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Profitable growth refers to organic and inorganic growth with the potential for high margin and high growth.
The world’s largest companies have a common problem: struggling to achieve sustainable profitable growth in a world where their offerings are increasingly commoditized.
In addition to increasing competition, they face disruption from agile digital companies, which target their customers with offerings:
- Innovative
- Convenient
- Personalized
How to achieve profitable growth.
Often, their response is to cope by trying to engage customers as aggressively as possible. But while obsessing over new customer acquisition, many traditional companies neglect their most powerful competitive advantage: their broad customer base.
On the negative side, making up for the value of one lost customer may require the acquisition of three new customers.
On the positive side, 80% of the value creation achieved by the world’s most successful growth companies comes from their core business: selling more things to their existing customers.
These companies have perfected a powerful strategy to drive profitable growth that their more nimble, disruptive competitors cannot emulate: consistently and proactively deliver a distinctive customer experience (CX) that entices existing customers to continue to choose their brand.
What is the right strategy?
Mckinsey calls this strategy “experience-driven growth.” For this consulting firm, companies should start by defining a desired financial outcome, and then prioritize the customer experience improvements that will deliver that outcome.
McKinsey’s studies show that even these companies dare to:
- Rethink their corporate culture and operating models.
- Drive innovation and technology adoption.
- Create new service experience measurement and analysis capabilities.
Sometimes they must reexamine and redefine their very raison d’être. In all of them, a pillar of their management is based on focusing on customer experience as the central axis of their strategy, to help your company on this path is the customer experience software www.allswers.com.
