Australian business owners looking to take their companies to the next level have a number of decisions to make during the months and years to come. Scaling a company may seem like a daunting task, but with our help, it’s never been simpler. Once you have established a business and have the necessary staff on hand, the next step is to analyse the behaviours of your consumer(s).
From there, you can implement a business model that takes all of your individual factors into account. In order to make your digital market spending truly matter, let’s take a closer look at the following guide.
Emerging Trends & Their Impact On Business Models
As consumers are able to make many of their purchases from a personal smartphone or tablet, the onus is now being placed on businesses to cater to them on a more personal level. If their values and preferences are not being mirrored, they are more likely to take their business elsewhere. That’s why customer data should be leveraged as much as possible, to avoid these types of occurrences.
Today’s consumer is also more socially responsible than ever before. If their purchases are going to cause negative consequences from a social or environmental standpoint, they are highly likely to thoroughly consider these issues prior to making any final decisions. In order to connect with the modern consumer, an Australian small business must be in tune with their clientele and the social issues that matter most to them.
At the end of the day, it all circles back to one key fact that cannot be disputed. Today’s consumer lives in the digital realm. Any business model that does not take this into account is not going to be sustainable. A forward-thinking business plan will look at the key factors that drive their customers’ behaviours.
These plans must focus on the digital channels that your customer base prefers and it also pays to be up-to-date on which social media channels they are utilising. For some businesses, Facebook is the way to go, as their audience is going to skew a bit older. On the other hand, a business that is looking to make inroads with a younger audience may want to learn more about whether their potential clientele is spending their time on Instagram. They may also consider exploring TikTok as another platform for engagement.
What Are the Most Innovative Approaches To Take?
Product Pricing
There are three different aspects that must be examined when businesses are looking for the best approaches to take. Product pricing is the first and arguably most crucial area of discussion. For some businesses, a pay as you go model is the easiest way to go. For others, the subscription model is best, as it allows consumers to spread the costs of goods and services over the course of months or years.
While penetration pricing is common, many businesses are steering clear of this model. If you’re looking to garner success with a penetration pricing model, you’ll need to be confident that you’re able to switch your consumer base from your existing brand preference. The product must be of the highest quality. This ensures that the consumer does not merely switch to the next business offering a low upfront cost in exchange for a price hike down the road.
Other businesses may rely on tried and tested approaches, such as offering a loss-leader or introducing demand driven pricing. Each of these strategies comes with their own benefits. A loss-leader is a product that is sold at a loss because it will allow for greater sales later on. Think of it this way: a company may sell a printer at a marginal loss, but they are able to more than make up for it over the long haul because you will continue to spend money on the replacement ink cartridges.
Distribution Channels
In the digital age, there are a wide range of distribution channels available, and you would be remiss not to take advantage of them. E-mail marketing is a great place to start because it ensures access to a captive audience that has actively chosen to hear you out. Once you have created a list of willing recipients, you can craft a compelling welcome message and go from there.
The campaign and messages need to be personalised, though, which brings us to our next distribution channel. Social media marketing seems simple enough on paper, right? All you need to do is post to your established following, and your customer base only continues to increase. However, it all starts by knowing your audience inside and out.
The content must be tailored and speak to their needs. A consistent posting schedule is also needed. Content must flow in a normal manner, so that the consumer is fully abreast of all the latest goings-on. Other companies may decide to integrate this approach with good old-fashioned word of mouth marketing. People are far more likely to make a purchase when it has been recommended by a friend or loved one.
This ties into social media marketing because it also encourages your followers to share content with the people they know best. Hashtags and user reviews can be integrated into a social media marketing strategy. This allows a small business to enjoy the best of both worlds.
Revenue Streams
Business owners must be thoughtful when it comes to the revenue streams that they seek. Those who are looking to be more innovative have a number of choices, though. Strategic partnerships are a great way to go, as these partnerships can be formed through social media with no additional spending from the small business in question.
A businessowner also needs to have a keen eye for potential opportunities. The market is always producing new trends, and these trends offer a wealth of chances to expand your market share. Let’s say that you are selling insurance policies and you notice that there is a massive uptick in RV purchases. This is the perfect chance to seize the day and start offering RV insurance policies that are specifically tailored to your consumer base.
The best businesses are also forever in search of new ways to capitalise on their products and services. You may be catering to a specific audience today, but perhaps there are new methods that can be unearthed. Take a long, hard look at your goods and services to see if they can be offered up in a different. A new revenue stream could be hiding under your nose.
Business Case Studies
Of course, some may be wondering how successful any of these approaches can be. There is plentiful evidence that businesses of all sizes can succeed by adopting any of the less conventional techniques that have been discussed. Business case studies allow for the study of consumer behaviour trends, which begets more innovative business models.
Tire giant Michelin adopted a pay as you go model recently, pricing their tires according to their value, as opposed to the cost per tire. Subscription models are seeing success in a number of industries. Companies like Dollar Shave Club seize market share from larger companies by offering their products for a mere dollar per month.
Frito-Lay took advantage of penetration pricing schemes by offering new snacks at a discounted price, hooking consumers before raising their prices. Dynamic pricing can be found at numerous locations. Well-known establishments such as Berlin Market’s Bierborse are able to draw customers by offering cheaper goods during less busy times of day.
Looking For More Info? Contact Us!
If you would like for your business to rise above the fray, this is the perfect chance to contact our team of professionals. Oracle Tree is here to handle all of your business needs. Contact us as soon as possible when you are ready to learn more.
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