The sum is greater than the parts
How 3D growth pulls it altogether
Beyond more customers and higher revenues, what does growth mean to you and your business?
Too often, growth is viewed as an end-state or an over simplified, linear process; you’re either growing or declining. This is a short-term approach. To develop sustainable and meaningful growth, we must go a level deeper. We must develop 3D growth.
The Lens of 3D Growth
3D growth can be achieved by focusing on three areas in parallel;
Increasing, retaining and growing the right type of customers
Attracting, retaining and growing your customer base is the life blood of any business. However, while many organisations simply look at the quantity of their customer count, they are missing an important factor; quality.
The right types of customers are aligned positively to the way you do business and ultimately help you move closer to your vision. They are the perfect brand ambassadors and the best carriers of your brand’s social currency. Their feelings and thoughts of your brand are the most authentic content you can have.
In 3D Growth Marketing, we emphasise on the quality of your customers. They count towards building the business’ brand authority over time.
Increasing the right type of revenue
Like attracting the right type of customer to your business, understanding the right type of revenue is a pivotal step in growth marketing. A such, we can look at this through the lens of ‘high quality’ revenue versus ‘low quality’ revenue. High-quality revenue has three main characteristics;
What level of accuracy do you have that your customers will stay with you? By keeping this high, not only will it result in consistency in revenue, it will also act as a proxy to highlight if your product or services is a ‘nice to have’ or a ‘must have’.
This factor helps us to understand where your profit really does come from. A well-defined growth strategy should have many streams. To understand this, you need to unpack your revenue and look at profit margins to understand what is high, low and otherwise.
Where is your revenue concentration? Does it sit with a few customers? As you grow you need to diversify the base.
On the contrary, low quality revenue does not have these attributes. Growth fuelled by ‘low quality revenue’ often does not have the sustainability that is required to build a meaningful business.
Evolving your offer based upon providing deep value
Value innovation focuses on improving your offer by increasing the value it provides to your customers.
In attempting to break away from the competition, businesses often fall into the trap of product or service enhancements. They focus on doing it better, faster, bigger, or as we call it er-led marketing. This is a red ocean strategy.
Value Innovation starts with listening to the voice of the customer; hence, the importance of targeting the right customers. With the depth of understanding of both spoken and unspoken needs of your customers, you are in a good space to conceptualise, develop and deliver the right solution.
Value innovation breaks the shackles of a myopic and internally focused view and opens possibilities in new markets as you will be led by your customer needs. Given the thinking is beyond existing assets and capabilities and now in term of the total needs of the customer, we can go for a leap in value where competition is not the benchmark.
This fundamental shift and way of thinking results in an increased focus on sustained value and allows you to adapt to the constantly changing business and market environment