The last month of the 3rd quarter is here and for many business leaders, the 4th quarter is going to be crunch time. As part of our Business Acumen skill development work, Advantexe conducts 1-hour
training sessions called, “Decoding the Earnings Calls” for many of our clients, and after completing the 2nd quarter calls I can safely share there is a very clear message coming from many large organizations that every business leaders should be aware of: “The headwinds are getting stronger, and we better have the skills to take the right actions to grow our KPI’s in a declining market.”
Much of our Business Acumen training work over the next six months is going to focus on coming back to the basics. I am happy to share some of our content fresh from the classroom that describes the 5 things organizations and leaders can do to grow KPIs in a declining market:
Focus on Your Existing Customers First
In many of our business acumen simulations, learners must make choices about where to put their commercial focus. In a declining market, acquiring new customers can be costly and difficult. You still absolutely need new customers, but the suggestion here is to shift your focus to retaining existing customers by delivering flawlessly, responding quicker than ever, enhancing customer service and support, offering loyalty rewards, and maintaining regular communication. These actions not only stabilize revenue but can also increase customer lifetime value and referrals, which are critical KPIs.
Strengthen Online Presence and Continue your Digital Transformation
Getting the biggest bang from your Marketing investments in challenging times will be crucial on many levels. In a declining market, digital channels often present cost-effective opportunities for growth. Continue to drive your digital transformation in the areas of Marketing and Sales by enhancing your online presence through improved website functionality, SEO, content marketing, and social media engagement. This not only helps in reaching a broader audience but also supports KPIs related to digital engagement and conversion rates.
Optimize Costs and Efficiency
This is a tricky one. On the one hand, it’s easy to cut costs for the short term, but it will be at the expense of the long term. As learners understand from our core business simulations, the “secret sauce” is to review and streamline operations to reduce costs without compromising on quality. This could involve automating processes, renegotiating supplier contracts, and looking to reduce real waste. Improved operational efficiency can positively impact KPIs related to cost savings and profitability.
Leverage Data Analytics to Make Smarter Decisions
One of the most valuable lessons learners gain from our business acumen simulations is to not get “stuck in the weeds” and to use their emerging business acumen skills to use data analytics to gain deeper insights into customer behavior, market trends, and operational bottlenecks. This information can help you make informed decisions, anticipate market changes, and better align your offerings with customer needs. Enhancing data-driven decision-making can improve KPIs related to market responsiveness and strategic agility.
Diversify and Adapt Offerings
One of the most intriguing decisions in a customized business acumen simulation we created for a client in an industry that is in a full recession is scaling back on their premiere products and highlighting their value products (lower price) to take advantage of the market conditions. We are encouraging them to explore opportunities of diversifying their portfolio and in some regional areas simplifying it to save on Marketing and Sales efforts. Diversification of the product/service portfolio can help stabilize revenue streams and expand market share, even in tough times.
In summary, it should be no surprise to anyone that things are going to get tough over the next 3-6 months. By implementing these five strategies, you can position your business to not only survive but potentially thrive in challenging market conditions.
