Locking your customers in for more business.

This strategy is quite simple. The more you can lock customers in for repeat business the better your company will do.

Let’s start with a high profile example of this growth strategy. Marissa Meyer took over as CEO of Yahoo roughly two years ago back in 2012. Since then Yahoo has acquired 37 companies and counting. Her strategy is to keep adding various services from mobile technologies such as Aviate, to social media such as Tumblr, in order to keep Yahoo users coming back on a daily basis. By creating lock-in Mayer is increasing Yahoo’s value to advertisers which is where the real revenue comes from. If a company allows a situation wherein customers have to go elsewhere for an important product or service there is an increased risk of losing them permanently.

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