Growth Strategy

Growth strategy of any business organization should keep following points in special consideration; budget for customer acquisition, cost per customer acquisition, merchandize value per customer, margin per customer, natural churn (a segment of fleeting customer who will never be yours. They keep experimenting and pricing is their key nudge to buy any product or services) and cost of customer retention. If the cost of successive customer acquisition is lower than retention of a loyal customer, then going all out aggressively for customer acquisition makes more sense ignoring the complaints of existing customers for sometime than staying conservative to build the business. By doing so, you will still have more customer despite natural churn and exit of few disgruntled customers than your conservative growth strategy.


If you remain focused on providing value to each and every customer (Though this should be your ultimate goal) before moving ahead, then you will be stuck at very small scale; low sales and low margin making your interest in the business dwindle. If you leave your target customer unattended, then someone else will come and make them their customer. It will make customer acquisition more difficult.


If your customer’s gross merchandise value is very high and they are very sensitive towards being served with full attention, then aggressive growth strategy will kill your business. For obvious reason, a customer spending big amount of money on buying a segment of merchandize on the regular basis will be high net worth Individual with the circle of similar customer base. If you lose attention on any of them, then you will lose business of many of them.

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