to defining your source of growth. In most cases, the primary objective of a business is to grow in some manner. Depending on the maturity and category in which the business exists, there are a few different ways in which growth can occur. Simplistically, we are going to break down growth into 3 sources from a marketing point of view. They are: the pie bigger, steal some pie and spend more on pie and pie related items.
So, you may be saying, “Pie? What are you talking about?” Allow me to elaborate with another example If you sell running shoes, there are 3 ways for you to grow your revenue.
- Convince people who didn’t previously buy running shoes, to buy running shoes (Example: Get people who only bought basketball shoes to try running shoes as well) aka. make the pie
- Convince people to buy YOUR running shoes instead of your competition’s (Example: Switch Adidas loyalists to Nike) Steal some pie.
- Convince people who are already buying your running shoes to spend more on shoes and complementary products (ex: twice a year instead of once a year and/or to also buy a pair of socks and a t-shirt along with the shoes). Spend more on pie and pie related items
Defining your source of growth will allow you to determine where you should focus your communications as you drive towards your business objective.
HOW TO DEFINE YOUR SOURCE OF GROWTH
- Make the Pie Bigger
We do this by creating new products. So, if you are planning to bring a new product into the industry, your primary challenge does not lie in beating the competition, rather it is more about convincing your audience, in general, that the product is worth buying. As this new category grows, your business will also grow proportionally with the category as long as you have appropriate awareness and an equivalent product or service to the rest of the industry.
- Steal Some Pie
When you operate in a mature industry, your problem does not lie in convincing people that they need to buy your product, rather it is convincing people to buy your product as opposed to someone else’s. In other words, you need to steal customers from the competition.
- Spend More on Pie & Other Related Items
Finally, this source of growth is likely something that all businesses will strive for, but it is important that it is prioritized accordingly with the other two sources of growth. Focusing on this source of growth essentially means that you want to increase the Euro value of each of your customers. This might be by trading customers up to a more expensive product or service or selling complementary products alongside your regular sales.
Digital Content Tip #1
If making the pie bigger is your primary source of growth, then the content that you create should focus less on differentiation and more on education to bring more people into the category.
Digital Content Tip #2
If stealing some pie is your number one focus, social content that is created must have elements that differentiate you from your competition and demonstrates unique benefits.
Digital Content Tip #3
If upselling customers is defined as an important source of growth for your business, then content that showcases these complementary products must be present in some form in your social content.