Eager to establish a business that is both scalable and cost efficient? We outline 3 quick tactics you need to implement in order to foster growth and profitability — inspired by the successes of exercise apparel and accessory company Grymgrossisten.
Training apparel and accessory company Gymgrossisten was founded in 1996 and has experienced rapid growth ever since. Today, they’re the leading online workout equipment and nutritional supplement store in the Nordics. Their secret to rising to the top without burning their budget to get there lies in a simple, yet powerful philosophy: inject passion into your growth strategy, and always put the customer first. Here are 3 growth and profitability tips born from that philosophy that were revealed by Therese Hillman, former CEO of Gymgrossisten, during a panel discussion at NES 2015 — that are valuable to any retailer today.
1. Identify what your customers need– and hire a passionate team to meet those needs.
When it comes to deploying a cost-efficient growth strategy, it’s critical to focus on offering the products that your customers are most likely to buy — and it goes without saying that understanding your target audience is the foundation for allocating costs intelligently and steering your business towards profitability. Throughout their journey to success, Gymgrossisten learned that in order to connect with their target consumers, they would need to venture beyond a computer screen. Their team visited gyms and connected face-to-face with consumers to get a deeper sense of what types of products they were most interested in, the training and nutrition challenges they face and how a brand like Gymgrossisten can help solve them.
Equally important to understanding the needs of your customers is putting together a dream team that will help propel your brand forward. Hire people who have a passion for your business, its values and the future of your company. This team is an extension of your vision – likely the people who are sourcing your products, shipping to your customers or interacting with them to provide the best service possible.
2. Don’t exclusively rely on paid marketing tactics to expand your brand.
Once you’ve set your sights on the needs of your customers and how you can best meet those needs, and have built a team to facilitate your brand’s values and reputation, you’ll find that the feedback you receive from your customers will be your strongest marketing strategy. In their discussion, Gymgrossisten emphasized how a number of companies put too much focus on paid marketing that doesn’t always yield the best (or any) return. By focusing on satisfying your customers with relevant products and offering them memorable customer service, these customers are more inclined to recommend your brand to other shoppers through avenues like social media and online reviews – becoming brand evangelists who drive organic traffic and conversions to your store.
3. Be flexible (but realistic) with your company’s spending needs.
Therese Hillman, former CEO at Gymgrossisten, expressed that the company once had over a 100 employees in a location suitable for approximately 30 — simply because they could not afford a bigger office. However, expanding their headquarters at that stage in their journey just wasn’t a feasible option, so they found a way to manage the limited capacity in a way that was both conducive to productivity and comfortable for their employees. As the company grew, they were able to scale into a larger space that truly encompassed the Gymgrossisten vibe. Because they held back on purchasing a larger space, Gymgrossisten was able to allocate their budget towards other parts of the business that would impact their growth and get them to where they are today.
You can view the full discussion with Gymgrossisten below:
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