Main Revenue Growth Strategies on a Given Market

If a company is planning to grow its turnover on a given market, it should craft a detailed marketing strategy. Below I will describe three main strategic directions for revenue growth.  Please note that this excludes the cases when a company is moving to a new market or expanding its product offer to achieve sales growth.

First, let us define what a market is: a sum total of all buyers and sellers for a commodity or a service in a certain area or region. So, the important criteria include: the presence of buyers (potential buyers), the presence of sellers and the ability and desire of both parties to exchange goods, services and monetary equivalents.

By definition, markets are often limited by geographic borders (however, this is becoming obsolete in times of digitalization and globalization).  Furthermore, there is time aspect as markets tend to go through significant changes over time and even disappear.

When talking about markets we start at the level of available market (that is the total number of available buyers on the market, e.g. people living in a certain area).

The market potential is the sales that could be generated from the customers  who are not currently purchasing the product but would buy it if the company applied the sufficient marketing effort.  With this in mind, there is always a share of customers who would not be profitable to acquire or who would not buy the product at any rate.

Customers who are already purchasing the product comprise the current market volume, which, in turn, consists of the company own market share and that of competitors.

revenue-growth-market-diagram

As you can see on the diagram, there are three main strategies to achieve revenue growth:

  • Market exploration: attracting the customers from the “potential market” segment. This is a good strategy if the market is relatively new or less attractive to the competitors so that there are a lot of opportunities to expand.
  • Market invasion: in this strategy, the company tries to capture the market shares of the competitors. This is a viable strategy for declining or aging markets with a lot of market players and high competition.
  • Market deepening: turning towards the existing customers in order to grow the revenue (increased product usage or cross-selling and upselling).  This strategy is often used as a complementary way of achieving revenue growth in addition to the two strategies mentioned above.

Let us look at the example of a chewing gum market. The exploration strategy would involve targeting the customers who are currently not buying chewing gum (explaining the product benefits, etc.). The invasion strategy would be competing with other producers of chewing gum for the same customers. The deepening strategy will try to market a larger amount of product to the same customer (e.g. suggesting using two strips of chewing gum instead of one or using the chewing gum after each meal).

Using one of these strategic directions (or their combination), a company can create a more detailed marketing strategy to achieve a growth in revenue over time.

Share this post

Improving the Deliverability in E-Mail Marketing: 8 Important Steps

Whether you are just starting deploying e-mail marketing in your company or want to optimize the existing campaigns, use this short guide to improve the deliverability of your messages.

Double Opt-In

Make sure that all the addresses in your e-mail marketing base are collected using DOI. First, this is required by law in most countries. Second, this will prevent complaints (which negatively influence the delivery rate) as well as bounces due to invalid or misspelled e-mail addresses.

Organic Growth

Use legal methods of growing your e-mail list. Avoid borrowing or buying contact lists at any rate. Besides, a sudden surge in e-mail traffic from a domain may be a spam signal for many ESPs.

Verified Domain

When using an external E-mail provider, make sure to configure DKIM (Domain Key) and SPF (Sender ID) in the settings.  You can learn more about those here.

IP Reputation

The reputation of a sender’s IP has significant impact on deliverability. You can proceed with a shared or dedicated IP for your e-mail marketing campaigns. In case you do not send large e-mail volumes, a shared IP would be a better choice. In case of a dedicated IP, it is best to start increasing the volume of sent emails gradually (“warming up” the IP) and once the e-mail volume has increased to the full size of your list, you should maintain a consistent flow of e-mails from this IP.

Valid Code

Remember that deliverable E-Mails are always based on very simple HTML code.  Avoid embedding any interactive elements e.g. based on JavaScript. Also, do not attach any documents or embed videos. You can still realize some of this functionality through placing those elements on your website and linking to them.

For aligning the elements within the e-mail message, use HTML tables. Make sure that your images have standard PNG or JPG formats and keep their size to a minimum. Do not forget ALT-texts in case the images cannot be loaded.

By the way, to achieve even better results in displaying your email on a variety of devices and in different e-mail programs, include a link to the Web version of the email.

Opt-Out Links

Always include a valid  and visible opt-out  link into your e-mail. Opting-out of the list must be possible within a maximum of two clicks. Never make users sign in to their accounts in order to opt-out. Otherwise, you risk a surge in complaints that will negatively affect the e-mail deliverability for all of your future campaigns.

In addition, it is a good idea include the information why the user is receiving this marketing e-mail: “You are receiving these emails because you signed up for fresh updates on bakery goods and recipes from the heart of our kitchen at XYZ Pâtisserie. If you no longer wish to keep in touch, you can opt-out here.”

Sender’s Info

Provide means to contact you in directly the e-mail. The user should be able to identify clearly who the sender of the email is. In Germany, it is a law to include legal company information (Imprint) into all of your emails.

Another thing is to include a valid From address into your e-mail  (also avoid noreply addresses as well as personal addresses, such as name@company.com). Never mask the sender address as this is a spam signal for ESPs.

Working Links

Make sure that all links in your email are valid and work fine. Avoid using URL shorteners and redirects. If you work with UTM codes, avoid including such parameters as IP Addresses, as this violates data protection laws and impacts deliverability.

