A market expansion strategy in a digital business entails a series of challenges that must be overcome in order to reach and conquer new markets.
It is important to be familiar with the tools that will help your business grow and improve its strategies. One of your major allies turns out to be digital marketing, which helps you advertise your brand and reach the right people with a clear and powerful message.
But in order to enter new markets and conquer new audiences, the company must be prepared in every way, which means in terms of infrastructure, personnel and a website that can support the increase in orders.
How should I choose the right time to start expanding my business?
Before initiating the implementation of your business expansion strategy, it is important to identify the right time to do so in order to minimize the risk, which will always exist.
Several aspects must be taken into account, which will depend on each company and its target market.
A good indicator that it is time to expand is a steady sales growth over at least 6 months, that is, once you are certain of the market’s interest in the product.
If you are seeking international business expansion, you should be familiar with the full context of the country or region of destination, its laws and taxes and restrictions or extra measures required for the importation of goods.
Although it is not a factor that can be measured quantitatively, customer satisfaction is a further indication that the business is ready to expand.
This is why it is also important to have a clear communication strategy with the right tools, such as a fast website that includes a payment gateway for easy purchasing.
Another aspect that may indicate that your business needs to grow is the evolution of your staff’s knowledge of the company and their performance, as well as the evolution of market opportunities and customer needs.
The simple positioning of the product portfolio in the country of origin does not necessarily mean that it will have the same success in another region, so you must also identify the interest of this new market.
Mainly, you need to know if there is demand in other areas, and if so, to check if the company has the personnel, infrastructure and production and operational capacity to fulfill new orders and requirements.
It is not just about the business expanding into another region; the creation of new products or services also presents a challenge for businesses that want to increase their profits.
Therefore, it is easier to enter a new product in the current market than to attempt to position yourself in an international market with more restrictions. The final decision will depend on the business objective and your short, medium and long-term vision.
Another means of business expansion presents itself in the form of more branches being opened within the same city or country.
Certain regions of the same country have different customs and ways of buying products or acquiring services, so before opening another branch, it is necessary to be aware of the new context.
How much does it cost to expand a business?
The price of carrying out the process of company expansion will depend on the market or geographic location where you wish to sell your product.
Some businesses need to make major changes in their infrastructure, which comprises production, packaging, preservation and transportation due to the demands of the new market.
Meanwhile, others have a simpler process, such as updating their website, implementing all forms of payment on it, or partnering with a shipping company that will handle distribution.
As we have already mentioned, the value of expanding a digital business depends on the product and the changes required for its production and subsequent distribution.
Expansion marketing involves a series of expenses that must be properly financed and planned out in a financial plan.
Design your roadmap: 10 tips to grow your business
- Know the new context: if the aim is for the business to enter an international market, you must be aware of the requirements necessary to ship the products.
- Obtain sources of financing: expanding implies a series of expenses that must have a source of financing so as to be able to meet orders and new requirements.
- Know the value proposal: it is key to know the strengths of the product portfolio with regard to the competition.
- Research the target audience: knowing the tastes and needs of the market you wish to reach is undoubtedly one of the relevant aspects for the success of the expansion. Needs change throughout different geographical areas, so it is necessary to identify whether the product is really necessary in that country or region.
- Know your competition: knowing your main competitors is key to differentiate yourself from them and attract more customers with a unique message.
- Have a powerful website: digital businesses that want to expand should think about improving the performance and usability of the corporate website or ecommerce. Nowadays, even if the message is correct and the product is very attractive, if the web page is slow and does not offer all the means of payment, people abandon the purchase.
- Build a communication strategy: one that communicates the brand’s value proposal and includes all channels used by your customers.
- Analyze the data: the correct analysis of the data generated at different moments of the sale can help you to optimize marketing campaigns. There are platforms dedicated to collecting all the information in each part of the sales funnel; these yield analytics that can help improve your message.
- Train your staff: as technological tools evolve, the ways of performing various tasks change, so training your staff is essential for successful expansion.
- Take advantage of the channels your customers use: it is important to use all the tools available to reach your target audience. It’s not only about social networks – a blog can also be a way to attract new customers.
If you are thinking of starting your company’s market expansion strategy, at PayRetailers we can help you improve your website by implementing a payment gateway specially designed for your customers.