Expanding into emerging markets offers tremendous growth potential.
Businesses constantly seek to expand their operations into emerging markets as they offer tremendous growth potential.
Conventional sales strategies may not be effective in these unique environments, giving rise to challenges.
Niche sales strategies can assist sales teams in comprehending the nuances of these markets and developing effective sales strategies.
Sales Teams Leverage AI for Niche Market Expansion
Emerging markets are characterized by rapid economic expansion, the rising middle class, and increasing consumer demand. These markets are distinguished by their distinct cultural, economic, and regulatory environments.
In many emerging markets, personal connections play a role in business transactions. In addition to data-driven sales strategies, businesses must concentrate on gaining the trust of prospective customers.
As per research, businesses investing in niche sales strategies in emerging markets can expect an average revenue growth of 6% annually, compared to just 1% when focusing solely on developed markets.
Let us look at two sales strategies often used:
1. Hyper-localization involves developing sales strategies specific to the local market, considering language, culture, and consumer behavior.
Case in point, H&M’s campaign in Amsterdam focused on the desires of the regional customers. They offered repairing, altering, and renting servies, and also solutions to their environmental concerns. It put the brand at the forefront of the sustainability conversation.
2. Market segmentation divides the market into smaller segments based on age, income, and lifestyle and develops sales strategies tailored to each segment.
Case in point, Nike succeeded in China by focusing on younger consumers interested in fitness and health.
Additionally, emerging markets are expected to contribute around 65% of global GDP growth over the next decade, highlighting their enormous potential.
Businesses are leveraging big data analytics, ML, and AI technology platforms to identify niche emerging markets to develop sales strategies.
Case in point, Amazon uses ML algorithms to identify emerging trends in emerging markets, especially the Indian market to develop targeted sales strategies.
Sales intelligence can provide valuable insights to sales teams to create effective sales strategies and expand into emerging markets. Let us what sales intelligence can do:
- Identify target prospects: Sales intelligence enables sales teams to identify high-value prospects based on their demographics, company size, industry, and other factors. This can help sales teams to focus on prospects most likely to convert.
- Understand prospect needs: Sales intelligence can provide valuable data on a prospect’s needs and preferences based on their online behavior, social media activity, and other digital footprints. This can help sales teams tailor their messaging and positioning to resonate with the prospect’s needs.
- Analyze competition: Sales intelligence can help sales teams analyze competitor activity, pricing, and messaging for sales teams to identify gaps in the market and develop sales strategies to differentiate themselves.
- Monitor market trends: Sales intelligence can provide valuable insights into market trends and consumer behavior. This can help sales teams adapt their strategies to changing market conditions.
- Measure performance: Sales intelligence tools can provide real-time data on sales performance, including lead conversion rates, deal size, and other key metrics. This can help sales teams track their progress and identify areas for improvement.
Thus, sales teams can use the above insights to gain a competitive advantage. Fortune 500 companies like Oracle, Microsoft, SAP, Salesforce, and IBM have been using sales intelligence to develop sales strategies in emerging economies.
Oftentimes, sales teams may not be able to overcome cultural, economic, and regulatory barriers and effect rapid sales growth with traditional niche sales strategies in emerging markets.
AI-driven sales intelligence provides insights to sales teams into the local markets, their unique challenges, and opportunities.
With these insights, sales teams can unlock immense potential and achieve sustainable long-term growth.
Additionally, with effective training, communication, and collaboration with local partners and stakeholders, they can set themselves up for growth.
Sales intelligence platforms like Draup for Sales have helped sales teams understand the local market, identify partners, and accelerate revenue and growth.
Its Industry Intelligence solution helps sales teams identify emerging use cases and competitors’ initiatives and generate B2B leads with an ML-based recommendation engine.