Successful business strategies that small businesses can learn from:
1. Focus on Customer Experience
Companies like Amazon and Zappos have built their businesses around providing exceptional customer service. Some key tactics:
- Offer free shipping and hassle-free returns to reduce risk for customers
- Invest heavily in customer service training for employees
- Proactively reach out to customers for feedback and quickly address any issues
- Personalize the customer experience with product recommendations, etc.
By focusing relentlessly on customer satisfaction, these companies build loyal customer bases that drive growth through repeat business and word-of-mouth.
2. Find an Underserved Niche
Identifying an underserved market segment and tailoring your product or service to meet their specific needs can be very effective. For example:
- Lefty's, a retail store, focused solely on products for left-handed people, an often overlooked niche
- Drybar built a successful business around just blow-drying hair, no cuts or color
- Divvies bakery specialized in vegan, nut-free, and gluten-free treats to serve customers with dietary restrictions
By narrowing their focus to a specific target market, these businesses were able to stand out and attract a dedicated customer base.
3. Form Strategic Partnerships
Partnering with other businesses can help you expand your reach and capabilities without heavy investment. Some examples:
- Spotify partnered with Uber to allow passengers to control the music during their ride
- Pottery Barn Kids partnered with designer Margherita Missoni on an exclusive collection to attract new customers
- Smaller local businesses often partner together for joint promotions and events to cross-promote to each other's customers
The right partnership can provide mutual benefits and help fuel faster growth than going it alone.