WHAT YOU’LL LEARN: How one company successfully applied data analysis to diversify its customer base and find revenue growth.
Business owners want to see their company nurture a healthy sales pipeline and sustain revenue growth from existing customers as well as new ones. However, customers leave for many different reasons. They go out of business or jump to a competitor.
Regardless of why customers leave, market diversification is good insurance. But where does a company focus its marketing efforts in order to diversify its customer base? That’s where marketing data analysis comes in. Having the right data on which to base strategic marketing decisions goes a long way in reducing risk.
A manufacturing and re-packaging company with $23M in revenue and 100 employees used market analysis to identify an adjacent market to pursue and drove behaviors with an agreed upon, data-based business development goal. As a result, they’re working on several large contracts that have the potential to double the company’s size.
Data driven market analysis framed the conversation for company leadership. They wanted to know how much of the current market they had and how much more there was available. Their marketing firm used internal performance data from the client’s Customer Relationship Management (CRM) platform as well as market data on their target market segment. It was determined that they were only penetrating roughly 17% of their market.
After looking at their marketing, it was evident that they excelled at reaching and nurturing that 17%. In fact, they were profitable and had a good share of their existing customers. Based on the data assessment, however, attaining further growth meant that they would have to diversify their customer base. And the analysis of the data pointed them to where the potential customers were in the adjacent markets.
Data driven marketing analysis informed their sales and marketing team in determining what their next steps should be. They developed a market diversification plan complete with metrics for measuring future business development efforts and identification of new lead lists, email marketing and telemarketing.
They’ve been exceeding revenue goals for the last several years and have been able to sustain the implementation of their plan. Their commitment to market analysis proves out their strategic philosophy: you manage what you measure.
If your company needs marketing strategy or data analysis assistance, contact Affinity.