Tag Archive for: hyper-growth companies
A company on the rise is always at its best: they’re profitable, growing rapidly, and attract a lot of attention. Sound familiar? If so, you might think of companies like Facebook, Uber, Pinterest, or Snapchat.
In fact, these are simply the best-known companies. There are 31.7 million small businesses in the U.S. and 10.75 million employers. How do you stand out in a crowded field like that?
Companies who are able to accomplish fast growth aren’t simply in the right place at the right time—although timing may play a role—they have specific traits in common that make them grow rapidly from one year to the next.
“These companies go from zero to hero,” said Chris Myers, author and CEO of B:Side Capital. “They can do it in a short period of time.”
There’s no magic formula for becoming a hyper-growth company but these three habits are common among companies that are able to achieve rapid growth.
Companies on the Rise Constantly Iterate
“The companies that are constantly iterating are growing faster than companies that aren’t willing to move beyond the current model,” said Myers, whose company helps small businesses automate their backend operations.
He says companies like Uber and Netflix continuously improve products based on customer feedback.
Any company with ambitious plans can implement an aggressive customer feedback program.
“These companies have an almost maniacal focus on improving at a much faster pace than anyone else out there,” he added, “and it really sets them up for long-term success.”
Hyper-Growth Companies Still Spend Smartly
According to Myers, companies should focus on what he calls the “three C’s”: companies, customers, and culture.
“If you prioritize those three things, companies will grow,” said Myers. “The companies that prioritize all three of those things grow incredibly fast and companies that don’t—and try to cut costs in one of those areas like culture—don’t grow at all.”
Successful companies know how to execute well, and as such, they need to spend capital strategically. That often means hiring coaches, agencies, and experts to expand internal expertise and move the needle more quickly than hiring internally would have.
Large ticket items should be considered investments and supported accordingly. Don’t hire an agency and then ignore their progress, be sure your team is engaged and collaborating constantly with your agencies.
Fast-growing companies can lose track of their financials quickly, so be sure to identify which of the three C’s every expenditure contributes to, right from the start.
Don’t Ignore Problems Early On
Companies that achieve hyper-growth are constantly looking for the small problems that could become big ones down the line.
“It’s easy to solve problems when they are small,” said Myers, who suggests companies conduct post mortems on failed projects or initiatives in order to avoid repeating them in the future.
Additionally, companies on the rise should implement a process of continuous improvement at every level of their organization. Ask employees what could be improved about the work environment. “Within six months you’ll have hundreds of suggested changes,” said Myers.
One of the biggest mistakes that consumer packaged goods companies make is assuming that consumers are only interested in shallow, colorful, brightly designed packages. Consumers care about who makes their products and where they come from. Setting yourself apart in the crowded CPG market is about more than making a good visual impression. Loyalty and brand recognition come from carefully curating your image and making a connection with your target audience in a meaningful and positive way.
Hiring a purpose-driven PR firm can help hone your message to consumers. This type of firm can also place your message in strategically valuable media outlets to get a foothold in a competitive marketplace. Navigating these strategic PR campaigns can be labor-intensive. An experienced PR firm can provide the professional support you need for brand growth and visibility. Investing in a PR agency with CPG experience may be the right move for you, especially in today’s economic climate and competition.
What are CPGs?
CPG, or consumer packaged goods, are products that are consumed by customers regularly and require routine replacement. These types of goods generally have a short shelf life. CPGs include food items, clothing, makeup, cosmetic products, and household goods. The market may feel dominated by big-name brands with extensive marketing teams at their disposal. However, now is the right time for emerging brands to take advantage of PR to increase their brand awareness and visibility.
CPGs and Consumers
Consumer packaged goods companies are one of the largest manufacturing employers in the U.S. The industry itself contributes nearly $2 trillion to U.S. gross domestic product and generates $1.1 trillion in labor income. What does this mean for the industry itself? It means the industry is not only profitable but also highly competitive. Brands are consistently competing for the attention and the hard-earned dollars of everyday Americans. When store shelves are saturated with products, brand recognition becomes an important factor in relation to consumer buying habits.
Consumers buy brands they recognize and trust. This relationship between the brand and the consumer does not happen overnight. It develops over time through carefully crafted messages aimed at the right audience. Once a consumer develops brand awareness, they are more inclined to continue buying the product they know the most about. Good companies will continue to foster their relationship with consumers by the following approaches:
- Staying in touch with their needs
- Managing expectations
- Generating targeted messages aimed at increasing consumer loyalty
Companies can adapt and market towards their target consumer base by keeping a finger on the pulse of consumer awareness and buying habits.
How PR Can Help CPG Companies
Any economy can experience supply chain issues, rising costs, and product shortages. These issues rarely leave a positive impression on the consumer. The rise of social media has shown us that misinformation or negative sentiments can quickly sour an individual’s image of a brand or company. As misinformation spreads, so do negative consumer responses. Now more than ever, companies need to take a proactive approach to communicate with consumers. PR firms can help CPG companies achieve their communication goals by leveraging their influence with media outlets and crafting stories that positively resonate with their audience.
Public relations agencies specialize in helping their clients generate and distribute information about their business. Public relations is sometimes lumped under the marketing umbrella. While the two share similar goals, they are not the same. Public relations agencies know how to leverage free media, which does not cost a company anything to distribute, unlike paid ads or spots.
PR firms can be crucial in helping CPG companies create purpose-driven, helping to increase brand recognition. Brand recognition helps companies stand out from the crowd and sets them apart from their competition. PR firms can also assist with story placement in local news, newspapers, magazines, and national news organizations, letting customers know that you are out there in the marketplace. With strategic PR campaigns, brand awareness grows and can translate into more sales. With continued PR saturation, what was once brand recognition turns into brand loyalty. One-time customers turn into repeat customers, and sales may continue to rise.
Another benefit of using a PR firm for free media is credibility. Consumers know that when a company pays money for a commercial, billboard, or web banner, they are looking at a carefully crafted image designed to get them to spend their money on the product. PR agencies work strategically to place stories in free media. Free media adds an air of credibility to a company because the company did not directly pay to get its message to the consumer. For example, a story airing on a local news station about a company’s recent good deeds in the community can give the company both brand recognition and credibility.
A skilled public relations firm with experience in the consumer packaged goods industry should be able to help you reach your goals by:
- Increasing visibility and credibility
- Increasing brand recognition and brand awareness
- Strengthening customer relationships and building brand loyalty
- Generating positive word of mouth
- Building community relationships
- Reducing repetitional risk
- Meeting consumers communication needs
Strategically crafted public relations campaigns can help a CPG company connect with its target audience in more meaningful ways. Building an emotional connection between a consumer and a company is powerful. This connection can eventually translate into more sales and more repeat business for your CPG company.
During difficult times, the first thing that companies often cut from their budgets is marketing or PR. Right now, PR and marketing are the last elements of business that should be on the chopping block. The time is ripe to get your message out to invested consumers desiring authentic and sincere communication. Take this opportunity to connect with your consumer base on a deeper, more intentional level and see how it translates into a better consumer-client relationship.
If you are interested in what a PR agency can do for your CPG business, now is the perfect time to explore your options.