Over the past few years, the Promote On Purpose team highlighted several business growth strategies and insights. As we kick off 2019, we’ve compiled 5 business growth predictions from our ongoing research:
1) A “Tiered” Recession is Underway:
Yes, it’s true. We are approaching a recession and the economy will be encumbered by it for the next few years.
Unlike 2008, however, most executives are well aware of this trend, as are investors. For example, Merger and Acquisition activity peaked in the first nine months of 2018, setting a record, and eclipsing a previous high reached on the edge of the 2009 financial crisis more than a decade ago. This is a clear sign that many brands see the writing on the wall.
What will be different about this recession, however, is that it will be tiered, affecting certain types of brands more profusely than the overall economy.
Specifically, this recession will thin the herd of unprofitable businesses…brands who didn’t prepare or innovate, as the access to debt funding will dry up quickly and the government is unwilling (or maybe unable) to introduce bail-out strategies because of its own debt challenges.
However, this isn’t a dire warning, at all, as this recession will be selective in its disruption. Smart companies can easily grab market share in this recessionary period, primarily because layoffs will be less pronounced (affecting mostly elder boomers) and because most people know the stock market is overvalued and aren’t depending on it for survival.
2) Millennial Purchase Power Elevates Companies Who Are Prepared
As Baby Boomers retire in record numbers over the next two years (encouraged by the selective recessionary layoffs), Millennials will benefit professionally and their purchasing power will expand significantly.
This market segment is known to be value shoppers compared to Baby Boomer parents who were mass consumers. Conversely, Millennials know what products and services (as well as brands) they want and will have the capital to acquire it.
Moreover, this generation requires an authentic relationship with the brands they purchase so advertising will be less effective in reaching them. They want to see online reviews, real social media interaction, product sampling, and free trials.
The companies that are prepared for this generation will experience a significant growth advantage in the next five years.
3) Innovation Overtakes Promotion
The 4 P’s of Marketing (Product/Price/Placement/Promotion) are slowly disappearing to be replaced by the 4 I’s:
New technologies are converging at a rapid pace. To compete, brands have to think differently about growth strategies.
Promotion will become less impactful (yes, we know that is our business and we are proud of that) as brands seek to innovate their way to growth. Part of the next wave of innovation is understanding that promotion is dying as customers seek information rather than just discounts and deals.
Brands that innovate by making information part of the marketing funnel will succeed and the ones who use ingenuity and integration will dominate.
4) Brands Experiment with Authentic Demand Generation
The Promote team saw this trend several years ago and acquired 2 brands to capitalize on it. Over the last 2 years, we developed an infallible methodology to authentically grow brands. We are so confident in it, that we guarantee a revenue-based ROI.
What is Authentic Demand Generation?
It’s an authentic methodology to build relationships with potential buyers, and serve them with information, knowledge, tools, PRIOR to them purchasing. Rather than trying to “get” people to buy, brands build relationships with their target market by serving them transparently.
The best part is that it builds loyalty BEFORE people buy, and prospects and customers actually become the marketing machine.
5) Conscious Business Strategies Take Root
Finally: Although greed isn’t gone, and profit still matters, conscious business strategies are starting to take root. Spurred on by organizations such as Conscious Capitalism and B-Lab, as well as the success of brands using their platform as a force for good, we see this trend growing in the next few years, for two reasons:
- The recession will change the marketplace as noted above.
- There is a new breed of consumer, that Gina Pell coined Perennials and they make very different purchasing decisions.
For brands to take market share in the next few years, we expect they will position themselves to capitalize on conscious business trends and shift from being single-handedly profit-driven and migrate toward making a meaningful impact.
So, what do you see on the business horizon for 2019 and beyond? Join the conversation and share your ideas!