Business growth strategies: 10 best ways to grow a small business

3. Market segmentation

As a small business, competing with giants like Amazon and Etsy can be challenging. Market segmentation can level the playing field by dividing your target audience into smaller, more manageable groups with shared characteristics. This allows you to create targeted marketing campaigns that resonate with each segment, leading to higher engagement and conversion rates.   

By understanding the specific needs and preferences of each segment, you can tailor your messaging and offerings for optimal results. This approach maximises marketing ROI and helps you stand out in a crowded marketplace.

For more clarity on effective market segmentation, explore our comprehensive guide on how to identify and nurture a target audience.

4. Selecting the right channels

These days, consumers’ online footprints are vast and varied. They might browse for products on social media, compare prices on marketplaces, and then finalise their purchase on a brand’s e-commerce website. All of these platforms present sales opportunities for your business. 

In fact, many Irish businesses are already successfully leveraging the use of diverse channels to drive significant business growth. Take Foot Solutions, for example. With a comprehensive digital strategy – that included SEO, PPC, and social media marketing – they were able to significantly increase their online visibility and drive a 94.51% increase in website traffic, resulting in a 550% surge in online appointment bookings3.

Some top tips:

• Consider selling on an online marketplace. 60% of US consumers now start their product searches on Amazon2 (compared to 49% on a search engine), so it will pay to be there. For small businesses with a corporate consumer base, check out our guide to the best online B2B marketplaces.

Research the different ways you can sell through social media. For example, Instagram has a dedicated e-commerce tool that allows followers browsing your page to purchase products without leaving the app. The ease of this is a big sales incentive for consumers and could bring in lots of extra revenue for your business.

5. Partnerships

A great way for a small business to expand its market penetration is to team up with another brand. Let’s say you run a candle business. You could, for example, partner with a local spa to offer their visitors a discount for your website with every treatment they buy.

The partner shouldn’t be a direct competitor (i.e., another candle brand); rather one that has an overlapping audience with yours. You’ll both benefit from exposure amongst the other’s existing customers, which can boost sales for everyone.

Think about what your customers would like and reach out to some exciting brands. You’ve got nothing to lose! 

6. Customer retention & long-term satisfaction

Acquiring new customers is essential for small business growth, but retaining existing ones is equally crucial. Loyal customers contribute to sustainable revenue and make for natural brand advocates. Implement these strategies to foster long-term customer satisfaction:

• Loyalty programmes: Reward repeat customers with exclusive discounts, early access to new products, or points accumulation systems.

• Subscription services: Offer subscription options for frequently purchased products to ensure recurring revenue and customer loyalty.

• Personalised experiences: Tailor your communication and offerings based on individual customer preferences and purchase history.

• Exceptional customer service: Provide prompt and helpful support to resolve customer issues and build strong relationships.

To gain a deeper understanding of customer retention, consider leveraging data-driven models. Propensity models, for example, can predict the likelihood of future purchases or customer responses to marketing campaigns. Logistic regression models can help identify factors that influence customer retention, while uplift models can guide targeted retention marketing efforts.

7. Commerce Calendar

A key part of your growth strategy should be a marketing calendar filled with important dates for you to cash in on throughout the year – like 11.11, Black Friday and the Christmas holidays. Each of these events can introduce your business to a new customer base which you can then retarget in the future – key to growing your small business.

8. Leverage data and analytics

With continually high levels of volatility and uncertainty, harnessing the power of analytics is essential for making informed business decisions. Leverage data to:

• Identify trends: Analyse sales data, website traffic, and customer behaviour to identify emerging trends and adapt your strategies accordingly.

• Optimise operations: Use data insights to streamline your operations, improve business efficiency, and reduce costs.

• Enhance decision-making: Make data-driven decisions across all areas of your business, from marketing and sales to product development and customer service.

DHL Express's Advanced Analytics platform provides businesses with powerful tools to enhance decision-making capabilities. It offers valuable insights into supply chain performance, customer behaviour, and market trends, enabling both small and large businesses to optimise operations and drive growth.

9. Build a strong brand identity

While performance marketing is crucial for driving immediate sales, it's equally important to invest in long-term brand-building. A Nielsen study highlights how brands that over-focus on performance marketing often miss out on future sales by neglecting brand-building efforts.

To achieve sustainable growth, establish specific metrics for tracking brand-building activities and attribute them to revenue generation. This allows you to measure the effectiveness of your brand-building efforts and ensure a balanced approach between short-term performance and long-term growth.

10. Embrace innovation and adaptability

The business world is constantly evolving. To stay ahead, you need to be willing to embrace new ideas and adapt to change. Think of it like surfing – you need to be able to read the waves and adjust your approach to stay upright.

One of the biggest waves right now is artificial intelligence (AI). DHL Express is riding this wave with the My Global Trade Services platform, which uses AI to help businesses like yours expand into new markets. It's like having a seasoned navigator guiding your ship through international waters.

By keeping an eye on the horizon and embracing new technologies like AI, you can prepare your small business for whatever challenges (or growth opportunities) come your way.

Stages of small business growth

As your small business evolves, it will typically progress through these five stages of growth: 

H3 Seed and development

This is the very early stage of your business idea. You’re probably spending most of your time doing market research and exploring whether there’s enough demand for your product/service to make it a viable source of income.   

Start-up

The exciting part – your business is officially open and beginning to attract customers! You’re having to learn quickly to overcome challenges like cash flow or within day-to-day operations. Adaptability is the key to survival.

Growth

By now, you may be generating a steady income and a loyal customer base. Breaking even is the main focus; to do that may require strategic hires, investing in new technologies, or improving efficiencies.

You may also consider partnering with bigger brands during this phase, a strategy which will give you access to a larger pool of customers, as well as invaluable support and guidance from trusted advisors.

Expansion

At this point in your trajectory, your business is hopefully profitable. Hurrah! With this stability, it’s a good time to explore growth opportunities, such as developing new products or expanding into new markets. Tread carefully though – ensure goals are in line with your resources.

Maturity

With several successful years of the business behind you, you may be thinking about selling it. Or – if the entrepreneurial spirit in you is still thriving – introducing new expansion goals. Onwards and upwards!

Ready to grow your small business? Leverage DHL's solutions to support your growth strategies!

We've explored a range of strategies to fuel your business growth, from understanding your customers to embracing innovation. Remember to leverage the power of data, build a strong brand, and stay adaptable in the face of change.

Ready to take your small business further? Sign up for a DHL Express Business Account to help your brand reach its fullest potential.