When Growth Slows, Ask Customers Why
When a company's growth decelerates, understanding the root causes is crucial before implementing new tactics. Customer interviews can reveal why desired behaviors are not occurring.
When business growth slows, many entrepreneurs turn to new marketing tactics such as posting more on social media, investing in SEO, or running paid ads. However, before adopting new strategies, it is essential to understand the underlying reasons for the slowdown.
Growth metrics indicate what is happening but not necessarily why. Companies often collect data that identifies bottlenecks in the sales or customer journey, such as low conversion rates from website visitors to demos or from trial periods to paying customers. These numbers show where to look but do not always provide a direct solution.
A common scenario is when website visitors do not book demos. Even if the conversion percentage remains the same, the reasons can vary widely: attracting the wrong audience, unclear product messaging, pricing issues, or unanswered questions. Choosing a solution without understanding the cause can be inefficient.
Similarly, if many users start a trial but do not convert to paying customers, the causes can be diverse. The problem might relate to usability, missing features, incorrect marketing targeting, or the customer simply not being ready to buy. An effective solution requires accurate diagnosis, often through customer interviews.
Entrepreneurs should start by identifying the specific customer behavior that is not occurring, such as ads not being clicked, demos not being booked, or customer churn. Then, ask the simple question: why is this behavior not happening? Answering this question through customer interviews helps identify the right solutions to drive growth.