04 Nov Business Growth in Saturated Markets
A lot of businesses feel that it’s best to avoid a saturated market. It is presumed that crowded markets are nearly impossible to penetrate. However, there are others who not only survive such a market but scale up with time as well. So, what should you do for business growth?
Well, the reality is that every market has its share of advantages and drawbacks. Testing new markets can be time-consuming, expensive, and risky. Saturated markets, on the other hand, offer clear signals where opportunities are.
In fact, a saturated market means a strong demand.
The fact is that a crowded market is also a sign that there are a lot of opportunities in the market. Without new entrepreneurs entering markets, consumers would have far fewer options. For instance, there are over 600 vehicle models today. In the 1950s, there were just 65.
Similarly, there’s no dearth of new restaurants, yet more and more dining venues are emerging every day. So even in the most competitive saturated markets, it is possible for businesses to succeed. How? Through differentiating your business by providing unique services, niche offerings, or addressing specific pain-points of customers.
Saturated markets are active markets.
This is so because competition can only exist in places where there are a big number of buyers. To cater to the needs of these many buyers, a greater number of businesses try to market and sell their products. Since so many competitors are vying to grab the attention of buyers, the market size expands – providing ample opportunity to anyone who wants to enter a saturated market.
Next up, the million-dollar question.
How do I stand out from the competition in a saturated market?
There are a couple of friendly pointers to this. First, you must do some research on the market to fully understand what the customers need, when, where, and how. Secondly, you must invest in impeccable customer service. Customers always equate brands with experience. Just a single bad experience that remains unresolved can provoke customers to write off your brand. The worst part? Negative feedback spreads like wildfire on social media and through word of mouth.
Next, focus on retention. Regardless of the nature of your business, customer retention should be your topmost priority. According to Small Business Trends, the probability of selling products to an existing customer is 60-70%, as opposed to 5-20% on a prospect. Interestingly, your existing customers are 50% more likely to try out new services or products than a lead.
No matter how crowded your industry or market is, there’s always a way to set yourself apart and succeed. As they say, there’s always room at the top!