If you own a business, you need to understand its identity, its place in the market, and where it’s headed. <a href="https://www.investopedia.com/financial-edge/1010/top-6-reasons-new-businesses-fail.aspx#:~:text=Data%20from%20the%20BLS%20shows,to%2015%20years%20or%20more." target="_self">Approximately 80% of new businesses survive their first two years of operation</a>, with that figure decreasing to 65% for those that reach the ten-year mark.&nbsp;&nbsp;&nbsp;So, what does it take to find the right niche in the market and create a strong business plan with the best chances of surviving the first few years of trading?&nbsp;In our guide, we take a look at how you can identify the right market opportunities and develop a growth strategy that takes you where you want to go.&nbsp;<h2>What is a business growth strategy?&nbsp;</h2>A business growth strategy is a plan of action that details how a business will expand over a given period of time. It will be unique to your business and influenced by the industry you’re in, the types of customers you serve, and the market opportunities on offer.&nbsp;Define your value proposition, identify your target audience, and study your competition — then take action whilst the iron’s hot.&nbsp;A good business growth strategy is made up of a whole host of tactics and practices, from customer acquisition to product development and customer reviews.&nbsp;&nbsp;We’ll explore some of these in more detail later, but for now, let’s start with how to identify a good market opportunity.&nbsp;<h2>What is a market opportunity?&nbsp;</h2>A market opportunity is, put simply, a gap in the market. It’s something, someone, or somewhere that existing businesses are not addressing but that you can capitalise on and use to quickly grow your business.&nbsp;Taking advantage of one is easier said than done, however, as there are plenty of other businesses vying to push ahead of the competition.&nbsp;<h2>How to find a good market opportunity&nbsp;</h2>Identifying a good market opportunity for your business boils down to four key areas:&nbsp;<ul><li>What do consumers want/need?</li><li>What is your competition doing, or more importantly, not doing?</li><li>How can your product solve a particular problem? Or complement a pre-existing solution?</li><li>What is the current state of the market?</li></ul>Let’s explore some of the techniques you can use to answer these four questions.&nbsp;

<h2>2. Leverage product analysis to identify market opportunities</h2>Product analysis involves asking questions about your product and collecting feedback. There’s a range of sources you can use for this, including industry or product experts, focus groups, and existing customers.&nbsp;&nbsp;<h3>Evaluating your existing products using consumer feedback</h3>Collecting and analysing product reviews is a great way of getting valuable feedback about new and existing products.&nbsp;Sentiment analysis tools, like Feefo’s Customer Sentiment Insight, can identify common themes within your feedback. For example, you may discover several customers have highlighted a problem with a product or think your service is lacking when it comes to after-sale care.Use these insights to improve your products, service, and how shoppers perceive your brand.Once you know which products your customers prefer, you may decide to focus on growing your most-loved product lines or switch up your marketing efforts by making sure you’re highlighting the features your customers love most about your products.<h3>Evaluating complementary or new product launches</h3>The performance of products that go hand in hand with your own will have a huge impact on your growth strategy. Keeping up to date on the latest trends is crucial in helping you understand how these complementary products could affect you.It’s important to remember that it’s not just idly sitting back and watching how others are getting on. Building relationships and partnering with complementary businesses can benefit your customers and lead to new market opportunities.<h2>3. Implement competitor analysis to identify market opportunities</h2>Uncover the major strengths and weaknesses of each of your rivals and use these findings to guide the direction of your business.<h3>Competitor benchmarking</h3>Competitor benchmarking uses a variety of metrics to help you compare your performance against your main competitors. You can compare anything, be it market share, sales, or even your Net Promoter Score. This is your opportunity to pinpoint exactly how you measure up and where your next market opportunity might lie.<h3>How to choose competitors to benchmark against</h3>Look at your direct competition if you want to see how you can immediately improve. Choose the major players in your industry if you have big growth expectations, or pick those that have overcome obstacles if you want to avoid getting caught out later down the line.&nbsp;<h3>How to choose what to benchmark</h3>Think about what you want to achieve as a business and the KPIs that are most important for hitting your growth targets. If you’re still unsure, here are a few places you can start:<ul><li>Financial results (revenue, profit, year-on-year growth, etc.)</li><li>Marketing statistics (brand recognition, social following, engagement rates, etc.)</li><li>Sales numbers</li><li>Customer service statistics (customer relationship, action and efficiency, response times, etc.)</li></ul><ul><li>Customer experience metrics (Customer Satisfaction Score, Net Promoter Score, Customer Effort Score etc.)</li></ul><h3>Industry benchmarking</h3>It’s also important to establish your current position in your chosen industry. Comparing your business processes against best practice approaches, and your performance versus industry averages will give you a better view of where you sit in the market and help you discover potential growth opportunities.<h3>How to choose what to benchmark</h3>There is plenty of data you can use to benchmark against. Some areas, like brand awareness, might be a little tricky to track accurately, but site traffic, Net Promoter Score, and social engagement are all measurable if you know where to look.Here are a few things you can start to track to get a better understanding of how you’re performing against industry averages:<ul><li>Average order value</li><li>Net promoter score</li></ul><ul><li>Site traffic</li><li>Average revenue per customer</li><li>Social engagement</li><li>PPCcost and rankings</li><li>Feedback response rates</li></ul><h3>What to do if you’re looking to enter a new industry</h3>Find out as much information as possible about your new industry so that you can better identify the market opportunity on offer. Take a look into:<ul><li>Market size</li><li>Market share</li><li>Growth rates</li><li>Brand positioning of competitors</li><li>Pricing and sales rates</li></ul><h2>4. How to use market analysis to identify market opportunity</h2>Get to grips with the market itself or the business environment factors that could impact the direction your business is headed. Whether it's political decisions, a change to the law, or a wider economical shift, there are plenty of external factors that could potentially disrupt or even improve your chances of success.Keep a close eye on:<ul><li>Technological developments</li><li>Government regulations</li><li>Geopolitical shifts</li><li>Economic indicators</li></ul><ul><li>Trade policies</li><li>Social and cultural changes</li></ul>Using customer feedback can help you quickly understand how much your customers really care about these issues. Surveys give you the opportunity to ask customers about how these issues might affect them, giving you plenty of opinions and additional insight to help guide your strategy on how to approach any potential obstacles that arise.

