Business growth strategies part 2: new business development
Embarking on a new business development programme aimed at converting prospects into new customers is a key method for achieving growth. What different strategies can be used to make your new business development activities successful?
Once a business has decided it needs to achieve growth, it needs a well thought our business development strategy in place.
Certain prerequisites are required. For example the business should firstly examine its most profitable existing customers to identify what they have in common, or in other words build a profile of potential new business prospects.
Then comes the devising of the new business development strategy, usually based on one of the following forms.
1. Selling Existing Products and Services to New Customers
The first, and simplest, way to target new customers is with your existing products or services.
Your sales team will already have proven experience with them, and know how to overcome objections and promote the key benefits. You may also have existing promotional material available which can be used in mailings or at events.
Because of your successful track record with existing products, you’ll also have a range of more tangible benefits to communicate to potential clients. You can even draw upon existing customer testimonials to help build credibility amongst this new audience, who may not have any prior knowledge of your business or brand.
Finally, your operational activities are all in place already to start selling the same products with ease, ensuring that you can deliver good customer service to hard won new clients.
So unless there is very good reason not to, always start out a business development programme with what is already available: your existing products and services.
2. Selling New Products to New Customers
In some cases a higher risk strategy may be required. It may be necessary to create new products or services for promoting to potential new customers.
This can be the case if, for example, your existing market has reached saturation, or perhaps your current industry sector has been affected by circumstances beyond your control. It may also be the case that your products have been surpassed by new developments in the marketplace or new technological innovations. In such situations the business seeking to continue growth can be left with no option but to risk all on new products for new markets.
Embarking on a new product development programme as well as a new business development strategy is a task which should not be underestimated in scale. However a well organised business, with good management in place driving progress, can achieve success.
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