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Growth: The key to captivate digital consumers

Over the next ten years, it is anticipated that billion digitally native consumers to enter rapidly developing markets from Bangladesh, Egypt, Ethiopia, India, Indonesia, Kenya, Nigeria and the Philippines. To adjust to the behaviors of these consumers, companies need to reformulate their strategies and business models.

Today, digital consumers are significantly advanced compared to the old marketing and sales strategies, even those who did not grow up with technology. This change in consumer behavior is even more evident in emerging countries, where consumers have passed through several technological stages and have gone straight to mobile commerce.

Companies must adopt new strategies to connect with these native consumers, adjusting their positioning and growth strategies. Faced with this new reality, there are ample opportunities, but to take advantage of them and make the leap, it is crucial to thoroughly understand the consumer, their preferences, behaviors and needs...

Thanks to techniques such as Business Design and the culture of experimentation, we can embrace the reconfiguration of new business/product models that adapt to the new wave of digital consumers.

But how can they create customized and relevant solutions for each market, optimizing time and costs? By applying Growth, a business strategy focused on growth, customer acquisition and retention through constant experimentation and the use of data and analytics to make informed decisions.

 

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A strategy of growth helps to improve business KPIs by focusing on reduce the cost of customer acquisition, increase revenue and extend total customer value (Lifetime Value). Achieving as a result:

  • Achieve a positive return on investment (ROI).
  • Optimize costs and increase EBITDA.
  • Strengthen the company's value chain.
  • Improve customer satisfaction.
  • Consolidate the company's strategic positioning.

The Growth has proven to be a successful strategy for leading companies in the market such as Airbnb and Dropbox. Airbnb used Growth for rapidly expand and become a global hosting platform, optimizing its business model and experimenting with user acquisition strategies. On the other hand, Dropbox applied Growth by means of a referral approach and incentive programs, which allowed them to achieve exponential growth by encouraging recommendation and word of mouth among their users. These examples demonstrate how the Growth you can drive customer acquisition and retention, as well as the sustainable growth of companies in different industries.

The key to success Experimentation and agility

To apply the culture of experimentation in emerging markets, we can opt for the Business Design, a discipline that combines Design Thinking with business principles.

 

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This methodology allows the creation and validation of business models in an iterative way and in collaboration with the end user, through prototype design, proof-of-concept testing and market experimentation. The Business Design is particularly useful in emerging markets, as it enables companies to adapt quickly to changing consumer behavior and volatile market conditions. Rather than relying on intuition or market research, companies can create customized and geographically relevant solutions in which they operate, which increases the chances of success.

During the process of (re)building the business/product/service model, the companies work closely with local communities, This allows them to develop solutions that address specific problems, such as lack of access to financial services or limited infrastructure, thus facilitating the development of sustainable business models that respond to the social, cultural and environmental problems of the region.


The Growth and the Business Design are key tools that companies can use to apply the culture of experimentation, maximizing their revenues through the iterative application of the scientific method.


Through processes of ideation and co-creation, we can identify the needs and concerns of the users and build business models that solve their problems and generate value.

For example, let's imagine we are an e-commerce company and we want to expand into an emerging market like Indonesia. We could implement a strategy of Growth through the creation of customized offers for the local market, using demographic and behavioral data. We could also experiment with different marketing channels, such as social media and local influencers, to reach our target audience effectively. As we collect data and analyze the results of our campaigns, we can realize adjustments and optimizations constant to maximize our results.

The Growth and the Business Design are key tools that companies can use to apply the culture of experimentation, maximizing their revenue by iteratively applying the scientific method. This involves analyzing data, experimenting, focusing on the customer and optimizing all phases of the conversion funnel.