<h2>How to develop the right growth strategy for your brand</h2>Now that you’ve completed a full assessment of the market and identified the opportunities on offer, you’re going to need a business growth strategy that lets you capitalise.&nbsp;Your priority should be building a strong brand that has long-term appeal. Quick wins can give you a few extra leads in the short term, but establishing a brand identity and a growth strategy that aims for continuous and flexible development is more valuable.&nbsp;Here are a few options to help you get started:&nbsp;<h3>1. Enhance your brand reputation&nbsp;</h3>To find out what your brand’s reputation is, you’ll need to start collecting customer feedback. Reviews and surveys are a good place to start, but you can also use social listening tools to discover what people are saying about your brand that they may not be willing to say to your face.&nbsp;You can use this positive feedback to boost your brand reputation. You can share them on social media, make them part of your PPC campaigns using Google seller ratings, and use them to influence any future marketing campaigns.&nbsp;&nbsp;It’s also worth considering if you’re doing anything that could harm your reputation. For example, responding poorly to or ignoring negative feedback will damage the relationship you have with your customers.&nbsp;&nbsp;<h3>2. Employee engagement&nbsp;</h3>Regular anonymous employee engagement surveys give your staff members the chance to air any grievances, share what they love about their jobs, and be involved in the business’s development and growth.&nbsp;While you won’t be able to fulfil every employee’s request, you need to make it clear that you’re listening to them and that you care about their opinions, even when they’re less than positive.&nbsp;<h3>3. Focus on customer experience&nbsp;</h3><a href="https://techjury.net/blog/customer-experience-statistics/#gref" target="_self">With 85% of customers ready to pay more for a better customer experience</a>, it’s time for businesses to stop thinking about selling products and focus on selling experiences.Before you launch into building a new customer experience-focused growth strategy, asking your customers for feedback can tell you what might be missing from your current offering. You can then create personalised brand experiences with these insights; tailor them to what your customers are telling you they actually want.&nbsp;<h3>4. Product development&nbsp;</h3>You may have some great products under your belt already, but to keep up with the competition, you need to have a product development strategy in place.&nbsp;&nbsp;Consider:&nbsp;<ul><li>What your customers need</li><li>What you can improve</li><li>What your competitors are doing</li></ul>Create surveys, read reviews, set up focus groups, and run betas on new products to get the feedback you need to refine your product offering. This will ensure you’re creating products that people care about. It will also improve the relationship you have with your existing customers as they will feel involved in your company’s growth and success.&nbsp;&nbsp;&nbsp;In turn, this can help boost customer loyalty and attract new customers which can help you to grow your business.&nbsp;

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Spotting market opportunities: How to create a winning business growth strategy

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With online shopping set to account for almost <a href="https://www.statista.com/statistics/285978/e-commerce-share-of-retail-sales-in-the-united-kingdom-uk/" target="_self">38% of total retail sales in 2022</a>, consumers are more willing than ever to spend a considerable amount of time and effort researching a product online before deciding to purchase it. Reviews and ratings are an essential resource in this process, but they’re even more valuable when you can guarantee they’re real reviews from real customers.Fake reviews cost the UK economy £billions each year. They can harm a business’s reputation. They mislead customers too. No wonder Feefo’s research shows that 81% of businesses and 78% of consumers want to be free from them.Real reviews are what Feefo does best. Feefo is an invitation-only platform, which means you get verified reviews from real customers, who have interacted with your business. Our reviews provide meaningful responses from your customers to help identify what’s working well and where your next opportunities might be. You can read, respond to and analyse all your feedback from customers in the Feefo Hub, using the insights to build trust in your brand, improve sales and perfect your customer experience.

