September 21, 2023
The global eCommerce space is exploding and is well on its way to becoming an $8 trillion market by 2027. This skyrocketing trend gives every online business owner a lucrative opportunity to scale their E-tailer and boost growth.
However, scaling an online business needs the right plan. An unplanned scaling effort could quickly lead to unnecessary expenses, hires, or a supply chain that's grown out of control.
Conversely, missed scaling opportunities at the right time could result in unfulfilled orders, lost market-capturing chances, and unfinished tasks.
Fortunately, there are a few proven strategies for scaling an online business successfully and without breaking the bank. Here are the top four such practical tips for managing all of your scaling efforts–from cash flow to tech infrastructure–like a pro:
When thinking of streamlining operations, many delve right into process automation. However, a well-orchestrated operation starts with identifying areas in your online business that can be (and need to be) automated.
Ideally, you want to map the process visually and iron out redundancies and inefficient operative steps.
Identify bloated or redundant operations and employ AI and automation to streamline the processes. Also, check the ROI to ensure the valuable resources outweigh the cost and time saved because of automation.
As the business scales, you'll also find areas that need specialised skills. However, initially, hiring personnel might not be the best financial move. The more cost-effective solution is outsourcing non-core activities.
While the needs of outsourcing will be unique to each business, some common non-core areas can include:
However, outsourcing will expose certain aspects of your online business, like HR, recruitment, and payroll, to the delegated individuals or agencies. Therefore, always outsource only to trusted partners and check their reviews and past customer experience.
Brownie Tip: Always sign Confidentiality Agreements (CAs) before starting the contract.
With more employees, time, and tools gained from scaling, you'll have the resources to expand your market reach and tap into new segments. This means putting your money into new digital marketing strategies.
Start by exploring market research techniques to find new prospects for your business. With new offerings–new or upgraded products and subscriptions–tap into different markets. Scale your social media marketing, SEO, and PPC efforts to reach a wider target audience.
When scaling, you may be tempted to invest in all social media platforms to expand your brand's reach. The trick to success, however, lies in choosing the right platforms for marketing your business and zeroing in on all your efforts and advertising strategies on these selected channels.
For example, if you provide cloud storage solutions, you'll find your ideal audience on LinkedIn (IT managers and CEOs of SMBs). Thus, investing in LinkedIn content creation and ads will yield better results.
Next, strengthen your business' basic SEO with on-page and off-site optimisation. This includes compelling title tags, meta descriptions, internal linking, backlinks, and social media engagement.
Alongside, leverage the power of paid ads to drive business through:
The targeted ads will encourage customers to make a second visit by reminding them of abandoned carts, special deals, and new products.
Scaling your business should not stop at increasing sales but also diversifying how you generate revenue. It directly impacts your financial health and business's sustainability. An enhanced revenue stream will allow you to invest in better growth opportunities, expand operations, and scale without bounds.
Depending on your industry, the most common revenue streams can include:
However, the ideal choice for online businesses is:
Broaden your product and service ranges to reach new markets. This includes introducing complementary services that align with your core offering or creating a new product segment.
Print-on-demand is one such low-risk, scalable option with minimal upfront investment. For example, with a certain order value, you can offer branded merchandise like mugs, t-shirts, or posters. The best part is that you can use print-on-demand services, so the extra revenue stream doesn't increase loads on your inventory or employees.
Digital products, like courses, eBooks, and software, are also sustainable options. They have virtually no production costs and can be sold repeatedly without the need for inventory–a win-win for your online business.
Acquiring a new customer is 5 to 25 times more expensive than retaining an existing one. So, unless you have an unlimited budget, you have to invest in building brand loyalty. Despite alternatives, you want the customers to remember and prefer your brand to any other.
It's crucial not only because brand loyal prospects will become repeat customers. But they'll also recommend you to their peers, and they'll become your brand ambassadors on social media and in the real world. More importantly, your brand loyalty is an overarching indicator for vital metrics like:
However, building brand loyalty takes time. You have to nurture the customers. Plus, customers make multiple purchases (at least three) to consider themselves loyal. Here are some proven ways to ensure this happens as you scale:
Content marketing is an effective way to stay connected with the audience throughout the journey. So, create engaging content that addresses your target audience's interests, needs, and pain points.
Diversify the content strategy using varied formats such as videos, social media posts, blogs, and infographics. This will ensure you are reaching every audience segment with fresh content.
YouTube creators have mastered how to build trust and influence their audience. Partnering with creators whose values align with your brands and target the same segments–you can reap this loyalty for your brand.
The best way is sponsorship. Sponsoring their videos can increase brand visibility, earn credibility, boost loyalty, and even build emotional connections with new prospects.
A successful YouTube sponsorship example involves brands leveraging the best true crime YouTube channels to build trust and loyalty by reaching and engaging with diverse audiences. This includes top brands like Casetify, NordVPN, and Hellofresh. So, depending on your business, choose channels and start a YouTube sponsorship program as your business scales.
Personalise the rewards program for each customer based on their location and habits. Gamify the program to hook people. It could be as simple as adding a visual sparkle for mini dopamine hits or tiers to your program (such as the more you shop, the better the reward).
Also, use the Customer Effort Score survey to ensure that collecting and redeeming rewards is not more of a hassle for customers than it's worth.
Rewards your loyal customers for bringing in new ones. Create a loyalty and referral program that fits your business model. The most popular options include:
Look for successful program inspiration from your industry with brands like Starbucks, Sephora, Amazon Prime, etc.
Brownie Tip: If you opt for a paid rewards program (like Amazon Prime), consider adding flexible payment options.
Scaling an online business is a whole different ball game–and, luckily, a much easier one (given the abundance of tools and tech to shoulder your burden). However, it still needs the same, if not more, dedication.
From choosing the right automation tools and personnel for scaling operations to designing the most compelling content and reward programs, it is still an uphill battle. Plus, it's never-ending. Yet, that's where the magic happens–because the growth never stops.
Remember, scaling is not just about growing revenues. It's about evolving as a leader, improving your business, and discovering new opportunities you didn't think were possible.
So, roll up your sleeves and start scaling your online business using the above strategies. Do right by your biggest supporters (customers and stakeholders), and they'll stick around as you shoot for the stars.
