In 2020, the Australian economy shrank by 7%, recording the worst recession in the last three decades. This automatically affected businesses in the country and had a roll-on effect on consumer spending. Although the country’s economy bounced back with a 1.8% growth in the first quarter of 2021, businesses continue to reel from the effects of the third COVID wave. However, part of the solution lies in strategising how to attract new customers. Indeed, several other reasons may account for your failure to attract new customers, so take a look at the list below.
- Lack of target audience knowledge
Every marketing activity involves knowing the target market. Without this crucial element, your business will, at some point, lack direction and record low growth. Knowing your target audience helps you to develop an effective communication strategy. This means you have background knowledge of the group your company is serving. Your business will be well-positioned to tailor-make content, imagery, and voice creatives to suit the target market, equipped with this information.
Unfortunately, a common mistake most businesses make is to rest on their oars after making impressive gains with existing customers. New customers form the key to business growth, and they get the word around. Through them, your company gets an understanding of the diverse divisions within your market. The moment you fail to draw more customers, you run the risk of running the company down.
- Weak or non-existent social and digital presence
Australia’s internet penetration rate stands at 88% (2021 stats). In a further breakdown, it means 22.31 million of the population has access to reliable internet connectivity. The interesting bit about the country’s internet penetration rate is that from 2019 to 2020, it saw a growth of 265,000 new internet users. For businesses, this is excellent news. Considering that the pandemic created a massive demand for business digitization worldwide, it makes sense that many came on board.
What about your business? Did you pay attention to the digitization move? If you didn’t, it could be one of the reasons you’re failing to attract new customers. Leading the digital transformation of businesses is something called Search Engine Optimisation (SEO). It is how internet search engines recognize your business. For example, if you run an undertaker business, your company should be listed on multiple search engine results when anyone searches for ‘funeral home near me’. It involves doing a lot of work on your website and social media pages to get noticed. A company in the 21st century working without a robust digital presence will certainly draw no new customers.
- Bad location
Where is your company located? Do you operate from a hard-to-reach area? Additionally, are you plying your trade from a place where competition in your line of business is physically crowded? For instance, if you find yourself operating from an area where everybody else sells computer hardware as you do, you may have to rethink your company’s location.
Another issue with poor location is when businesses move around too often. A famous example was the Australian establishment, Nerd Cave. This start-up company moved spots three different times in a short period. Over time, their customer base dwindled, and getting new clients became non-existent. The sad part is, the business collapsed (of course, coupled with other problems).
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Vinh Van Lam & Stuart Horrex
Your Coaches ArtSHINE industries