<h2>How can Feefo benefit your business?</h2>With the vast <a href="https://www.dixa.com/page/reconnecting-the-customer-experience/" target="_self">majority of consumers (97%)</a> saying that customer reviews factor into their buying decisions, let’s look at how Feefo reviews can work for your business.<h2>Increase sales</h2>Studies have shown that when customers leave positive reviews and star ratings on products, it boosts online sales by <a href="https://www.dixa.com/page/reconnecting-the-customer-experience/" target="_self">up to 18%</a>. In fact, they’re one of the biggest influences on a customer’s buying decision, with 85% of consumers trusting online reviews as much as personal recommendations.Displaying reviews of individual products has also been shown to increase sales. Products with positive reviews are even more powerful, selling up to 200% better than those without. With reviews being such a trusted method of recommendation, incorporating them into your offering online using one of Feefo’s on page review displays can be hugely beneficial.<h2>Improve your customer experience</h2>Replying promptly to feedback and proactively responding to issues shows you’re committed to good customer service. The Feefo Hub makes it easy to respond to feedback, allowing you to thank customers for positive reviews and respond helpfully to negative ones. You might be surprised to learn that <a href="https://www.qualtrics.com/blog/online-review-stats/" target="_self">89% of consumers pay as much attention</a> to what a company writes back to a review as they do to what the customer says.By listening to feedback, you can spot issues as they arise. Feefo helps you identify trends in your reviews, making it easier for you to address any problem areas and improve your service. You can respond directly to your customers and start a conversation to find out more about their experience or close the loop to ensure their concerns are resolved.<h2>Build trust in your brand</h2>Building brand trust is important for every business. Customers need to be confident in your ability to deliver on what you’ve promised them. There are many factors that can affect brand trust, but one of the most influential is customer reviews. Using an independently verified review platform like Feefo that collects real reviews from real customers establishes your business as a brand that people can trust.Being transparent and open about how your customers rate your product or service, by displaying reviews on your website, for example, can help your business improve customer confidence. And with Feefo’s invite-only platform ruling out the potential for fake reviews, you can be confident in the knowledge that all your reviews are from real customers.<h2>Boost traffic and conversions online</h2>Your Feefo reviews can go a long way to improving your performance in organic search results and generating Google stars. What’s more, by incorporating Feefo reviews into your adverts, your click-through rate could be <a href="https://blog.reviews.io/post/how-online-reviews-impact-click-through-rate" target="_self">three times higher than without</a>, getting more customers to visit your website and make that all-important purchase.Being tactical about where you position feedback can also increase conversion rates. Simply displaying reviews can increase conversion by 270%, while placing relevant reviews beside associated call-to-action buttons can help your customers make more informed buying decisions.If you’re interested in collecting real customer reviews to help boost your business, get in touch with us today. We can show you the difference real ratings and reviews can make.

How Feefo reviews can work for your business

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With this year’s US Small Business Week just behind us, we’re looking at the world of small businesses – in the US and UK. What makes up a small business. The problems they face. And how Feefo can support them during Small Business Week and the other 51 weeks of the year too.No matter which side of the Atlantic you live on or what you do, small businesses will have played a vital part in your life - directly and indirectly.You probably use a small business several times a week or even daily. They help provide jobs and support consumer spending. Without them, both the UK and US economies would have serious problems. Even though they’re individually ‘small’, the contribution they make to each economy is anything but.<h2>What constitutes a small business</h2>The definitions of what makes a small business in the UK and in the US are quite different. The UK government defines a small business as one with less than 50 employees and a turnover of less than £10 million. In the US, as with so many things, small businesses are bigger – with the Small Business Administration’s general definition being fewer than 500 employees. Another measure they use is a maximum turnover of $41.5 million. These US figures do change, though, depending on the industry in question.With such big differences in the way small businesses are classified, it’s difficult to make meaningful direct comparisons between each country. So, let’s look at how they impact each of their economies separately.In the UK, there are around 217,000 small businesses. And while this means they’re only 4% of the total number of firms in the country, they employ 16% of the working population. And they generate 15% of the country’s total business turnover.Small businesses in the US account for a huge 44% of the country’s economic activity. They’re also responsible for over 60% of jobs in America.<h2>The issues facing small businesses today</h2>The covid pandemic and the global economic problems caused by the war in Ukraine have had a significant impact on small businesses worldwide and added to the day-to-day problems they encounter.<h3>Rising cost and falling spending</h3>Inflation is the main problem for small businesses at the time of writing. They’re facing rising supplier costs and reduced customer spending in a double whammy for business owners.<h4>How Feefo can help</h4>We can’t do anything to cut the rising costs small businesses face. But verified reviews do help alleviate consumer anxiety when it comes to parting with their cash.Using a platform like Feefo that collects genuine reviews from real customers establishes your business as one that people can believe in – especially important if you’re a small brand. Current customers will feel reassured they’ve made the right choice in picking you. And new prospects will feel confident to shop with you.

