1 min read

Least cost growth model in 2024

Least cost growth model in 2024

Making your numbers in 2024 is harder requiring you to do more with fewer resources. Organic growth trumps acquisition so let's discover the four ways to organically grow and pick which one best suits your constraints and helps you achieve your sales targets.

First a little historical context. The seminal organic growth strategy model is the Ansoff Matrix, first published in the Harvard Business Review in 1957. What is the Ansoff Matrix, and how does it help sales and go-to-market?

The Ansoff Matrix is a 2x2 framework designed to evaluate organic growth strategies involving new markets and or new products. Markets occupy the vertical axis, and products or offerings occupy the horizontal axis. Each square in the Ansoff Matrix  equates to a specific organic growth strategy –

  • Market Development (bottom left) – Selling existing products in new markets.

  • Market Penetration (top left) –Selling existing products in existing markets.
  • Product Development (top right) –Selling new products in existing markets.
  • Diversification (bottom right) –Selling new products in new markets

The definition of Market can also be read as Customer or Segment or Sector to align with your needs. The key is to make decisions based on where the sales efforts will be focused. As there is no correct answer, many of our clients have allocated a proportion of their resources to more than one quadrant in an evolving matrix over the next three to five years.  As an example, they're allocating 20% of their resources to Market Development and 80% to Market Penetration. 

When faced with the challenge of fewer sales resources it's best to focus on Market Penetration.  This growth strategy means you sell the products you have and concentrate on growing market share by selling to companies that look a lot like your existing customer base.

There are no right answers and the value in considering your growth strategy comes from knowing where to point your sales team and when to say YES to a deal. Equally, your Ansoff growth strategy informs you of what to say NO to.

This directs sales teams to the most valuable customers, segments and sectors.

 

Why not join us at SpokeSpeak?  - a Sales and HubSpot focussed community that's open to HubSpot enthusiasts, experts and newbies as well as those of you who are simply Hub-curious 🤔 

Check out the next episode at SpokeSpeak.com

what does full cycle sales mean?

5 min read

what does full cycle sales mean?

Curious about Full Cycle Sales? Full-cycle sales is a sales model that requires the salesperson to prospect all of their leads and manage the...

Read More
What are the stages of the Sales Cycle?

6 min read

What are the stages of the Sales Cycle?

Check out our easy-to-follow guide to understand each stage of the sales cycle

Read More
reclaim your selling time

3 min read

reclaim your selling time

According to Gartner, if you carry a sales quota, your internal processes reduce your selling time by up to a huge 50%! Successful salespeople know...

Read More