Return on investments significantly goes up when demand stimulating is optimized
Growth Service focus area — by subcategory services,
The highest focus area is Demand stimulation activities at 74% under retention efforts. This supersedes other subcategory services as once a solid growth system is in place, one of the sweet spots for enhancing growth is Demand stimulation activities.
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A 5% increase in retention produces a 25% increase in profit, a significant focus area for demand stimulation as the main purpose.
Demand stimulation activities are a natural evolution of a robust growth system. Once revenue has been acquired and retention activities occur, stimulation activities are possible. The main goal is to increase consumption, which is undertaken by looking into
- Value creation,
- Value enhancement,
- Value-added activities, and
- Value realignment
These value-focused activities are optimal at the Demand stimulation stage. This is because the initial value has been established, but the value needs to evolve to retain further and grow revenues. This is often best in evaluating problems created:
- your solution as a byproduct,
- issues not addressed well enough, and
- issues not addressed at all.
Getting pinpoint-focused on creating superior value based on an already established trusted relationship creates significant growth at a much lower cost.
A growth system is vital to stimulating demand; when the growth system is well optimized, this enables overall growth to become exponential. This is even more valuable to growth when you can stimulate more demand for retention purposes. When this is done well, not only does retention work better, but the next step of growing existing revenue becomes much more accessible. This paves the path for long-term and more sustainable exponential growth.
Return on investments significantly goes up when stimulating demand works. The initial cost of customer acquisitions goes down with time and the customer lifetime value goes up. In some cases, utilization rates within the total lifetime value dramatically increase with a 90%+ impact on overall gross revenue.
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GROWTH HACKING SERVICE BUYER BEHAVIOR REPORT
A new study conducted by Growth Thinking, which analyzed 2,150 growth service buyers across 10 industries, found that 86% of growth agencies are — in fact — not growing.
These buyers, which represent $350 million in annual spending power, were surveyed over a period of 24 months. Some key findings in the study include:
- The top issue among those 86% not growing is talent;
- The average cost to switch from in-house to external providers is $48,241; and
- 55% of first-time services used are from freelancers.
The study takes a deep look into spending behaviors, the type of growth hacking services in most demand, and switching costs and reasoning.
Read the Growth Hacking Service Buyer Report by clicking here
ABOUT — Growth Thinking
Growth Thinking is a design methodology for growth hacking by the bestselling author of Ready Set Growth Hack, Nader Sabry. It has been applied as a book and a $1 million challenge known as the 10-day growth hacking challenge, which has generated $138m in revenue. This methodology has been adopted by universities like Harvard and Stanford, fortune 500s (Google/Microsoft), and unicorns.