There’s no denying that the age of “shop anywhere from anywhere” has changed everything, and the retail landscape of the past is no longer a familiar sight. Consumer preferences are constantly changing, competition is fiercer than ever, trends impacting business come and go, and staying ahead of all of this demands a business model that can keep pace.

But what does that look like? One thing is for sure: a strong model isn’t just about operations — it’s a strategic blueprint that aligns with your customer’s desires, market trends and operational efficiency. And so if your business has been operating at status quo for a while, the importance of considering a fresh business model to stay relevant, competitive and resilient in today’s dynamic business environment cannot be overstated.

But how do you know when it’s time to hit the refresh button? We’ll take you through five critical warning signs so you can assess your current situation and start making crucial changes to elevate your business today.

1. The Dissatisfied Customer 

A surge in customer complaints or a dip in satisfaction scores are undeniable red flags. A shift in purchasing behavior can also signify a disconnect with your target audience. Today’s consumers crave options that align with their modern shopping preferences — so if you have not been sensitive to those needs and notice a shift in customer behavior, it’s time to start shaking things up. 

To conduct a proper business model evaluation and gather customer feedback effectively, businesses can employ various strategies such as: 

• Implementing online surveys on their website or through email campaigns. 

• Conducting in-person or virtual focus groups with loyal customers. 

• Monitoring social media channels for mentions, comments and reviews. 

• Analyzing data from customer service interactions and returns. 

2. Stagnant Growth and Rising Costs 

Shrinking profits despite rising operating costs or flatlining sales is another sign that it’s time for a business strategy reassessment. Adapting might involve streamlining processes, embracing cutting-edge technologies or exploring alternative revenue streams. 

Performing a thorough cost-benefit analysis involves: 

• Identifying all costs associated with current operations, including fixed and variable expenses. 

• Estimating the potential costs of implementing changes or upgrades to the business model to improve retention rates. 

• Forecasting the expected benefits, such as increased revenue, cost savings or improved customer satisfaction. 

• Calculating the return on investment (ROI) for each proposed change to determine its viability and potential impact on profitability. 

3. Market Saturation, Shrinking Share 

A dwindling market share compared to competitors is a clear call to action. This could be a sign that your rivals boast a more compelling business model, or you simply need to find ways to stand out in a crowded marketplace. 

Conducting a competitor analysis is essential in such situations. A competitive analysis involves systematically evaluating your competitors’ strengths and weaknesses, as well as their strategies and performance in the market. By examining factors such as product offerings, pricing strategies, marketing tactics, distribution channels and customer service, you can gain valuable insights into how your competitors are positioning themselves and where you may have opportunities to differentiate your brand. 

Some ways to differentiate your brand include: 

• Developing unique value propositions that address specific customer needs or pain points. 

• Offering personalized experiences tailored to individual preferences or demographics. 

• Targeting niche market segments that are underserved or overlooked by competitors. 

• Innovating product features or designs to create a competitive advantage. 

• Implementing creative pricing strategies, such as value-based pricing or subscription models. 

• Enhancing customer service through exceptional support, accessibility or responsiveness. 

• Building brand authenticity and trust through transparent communication and ethical business practices. 

Through a comprehensive competitive analysis, you can identify untapped market opportunities and develop strategies to effectively compete and thrive in a saturated market. 

4. Outdated Infrastructure, Tech Lag 

Technology is a double-edged sword. Outdated systems can severely hinder your growth, while a modern approach can propel your business forward. Upgrading your infrastructure and leveraging the latest technologies significantly enhance the customer experience. 

Examples of technologies that can help refresh a business model include: 

• eCommerce platforms for expanding online sales channels. 

• Customer relationship management (CRM) software for better customer insights and engagement. 

• Data analytics tools for understanding market trends and consumer behavior. 

• Inventory management systems for optimizing supply chain efficiency. 

• Mobile apps for enhancing the convenience and accessibility of your products or services. 

5. Falling Behind the Curve 

Ignoring industry trends or advancements your competitors are embracing can leave you in the dust. Regularly analyzing your competition and staying attuned to market shifts are the cornerstones of a thriving business. 

To avoid falling behind the curve, businesses should regularly analyze: 

• Competitor strategies, including product offerings, pricing strategies and marketing tactics. 

• Emerging technologies and innovation trends within their industry. 

• Changes in consumer behavior and preferences, such as shifts toward sustainability or digitalization. 

• Regulatory developments that may impact industry standards or market dynamics. 

Acima Leasing and Lease-to-Own: Your Key to a Thriving Future 

The good news? Transformation isn’t just inevitable, it’s a catalyst for growth. Acima Leasing works with retailers just like you to offer a refreshed, innovative solution to incorporate with your business model. Our lease-to-own solution is more than just a shopping option for customers— it’s a strategic tool you can implement if any of these warning signs are happening in your business.

Acima Leasing can empower your business by helping make these a possibility: 

• Expand Your Customer Base: Reach a wider audience by attracting those who might not qualify for credit or financing. 

• Boost Sales and Revenue: Unlock new revenue streams and watch your sales figures climb. 

• Enhance Customer Satisfaction: Offer flexible options that resonate with today’s consumers, leading to happier and more loyal customers. 

• Increase Profitability: Reduce the impact of rising operational costs and experience a revitalized bottom line. 

• Stay Ahead of the Curve: Work with Acima Leasing to gain valuable insights and navigate the ever-changing retail landscape with confidence. 

By incorporating Acima Leasing’s lease-to-own solution into your business strategy, you’re not just adapting to change, you’re embracing it. Together, we can transform your business model, unlock its full potential and ensure it thrives in the face of any challenge.