What is the foundation your go-to-market strategy? Is it the assumptions you’ve made about the industry? Or detailed data that tells you exactly what’s happening in your market?
Agribusinesses who want to make the most of the constantly shifting and, currently, turbulent agriculture industry need to modernize their decision-making. Only then can they maximize their resources toward growing their companies and serving more farmers.
When you’re spending money and time on marketing and sales initiatives, you want to maximize every dollar spent. But how do you know you’re targeting the right group of farmers who---
---have a tangible need for your product?
---are able to afford your product?
---understand the value that your product gives them?
---see why you’re the best company in the market to provide them with that product?
In the small but mighty agriculture market, you have a limited number of customers who are a good fit for your business. You need to know who those people are before go-to-market, otherwise you’ll be spending your time and attention on the wrong people.
And you want to make sure that your marketing and sales teams are aligned with your business objectives. Otherwise, your team will be rowing – and spending – in different directions, getting you no closer to your overall goal.
Here are three reasons why you should modernize your decision-making process to improve the results for your agribusiness, and how data-powered insights can help you do that.
Make informed, strategic decisions faster.
A lot of businesses outside of agriculture talk about strategy being a primary objective of those in leadership. But the reality is, few executives are devoting the necessary time to building and communicating their strategy.
- 70 percent of leaders spend less than a day a month on reviewing strategy
- 86 percent of executive teams spend less than one hour per month discussing strategy
- 85 percent of leadership teams spend less than one hour per month discussing strategy
- 20 percent of organizations review strategy execution monthly
For agribusinesses, having data analysis easily accessible to you and your team can help you make the right decisions quickly and easily:
- Find out in which counties and states you ideal customers are located by cross referencing geographic information with demographics like crop type, farm income, age, acreage and more
- See how much potential is in new markets whether they're good enough to get you to your revenue goals by looking at how much farmers spend
- Segment your market share so you’re looking at how much share you have among your target demographics to gain a more precise and accurate view of where you stand in the market
- Look for new markets to penetrate by theorizing new use cases and coming up with the groups of farmers that fit those use cases---then identify how many farmers actually fit within those demographics
- Examine your current customer base to see how much share of wallet you currently have so you can adjust and expand your wallet share
These are just a few examples of strategic decisions you can make with access to the right agriculture data and analysis tools.
Stay ahead of your competition.
Data-driven strategy may the norm in other industries, but it’s less common in agriculture. That means that if you do choose to invest in data analysis, odds are you’ll be gaining a leg up on your competition.
Here are a few stats that demonstrate how companies outside of agriculture became more competitive through use of data analysis in strategy:
- 70 percent of organizations that used a formal process to manage strategy out-performed their peers.
- 75 percent of successful companies have a formal and pre-established system to inform and manage their strategy.
- 88 percent of businesses say that successfully executing initiatives or projects in order to deliver strategic results is very important or essential for competitiveness.
Your agribusiness can stay one step ahead of the competition with the data you need. Here are some examples of how to do that:
- Make sure you’re spending your time and energy going after a market that’s going to get you closer to your revenue goals, expand your footprint into the right market, and grow your market and wallet share.
- Target your communications and marketing messages to the specific needs of a specific segment of farmers, and deliver your ads and communications directly to those farmers through email, online ads, social media and direct mail.
- Send your sales reps into the field to talk to those same growers, armed with the knowledge to have meaningful conversations that help to solve farmers’ needs.
Implement your strategy through actionable steps.
A strategy is only effective as its implementation. And implementation is easier said than done. An overwhelming 98 percent of leaders think that strategy implementation takes more time than strategy formulation, and 90 percent of organizations fail to executive their strategies successfully.
Only 11 percent of companies employ a “fully-fledged” strategic control system. 10 percent of organizations achieve at least two-thirds of their strategy objectives, with 36 percent achieving between 50-67 percent and 54 achieving less than 50 percent.
Here are some other stats to keep in mind:
- 2 percent of leaders are confident that they’ll achieve 80-100 percent of their strategy’s objectives.
- 92 percent of organizations don’t track the key performance indicators that tell them how well they’re doing in competition.
- 65 percent of companies are “somewhat ineffective” or worse at introducing change caused by strategic initiatives.
- 29 percent of organizations react so slowly that they can’t seize fleeting opportunities or mitigate emerging threats.
- 24 percent of organizations react to opportunities quickly but lost sight of company strategy.
If you want to outperform the other businesses in your industry, step beyond building a strategy and put it into motion. You can do that with the right data and tools to implement those data-driven insights across your team:
- Equip yourself as the strategic decision-maker to direct your business to go after the markets that have the money and the need for your products
- Empower marketers to target their communications to specific segments of the market, leveraging data targeting and insights to not only choose the right audience, but develop a custom message that will resonate with them
- Give salespeople the information on their prospects and customers that enable them to identify farmers’ needs and determine the right product to solve those needs
When you push data to the edge of your organization, you empower everyone to make the right decisions quickly and efficiently. This allows you to not just talk about your strategy, but actually implement it to reach your goals.
To learn about how Farm Market iD can provide the insights to build your agribusiness strategy, watch the video and set up a time to talk to our team about MarketView.