Do you run an online store? Find out how to increase company’s profits without the need to expand the range thanks to innovative sales tools.
Currently, most e-entrepreneurs rely in their businesses on selling products to mass audiences, offering a wide range of products. Diversification enables a company to increase the area of operations and the target group, thus gaining a chance for higher profit. However, brands offering a narrow range are not doomed to fail – on the contrary, the increased demand for niche products can translate into business success. How to effectively increase sales without expanding a product range and scope of services?
Diversification strategy for large enterprises
The diversification strategy within B2B and B2C is one of the most complex strategies implemented mainly by large businesses. It may refer to products, services, suppliers, customers, markets, as well as business structure. Diversification is determined by many factors, for example, uncertainty of the environment, company’s financial situation or lack of opportunities to specialise in a given field. The benefits resulting from expansion of the company’s operating zone include primarily development and maximisation of the company’s growth rate, reduction of the probability of financial losses or strengthening the market position.
Despite many advantages resulting from expansion of the product range, it will not be profitable for every company. Regardless of whether it is related to the B2B or B2C model, diversification involves large expenses that a company must incur. These may include the purchase of new goods, hiring additional staff, creation of separate websites or marketing-related costs. Small businesses that are just building their market position cannot afford such activities. Distraction is also one of disadvantages of diversifying the range. A much simpler solution is to choose a narrow scope of activities with a specific target group. Vertical markets, where trade takes place within a single industry, offering a narrow range, are an opportunity for small companies to enter the market.
Vertical markets vs push notifications
An increase in demand for niche products can translate into a company’s success provided that appropriate marketing and sales tools are used. One way to communicate directly with recipients is push notifications. In this case, the appropriate segmentation of the audience is crucial. Thanks to the collected data about users, you can provide them with customised offers, i.e. propose exactly what a potential customer expects.
Vertical markets within B2B and B2C assume selling niche products, which is why in some cases it is necessary to educate recipients. Push notifications for B2C help present consumers with new solutions or possibilities of using products. In addition, thanks to the use of tags that allow for precise segmentation, it is possible to track which products were viewed by subscribers, and then target an advertising campaign at them.
Push notifications also give an opportunity to inform recipients about new collections as well as unfinished transactions, i.e. an abandoned cart. Lack of diversification does not mean that a company cannot grow. Using the niche and limiting the range can be a really good idea for beginners who are just entering the market and consistently implement the sales and marketing strategy.