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<h3>Revenue and cash flow</h3>In the small business world, healthy revenue and consistent cash flow are vital, and even a small interruption can be fatal for some companies. With consumer confidence and spending hit, many businesses are seeing revenues fall and becoming less profitable. To overcome this, they have to choose between passing increased costs on to customers or cutting their profit margins further.<h4>How Feefo can help</h4>Displaying verified reviews can drive revenue and cash flow.When customers leave positive reviews, studies have shown online sales can be boosted by <a href="https://www.dixa.com/page/reconnecting-the-customer-experience/" target="_self">up to 18%.</a> Reviews are also one of the biggest influences on customers’ buying decisions, with up to <a href="https://eur02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.brightlocal.com%2Fresearch%2Flocal-consumer-review-survey-2017%2F&data=05%7C01%7Ck.woodward%40Feefo.com%7C6a9c33e9f2cc44fe880008da8cee770f%7Cba89dc54cd184fedb9783dfe890a4aa2%7C0%7C0%7C637977253072550850%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=21vEUNfu2c3kYjBxP%2FFQIzyAwX4xxR98taa2m8t%2Bwtc%3D&reserved=0" target="_self">85% of consumers trusting online reviews</a> as much as they do personal recommendations. That’s great news for small or niche brands that people might find hard to get any personal recommendations on.Reviews of individual products have been shown to increase sales by up to 200% better than those without too.Our reviews can help improve your performance in search results and <a href="https://www.feefo.com/en/business/resources/webinars/seo" target="_self">generate Google stars</a> to make you rank above bigger competitors with larger budgets. Adding our reviews to your adverts can <a href="https://blog.reviews.io/post/how-online-reviews-impact-click-through-rate" target="_self">triple click-through rates</a>. Simply displaying reviews can <a href="https://spiegel.medill.northwestern.edu/_pdf/Spiegel_Online%20Review_eBook_Jun2017_FINAL.pdf" target="_self">increase conversions by 270%</a>.With companies, especially smaller ones, having to look closely at their marketing and new business budgets, reviews are a proven way to keep cash flowing.

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<h3>Improving your products, service and keeping customers loyal</h3>If you don’t know someone has had an issue with your products or service, you can’t put things right and you may lose their custom. The same problem could go on impacting others too. Before you know it, your loyal customer base could have shrunk considerably.<h4>How Feefo can help</h4>A verified customer review platform lets you hear the voice of your customers. It gives them an easy way to let you know what they think and when they feel let down. When you proactively respond to a review, especially if things haven’t gone perfectly, it shows that you’re committed to providing excellent customer service. In fact, <a href="https://www.qualtrics.com/blog/online-review-stats/" target="_self">89% of consumers</a> pay as much attention to the reply to a review as they do to the review itself.Having both positive and negative reviews on your website actually increases trust too. Consumers obviously feel a brand that gets just glowing feedback is too good to be true. Because our reviews are from verified customers, you can relax knowing there are no fakes in there.<h3>Planning ahead</h3>Just the day to day running of a small business is a full-time job. So, getting the time to even think about taking it to the next level can be difficult to say the least. And you need that genuine insight to base your plans on.<h4>How Feefo can help</h4>Listening to feedback and our AI technology gives you access to insights that help you identify opportunities, spot trends, and get better at everything you do. They’re always there as well for when you need them so you can make quick decisions if you have to.

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<h3>Establishing your sustainability claims</h3>Consumers expect businesses to act on sustainability - even small ones. Staff too are actively seeking out companies that take sustainability seriously. With greenwashing rife though, people don’t automatically trust claims made by brands.<h4>How Feefo can help</h4>Depending on your business model and how you operate this can be a great way to differentiate yourself from the competition – especially the ‘big boys’ that might have other reputational issues. We’ve designed our <a href="https://www.feefo.com/uk/business/product/product-customisations/sustainability/ecolabels">Sustainability Awareness Solution</a> to help you demonstrate your independently verified sustainability claims. Based on the <a href="https://www.feefo.com/uk/business/resources/business-insights/united-nations-sustainable-development-goals">United Nations Sustainable Development Goals</a>, which cover a wide range of sustainable activities, it can be a real game-changer.

If you’d like to learn more about how we can help you grow your business, just get in touch, and one of our experts will be happy to help.