It’s never been easier to start a business than today. The stats don’t lie, and they say that, on average, there is a 3.5% increase in startups each year. Currently, nearly six million companies are trading under a British licence. For entrepreneurs, this is a cause for celebration.
After all, you can finally be a successful boss without being excluded from the boy’s club. All you need is an internet connection and a gap in the market. Of course, success is by no means guaranteed, not when the market is saturated. And that’s your biggest problem: competition.
So, what does this influx of new organisations mean for your firm?
Standing Out Is Essential
Catching the attention of customers has never been harder. Even scarier is the fact that you need constant sales and leads to stay in the black and out of the red. The only logical conclusion for new businesses is that standing out from the crowd is pivotal. However, it’s not as straightforward as launching a product or service and turning over millions. From content marketing with the help of a quality SEO company to analysing Big Data, you must invest in modern marketing methods and do your research. Otherwise, you risk being left behind and losing your market share, regardless whether your sector is deemed as ‘market saturated’.
Small Issues Have Significant Impacts
Another factor of market saturation is how small problems can escalate into something huge. Take pricing as an example. In the past, you priced based on a couple of factors, yet you never gave it too much thought. Today, this lack of forensic analysis could encourage customers to bounce to rival competitors. If their perception is that your products or services are unnecessarily expensive, they’ll vote with their feet (and smartphones). Understanding the basics of pricing, and the fundamentals of the industry have never been as crucial.
Loyalty Is Dead
Staying with the theme of customer bounce rate, they’ll happily shop with companies that will give them the cheapest offers. Loyalty is no longer an issue for consumers because it’s about cutting costs. As long as they can trust you, or your rivals, they’ll jump ship for a couple of pounds, hence why the likes of Aldi and Lidl have been successful in recent years. Therefore, it’s savvy to contemplate the best ways to keep customers on your side, new and old. Loyalty programs and discounts work, but they only go so far. Mostly, people want to feel valued, which is where personalisation comes into play.
Morals Are Powerful
Morality is creeping into how people make buying decisions due to the level of choice at their disposal. In the past, consumers couldn’t decide to only opt for vegetarian or vegan products or services as they were few and far between. Now, a vegan bakery or cafe is a staple of most high streets in the UK. As a result, this has permeated into the public consciousness, meaning businesses’ supply chains must be transparent. A company that lies could be boycotted or de-platformed.
Are you ready to handle the side-effects of market saturation?