How to Achieve Hyper-Growth in a Slow Market
by David Letourneau, on Dec 31, 2019
With the help of technology to optimize your processes, you can shift some ﬁxed costs into variable costs—that are ﬂexible and easily scale up during peak times and back during slower cycles without increasing overhead or sacriﬁcing quality of service. This will allow you to be more innovative and to scale intelligently.
Scaling intelligently allows you to experience increased efficiency, better performance, and reduced costs. It allows you to reprioritize critical talent and create a culture of hyper-growth.
1. Outsource Services
Outsourced order fulfillment refers to hiring a third party to manage some or all aspects of the order fulfillment process, including carrier procurement, operations management, billing, RFP bidding assistance, and more.
It may seem like a risky option: the company you outsource fulfillment to should be a true partner for your business, not just a transnational vendor.
Outsourcing order fulfillment processes to a 3PL company means they handle services on your behalf using their infrastructure, workforce, and technology.
This helps the business optimize its human capital and concentrate on growth, rather than day-to-day admin and operational tasks.
Take Carggo for example. Our customers have been able to increase their share of the wallet without increasing overhead. How? By leveraging AI-fueled freight technology and operations management services to offer instant pricing, automated freight matching, real-time freight visibility, and paperless documentation to reduce labor and risk while being able to help customers when capacity surges arise.
2. Increase the Wallet-share of Existing Customers
When a customer comes to you to transport a load, you want them to have the best experience to become a repeat customer.
To achieve, this you need the technology to automate tedious tasks. Increasing your share of wallet of existing customers is one of the easiest strategies to grow your business.
Firms that have a small share of wallet enjoy an opportunity to develop and sell new services to existing customers or to help existing customers with additional capacity needs arising from spikes in volume or last minute shipping needs. (Consider ﬁnding partners who are experts in those areas so you can expand your services without having to increase overhead.)
Remember the golden rule of sales? 80% of your business will come from only 20% of your customers. Focus on your best clients and observe how they ship. When you know who your best clients are - take good care of them. Focus on those who already know and trust you. Keep them updated and informed and your business will grow.
By becoming more efﬁcient and automating tedious tasks, you will have more bandwidth to take-on additional capacity or to help a customer out when they get hit with a sudden surge or have last minute lanes to cover.
3. Improve Your Competitiveness
But this doesn’t mean that you shouldn’t be trying to obtain new customers. The purpose of business is to gain and retain customers - not rocket science! In fact, your ability to acquire new clients corresponds with your level of competitiveness.
To be competitive, you need more than just competitive rates, you need to be able to add value—for new and existing customers. Some customers are looking for real-time freight visibility with proactive alerts to keep their supply chain on time and reduce transportation related expenses such as detention.
Others are looking for ways to reduce costs and increase productivity, which can be accomplished using interactive reporting dashboards that show efﬁciencies at the lane and facility level.
4. Plan, Build, Market
While adding value is great, you need a good marketing plan to attract and retain customers. The old adage “if you build it, they will come” is no longer true. You need to build it and then market it so people know how amazing you are. Think of a marketing plan as your guide to success. It tells you how to develop your services to satisfy customer demands, communicate the beneﬁts of your products and services to your potential and existing customers, and guarantee customer satisfaction.
This is a relationship driven business; if you aren’t optimized and leveraging the latest technologies to meet your customers’ needs, you are leaving money on the table.
The strategies laid out here will help you be the hero for your customers and internal teams. By being constantly on guard for new opportunities, businesses are able to innovate to meet evolving customer demands—driving future revenue streams without increasing overhead or sacriﬁcing quality of service.
Get started today with a 15 minute intro to learn how Carggo can help you scale intelligently and improve your quote to acceptance rate by over 10% without increasing your fixed costs.