Growth “Strategies” Small Businesses Must Avoid

Growing or scaling is one of the core aspects of running a small business. Most business owners CBS Corporate Business Solutions have come across invest a lot of time and money for their companies to grow. There are definitely legitimate growth strategies, and sometimes “hacks,” that small businesses can use to grow. Then there are certain tactics that our consultants strongly advise small business owners to avoid. Here is a list:

Signing up customers to email lists without their knowledge – If a customer is on a company mailing list, then that person should have signed up for it themselves. Some companies use a shady tactic where customers who provide their email address are signed up for mailing lists without their knowledge. While this is not technically illegal, it’s a horrible practice that should be avoided. The customers will not be happy about getting email newsletters they didn’t sign up for. It will, in fact, have the opposite effect. Instead of a customer being more attached to a business, the customer will very likely learn to avoid the business.  Moreover, Congress passed an anti-spam law which imposes certain requirements on businesses engaged in email marketing.  The CAN-SPAM Act of 2003 is a spam law that established the national standards for sending commercial email (which is different from transactional or relationship email) and providing guidelines for sending behavior, content and unsubscribe compliance. To follow the guidelines in place, you must include a visible and operational unsubscribe option in your commercial emails, a legitimate physical address of the company, accurate “From” information and subject lines, and you cannot send to harvested email addresses.

Adding customers to social media groups – This is a similar tactic to auto-signing up people for email lists. Don’t add customers to Facebook groups or similar social media networks without their explicit consent. People do not like getting random notifications. It may even lead the customers to complain about your company’s practices to social media site owners. That is definitely not a position a brand wants to be in.

Aggressive selling from the get go – If an interested person signs up for an email newsletter or like the brand’s Facebook profile, don’t target that person as a potential customer right away. Don’t start trying to push products on the potential customer. The interested party needs to get used to the brand and build a trustworthy connection before he or she buys a product. If the business starts to aggressively sell right away, this connection will be severed right away.

Posting fake statistics – Companies do get a lot of leeway when it comes to making marketing claims. However, don’t push it. While some exaggerations may be acceptable, don’t try to paint these exaggerations as actual fact. You may call your brand the number one in the field, but don’t make up statistics or studies to “prove” a claim like that. Don’t post fake statistics about customer satisfaction levels, various “scores” for products, and so on. These will only be lies and your long-term growth plan will only get hurt.  Moreover, using fake statistics is not considered harmless by state Attorney Generals who are charged with protecting consumers against businesses making false claims. Such claims are prohibited by consumer protections statutes against misleading advertising and also under general business statutes involving unfair business practices.   For legitimate techniques a small business can use to promote growth, consult with a Corporate Business Solutions expert.

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