Many new businesses and start-up companies often find it difficult to get off the ground. Finding enough capital to fund a developing business and keep it running can be difficult for a company that has not had sufficient time to prove itself in the marketplace. By creating business traction, new companies can attract potential investors and gain a competitive edge in their industry.
Business Traction: The Definition
Business traction refers to the progress of a start-up company and the momentum it gains as the business grows. When traction is lacking, sales dry up and the customer base dwindles, regardless of the effort put into the enterprise. It applies to nearly any kind of business, whether service or product-oriented, or whether it sells to the public, other businesses or the government sector. There is no one way to measure traction, however, companies usually rely on customer response and revenue as indicators of their success.
Maybe surprisingly, profits do not necessarily make for traction; companies such as Amazon, Tesla and Uber have excellent traction but have only had sporadic profitability, if at all. The reasoning behind developing traction is to grow the business while meeting specific company goals and objectives. While traction may be a seemingly abstract concept, it is important and helps a company understand where it stands in an industry and where it would like to be.
How to build traction for your new product or service
If you’re launching a new product or service, focus on these four strategies to maximize your customer traction.
#1. Create and Test Engaging Social Media Content
Developing social media content that resonates with your target audience is a great way to gain customer traction. Rather than taking a scattershot approach, it’s best to commit to a particular message and test it socially until it gets traction.
#2. Go Where Your Customers Are “Hanging Out”
The best marketing campaign won’t gain traction if your customers don’t spend time on that platform. To make the most of your efforts, figure out where and how your ideal customer likes to shop, giving you the best chance of getting your product or service in front of them.
#3. Get Feedback From Your Existing Customers
In addition to potential customers, talking to current customers can provide valuable feedback regarding your product or service. Online surveys, Zoom meetings and even observations can help you better understand your customers’ needs. Once you’ve received this feedback, analyze the results and adjust your offerings accordingly.