The 7 drivers of growth that every business should understand

Many business owners focus heavily on increasing sales. But revenue alone does not guarantee growth.

A business can generate strong turnover and still struggle with low profit margins, weak cashflow or unsustainable operating costs.

The good news is that improving profitability is not always about finding huge numbers of new customers. In many cases, small improvements across key areas of the business can make a significant difference.

This article explores Davies Okeowo’s seven drivers of growth as highlighted during his recent webinar. Davies is the Founder of Pitch Hub, which supports founders, institutions, and investors with structured approaches to preparing businesses for capital. 

Why profit matters more than many businesses realise

Profit is what allows businesses to reinvest, grow and build resilience. Without profit, businesses often remain static.

Profit funds:

• Recruitment
• Marketing
• Equipment and technology
• Product development
• Expansion into new markets
• Financial stability during quieter periods

That is why understanding the drivers behind profit is so important.

Driver 1: Price

Pricing is one of the biggest levers a business can adjust.
Your price needs to reflect the value customers perceive while still leaving enough margin to support growth.

Many businesses underprice themselves because they worry customers will leave.

But low pricing can create pressure elsewhere in the business, especially if costs rise.

Businesses should regularly review:

• Competitor pricing
• Customer expectations
• Profit margins
• The value their service delivers

Driver 2: Volume

Volume refers to how many units customers buy at one time.
Increasing volume does not always require new products.

Simple tactics can encourage customers to buy more during each transaction.

Examples include:

• Multi-buy offers
• Bundles
• Free delivery thresholds
• Limited-time promotions
• Suggested add-ons

Even small increases in volume can improve profitability over time.

Driver 3: Frequency

Frequency is how often customers return to buy from you.

Businesses that stay visible and maintain regular communication are often more successful at encouraging repeat purchases.

This could include:

• Email newsletters
• Loyalty programmes
• Exclusive offers for existing customers
• New product launches
• Useful educational content

The key is to stay relevant to your customer without constantly pushing sales messages.

Driver 4: Order size

Order size is slightly different from volume.

Volume focuses on buying more of the same product.

Order size focuses on increasing the range of products or services customers buy.

For example, a business selling camping tents could also offer sleeping bags, cooking equipment and accessories.

Businesses can increase order size through:

• Complementary products
• Upselling
• Cross-selling
• Product bundles
• Tiered packages

Driver 5: Retention

Keeping customers is often more cost-effective than constantly acquiring new ones.

Strong retention improves customer lifetime value and creates more predictable income.

Businesses can improve retention by:

• Delivering consistently good customer service
• Communicating regularly
• Responding quickly to issues
• Continuing to add value after purchase
• Understanding changing customer needs

Retention is closely linked to customer experience.

Driver 6: Customer acquisition

New customer acquisition is still important.

However, businesses should focus on attracting the right customers rather than simply increasing traffic.

That starts with understanding:

• Who your ideal customer is
• Where they spend time
• What problems they need solving
• What messaging gets their attention

Businesses that understand their audience deeply are often more efficient with their marketing.

Driver 7: Channels

Channels refer to where and how customers can buy from you.
Expanding channels can increase visibility and reduce reliance on a single source of sales.

Examples might include:

• Ecommerce websites
• Online marketplaces
• Social commerce
• Pop-up events
• Retail partnerships
• Subscription models

The right mix of channels depends on your audience and your business model.

Why small improvements matter

Businesses do not need dramatic changes across all seven drivers.
Even small improvements across multiple areas can compound into significant growth.

For example:

• A slight increase in pricing
• More repeat purchases
• Better customer retention
• Higher average order values

Together, these can transform profitability over time.

Final thoughts

Growing profit is rarely about one single tactic.

The strongest businesses continually review how customers buy, how often they buy and how much value each customer brings over time.
By focusing on these seven drivers, businesses can often unlock growth opportunities using the customers and resources they already have.

That can create a more sustainable business model and reduce the pressure to rely entirely on external funding or investment.