What is Organic Growth in Business? 5 Proven Strategies
What is Organic Growth in Business? - Introduction
Businesses of all sizes are always looking for new ways to increase profit and attract more customers. Case studies have shown that trying to survive in a global, competitive economy requires employing a set of strategies that drive business growth.
Business growth is a necessary function of a company lifecycle, as it is the only way to increase profit and remain competitive. External growth-driven owners understand that the most effective way to achieve organic expansion is to sell high-quality products that a target market wants.
To ensure success, a growth company must implement a long term wide-scope organic growth strategy that understands the importance of using resources to reach new clients and take time to sell new products.
Organic Growth Myths: 1. Creating new products, services is the best way to drive growth
2. What worked before will work again in the long term
3. Innovation capabilities cannot be developed for a growth strategy
4. Organic growth is not possible in this particular industry
5 Organic Growth Strategies
Organic growth is generated by increasing the number of customers or gaining more sales from existing customers. It naturally enlarges the company by utilizing all of the available resources, talent, expertise, connections, and other strengths. Innovative organizations understand that organic growth is essential for achieving business success and maintaining a competitive edge.
Because inorganic growth requires a greater number of assets and influence to be successful, most companies prioritize organic growth. Slowly generating more revenue through strong customer relationships and word-of-mouth is more effective at ensuring brand loyalty.
Here are the top 5 organic growth strategies used by both small and large businesses to sell new products, services, and offer the best customer service to ensure internal growth
1. What is Organic Growth in Business? Research Target Customers
Many businesses forget how important it is to develop a thorough understanding of a target market and the factors that drive their behavior. Those who regularly research their target clients are twice as likely to grow organically and achieve profitability.
When researching potential new customers, companies are surprised at how many incorrect assumptions they originally had. By eliminating these assumptions in organic/inorganic strategies, organizations can curate better marketing campaigns and reach new markets.
2. What is Organic Growth in Business? Focus on a Niche
Once research into the target market is performed, businesses should center on a well-defined niche. While it seems counterintuitive to reduce the focus to one market, it provides numerous advantages.
An organization can decrease advertising expenses and the number of competitors while generating greater profits and higher sales figures. Those companies that try and cater to numerous markets tend to perform poorly, as their products/services are blander and less satisfying to the consumer. Studies show that growth-oriented organizations are much more likely to focus on a smaller market.
3. What is Organic Growth in Business? Develop a Differentiator
A differentiator is a feature or advantage that gives a company a competitive edge. For example, after conducting much research, a local diner has discovered that its target market is seeking more gluten-free menu options. The restaurant decides to create a gluten-free menu for this target market while still keeping its regular menu for other customers. This differentiator is not offered by any other small restaurants in the area.
This strategy will not only attract the niche market defined in Step 2, but it also helps the restaurant stand out from local competitors. It's much easier to market a unique differentiator rather than a generic one, and it also creates new patrons.
Effective differentiators in inorganic/organic strategies are honest, relevant to the market, and provable. Ineffective differentiators provide no advantages to the market and are not relevant to their needs. In other words, if the gluten-free menu option is wanted by the target market, then the differentiator serves no purpose.
Examples of Differentiators: 1. Specialize in your market
2. Unique sales experience
3. Alternative approach to business
4. Hyper-targeted audience messaging
5. Shared value processes
4. What is Organic Growth in Business? Use Marketing Tools
Studies have shown that companies who use both traditional and digital advertising achieve better profitability and grow their customer bases at a much higher rate. Effective marketing begins by curating a specific advertising strategy that meets the needs of the target market.
Collecting and analyzing customer data helps know how consumers prefer to receive company information. Businesses should also invest in a software solution that can track the performance of each marketing campaign. This makes it easier to learn from mistakes, pinpoint problem areas, and find better marketing solutions moving forward.
5. What is Organic Growth in Business? Showcase Expertise
Showcasing company expertise increases customer trust in the product/service and will naturally attract new clients. Unfortunately, unique expertise is often inapplicable to the customers as they cannot physically touch or see it. Ensuring expertise is visible to all clients is an essential component of an organic growth strategy.
Growing an online presence, writing social media posts, and utilizing good SEO practices are all effective ways to make expertise transparent. Investing in business intelligence technologies and other automated marketing tools can optimize this process and achieve high growth.
Other Ways to Show Expertise: 1. Use SEO from digital marketing agencies 2. Share information on industry news 3. Discuss latest improvements to the business 4. Guest blogging 5. Customer reviews
What is Organic Growth in Business? Key Takeaways
In conclusion, here are the top 5 organic growth strategies
- Companies should drive organic growth by researching target customers to understand their behavior and know what products, services, and advertising they need. Growth means focusing on one niche rather than try to appeal to several different markets.
- Growth companies should drive organic expansion by developing a differentiator to stand apart from the competition. Differentiators should be relevant, provable, and honest in an inorganic/organic growth strategy.
- Organizations should drive growth by using both traditional and online marketing techniques to attract their target audiences. Utilizing an automated software solution and social media tools will optimize this process,increase the growth rate, and drive up the market share.
- Companies should showcase their expertise and make sure it is transparent as part of an organic growth strategy. Investing in business intelligence solutions and other marketing tools will assist to grow business.
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