Additionally, be careful with links to third-party domains (that is, links that do not point to your domain). If you cannot exclude them, just limit their number to a minimum and always check their domain reputation.

List Maintenance

After each campaign, clean up the contact base by removing the addresses with hard bounces as well as all complaints and opt-outs (unless this is done automatically).  If an email has soft-bounced (e.g. due to an autoresponder) more than 5-6 times, remove it as well. Also, you should not include alias emails such as info@ into your mailing list.

You can deploy an e-mail address verification service if your contact base has not been used for a while or if you are skeptical about its quality. Ensure that the personal data remains protected during the verification process. The rule of thumb: when in doubt about the address validity – remove it from the contact base.

I hope that this concise guide will help you to increase the deliverability of the e-mails in future marketing campaigns. If you want to learn more about the optimal mailing frequency, please refer to this post.

email deliverability 8 steps infographic

Share this post

The Why and How of Effective Personal Branding

If you think that personal branding is only important for Hollywood stars and CEOs of Fortune 100 companies, think twice. Because the chances are that YOU can greatly improve the effectiveness of whatever you are doing through a smart personal branding strategy.

Why personal branding?

A strong personal brand will:

  • Help you find a perfect job if you are unemployed
  • Win more projects and customers if you are a freelancer
  • Promote your company if you are an employee or a company owner
  • Attract more attention to a good cause if you a volunteer

Building a personal brand

Building a personal brand is similar to building a product or a company brand. It begins from investigating the needs of your target audience and ends with concrete activities to promote your brand.

personal branding strategy

Environment & target audience

The main goal here is to match your core values to the needs of the target audience. In personal branding, authenticity (being who you are) naturally plays a more important role than in product branding.

Ask yourself the following questions:

  • What am I good at?
  • What are my advantages as a professional?
  • Who are my competitors?
  • Who are the leaders in my field? How did they achieve success?

Then turn yourself to your niche:

  • Who are they?
  • What are their interests and needs?
  • What channels of communication do they use?
  • Who can become my partner or maybe an advocate?

Here you can find a more detailed explanation about investigating your target audience.

Branding strategy and USP

After you defined the direction you will be moving in, you need to get to grips with the branding strategy.

Margaret Mark  and Carol S. Pearson came up with the theory of brand archetypes, which is briefly shown in this table. This is something you should probably keep in mind when crafting your brand.

brand archetypes mark pearson

For example, if you are a trainer, you can select the archetype based on the type of sports you teach: a hero (high-impact training); a caregiver (restorative yoga classes); a creator (contemporary dance classes); an explorer (outdoor activities) or even an outlaw (extreme sports).

However, you can select the archetype based on other criteria (the point is being true to yourself). You can also combine several archetypes to create a unique brand personality.

Another way to convey the uniqueness of your brand is to use the following:

  • Rituals (things you habitually do).  Example: Winston Churchill smoking pipes.
  • Attributes (things you own, wear or carry around). Example: Black sweater and jeans of Steve Jobs.
  • Mystery (biography gaps, rumors, dissonances).
  • Background story (events or circumstances that led to personal enlightenment, “turning point” events).

Brand positioning

Brand positioning means working on concrete visual, intellectual and emotional qualities of your personal brand.

During personal contact, you have several ways to influence how you are perceived by your target audience.

Visual cues

Those include facial expressions, body language, clothing style, hair and makeup, body shape, etc.

Verbal effect

Rhetoric, intonation, choice of words, correctness of speech, negotiation and presentation skills.

Communicative effect

Empathy, tactfulness, “tuning in” with your audience, making a positive impression, conveying the expertise, answering the needs of the audience.

In addition, you should create a consistent “personal identity” (“corporate identity” in company branding). In other words, select personal colors, fonts, create a logo, a signature, a motto, etc. Those are used to “anchor” the brand in the minds of your target audience. Use them consistently in:

  • Social media profiles, personal blogs;
  • Business cards, printed materials;
  • E-mails, letters, etc.

Brand promotion

The final step in personal branding is to start promoting your brand.

Below you will find an overview of promotion channels.

pronoting personal brand

 

Social Media

What is important: Relevant channels, consistent presentation, authenticity, truthfulness.

What it can bring: Networking, strengthening brand image, opportunity discovery.

Events

What is important: Selecting events according to your niche, connecting with target audience, considering active and passive participation as well as organizing and hosting events.

What it can bring: Publicity, networking, expertise demonstration, opportunity discovery.

Partnerships

What is important: Partnering with influencers and thought leaders from your niche, selecting advocates for your personal brand, meaningful partnerships, authenticity.

What it can bring: Publicity, reach, strengthening brand image, expertise demonstration.

Advertising

What is important: Selecting relevant channels, consistency, authenticity, communicating value to the target audience.

What it can bring: Publicity, reach, strengthening brand image, opportunity discovery.

PR

What is important: Working with relevant mass media, focus, regular updates, observing code of conduct.

What it can bring: Publicity, reach, strengthening brand image, expertise demonstration.

This is by no means an exhaustive list and this topic certainly deserves a deeper dive in one of the follow-up posts.

As you can see, personal branding is a highly important matter, especially in times when a lot of us need to re-orientate and apply creativity in achieving our goals more effectively.

Share this post