Moving into new market segments can either be immensely rewarding or a dangerous game, depending on your expertise. Let’s look at how you can successfully select new potential target markets and attract them to work with you.
It might seem counter-productive to limit your customers rather than widening your net, but if you try to make your products or services appeal to too many people then you might have a big pool to target but your approach to reaching them will be too general.
If your products or services appeal to a smaller, more targeted audience, you'll have fewer potential customers, but each prospect will be more likely to buy. A vertical targeting approach will improve your customer relationships, increase your competitiveness, create more sales opportunities, engage more senior buyers and accelerate your revenue growth.
By focusing business efforts on a few specific industries, you can achieve growth at a significant rate. You can download a guide to concentrating on the work you can win on Larato’s website.
It’s customer needs, not product categories, that will generate your profitable market opportunities. Make sure that the market you’re interested in can generate the revenue you want by looking in-depth at the customer.
You need to take the time to understand customer behaviours, attitudes, pains and decision-making processes. From this you can undertake careful segmentation of your target market so that you can focus your resources and define your go-to-market strategy. You can download a free guide to understanding how buyers buy on Larato’s website.
If you rush into a new market without thorough preparation, you will minimise your chances of success. Market intelligence will help you to enter your new market confidently, which is crucial for building credibility and generating momentum.
Make sure you have adequate references, experience and processes to operate effectively in your new markets. Understand the size and stage of the market as well as its unique risks and challenges, such as the disruption potential of emerging markets, so that you can sidestep problems and plan-ahead. Be clear about the size of your opportunity and how it could change over time. You can download a handy preparation guide on Larato’s website.
Once you’ve identified an opportunity, you need to clearly understand your position within that target market. Understand your competition. Tailor your services if needed and tweak your marketing and sales accordingly. Don’t assume that because your current efforts have worked for other customer segments, they’ll be successful for your new target market.
You can download a guide to beating your competition on Larato’s website.
Conduct a thorough marketing audit to understand what’s working in your current marketing mix. Work out what activity is delivering the best return on investment and shape your future marketing plan accordingly.
You can download a free guide to understanding what’s working on Larato’s website.
Hopefully this advice has given you some food for thought when assessing your business growth potential. If you need some help following the steps above, Larato can help you.
Larato are experts in helping technology companies to grow. We can help you to take the guesswork out of market analysis and create you a tailored go-to-market strategy.
Using our proven formula, we’ve helped businesses to win over £300 million in new business. That’s why I’m ranked as one of the UK’s top 5 business advisors.
“We would recommend Larato to anyone. Their work gave us the external perspective that provided a foundation and level of credibility about why we are entering this new market and the direction we need to take.” Director, Sales and Marketing, Virgin Media Business
VMB achieved 120% of their revenue plan within six weeks and sustained that accelerated growth over the first six months.
If you’d like to talk about how Larato can help you with customer retention or more generally about how we can help your business to grow, then call today on 01494 216201, email email@example.com or find out more about what we do on our website