Business Strategy: What it is and how to build an effective one
Its time to put together a new business strategic plan for 2020. The sphere of business is dominated by the tips and tactics as it helps professionals to achieve their short term goals. But 2020 is different, competitive success depends on product quality and service which is a long term goal.
Building a strategy can help you achieve both- short term & long term goals. Instead of tricks and tactics, your strategy should focus on principles that your business works on so that it helps you to focus on all the “WHYs” of the business and not just “ WHATs” and “HOWs”. Read on to learn what business strategy is and how you can build an effective one today.
What is Business Strategy?
A business strategy is basically a roadmap created with a sole aim to grow business and help the organization to achieve its goals and targets. But coming up with a business plan is a no cakewalk. It should be ambitious enough that defines your priorities, decisions and yet practical enough to reflect your actions.
How to build an effective strategy?
1 - Know where you stand and anchor an aspiration.
Traditional way of setting a goal is to measure your aspirations and know where you presently stand in the market. Setting up aspirations is like anchoring vision for your business in the future that makes sure the organisation needs to align with the customer’s need. Once you set up an anchor, your brand can come up with business goals that aim to produce customer-centric work and raise your profits.
2 - Segment the market you need to target.
Your product or service isn’t the sole solution to every problem, so every brand decides its niche and targets a specific market that benefits most from their product and service.
People who depend on your product or service for their need as well as want are the loyal customers, who retain longest and are least likely to look up to any other brand, boosting your customer lifetime value and lowing customer acquisition costs.
3 - Beat the competitors, sustain your success.
Consumers don’t buy two of the same products or service, so make sure you are better than what other competitors have to offer. If your brand ain’t the first in the majority of the target audience, well it can be the last then. The best way to stay at top of everyone’s mind is to craft a refreshing brand, differentiate your product from the rest of the crowd and process the product relative to its perceived value.
Depending on your goals and aspirations, you need to figure out the right team that helps you to achieve your goals and also sustain your success.
4 - Invest in Targeted Advertising
Since the social media algorithms are changing, its harder for organic content to stand out making it ever important to include advertising in the marketing strategy. A modest ad campaign is enough to increase your social media presence.
Instead of trying every other social media platform, it’s better to study where your target audience is and also the type of ads that resonate with the target audience. This study gives an insight into what social channels to focus on and how to shape your message best for the target audience.
5 - Review analytics and refine strategy.
Take time to regularly review Google Analytics, social media insights, emails open rates and click-throughs. This will help to frame your business strategy in the most effective way than any of the tips above.
Look how your readers and followers are responding to the content. Reviewing even helps to measure if you are going right with the approach and refine your strategies in the best possible way.
Today internet pages are flooded with advice with countless amounts of tricks and tips that could potentially help you to build a successful business. But without a business strategy that works on your principle, it’s hard to achieve your long term goals.
So which of these tips have you practiced this year?