Growth is an important part of any business and it’s no different if you have a CNC business. Whether it’s bringing on new services that you don’t currently offer, like CNC milling, or investing in new technologies and conducting in-depth market research, we explore some of the most effective ways to develop your CNC business.
Customer segmentation is the process of categorising your customers or prospects to help you define who they are and what they need from your business. This helps you connect with them more meaningfully and provide marketing messages that will resonate with them. When done correctly, your marketing will be more effective and provide a bigger return. In addition, segmentation also prompts you to improve your service if you identify new customer needs. Firstly, decide what your clear segments are then group them using the following criteria:
- Size of the business (staff numbers and turnover, profit)
- The percentage of sales from each
- The services they use
- You can also use demographics like age and gender
- Using the data, create customer personas to form strong marketing messages. To gain the information you can use surveys, feedback forms, and follow up sales emails. Expand your service offerings
Your segmentation analysis may have highlighted a new set of customer needs. For example, if you are providing CNC turning services, you could diversify into CNC milling to gain more business while also appealing to new customers. In this example, further investment in equipment is necessary so you will need to consider the costs involved. However, offering new services is a key tactic for growth and offers a new revenue stream to help build stability in your business too. Be mindful not to rush the process, as new services can take your time away from your existing operations. Make sure you have the right people and machinery resources in place, and ascertain that the demand is there. By focussing on new capabilities, you are potentially offering a better service to existing clients with a renewed opportunity to seek more business from you and contribute to your growth.
Embrace new technology
Technology has affected every business on the planet, and it has made its unique imprint on manufacturing too with automation, AI and IoT technologies increasingly present in manufacturing operations. Adopting the right technology and equipment helps widen your offering, grow further, stay ahead of competitors and retain existing customers.There are lots of established and successful CNC businesses, and in order to stay ahead you may be faced with having to invest in new technology. You will need to consider the costs involved and whether you can upgrade some of your equipment in some cases, rather than replacing. This is less expensive and will also help you continue your growth plans.
Form new strategic partnerships
For new CNC businesses, it can be challenging to get off the blocks in the beginning. One of the best ways to start is through developing new strategic partnerships with similar businesses to yours. Balancing supply and demand can be challenging in the early days, with no previous work to refer to for forward planning. This is especially the case when you have other logistical issues related to starting up to also manage. Positive connections with other CNC businesses can be useful in helping you meet new customer demands, and is a way in which both you and your new partner can benefit. By going to industry networking events and conferences you can begin meeting more new people in your industry and start building those connections.
Whether you are a new or established CNC business, you will need to have growth plans in place. It is important for the success of your company and with the rapid pace of change through technology, it is essential for growth