Charting Your Path to Growth in 2024 Starts Today. Here's How to Prepare for a Prosperous New Year. This article includes tips for securing and delivering incremental growth in the face of continued financial apprehension.

Summer just ended, and here we are, knee-deep in the excitement of 2024 planning. It feels funny to reflect on a year that's only 75% over, but to chart our course for next year, we need to understand what's happened in 2023 thus far so we can adapt appropriately.

With that, let's dig into a bit of recent history – and then we'll explore what that means for 2024 priorities.

2023: A year of caution

If there's one word that can describe this year's business decisions — it's cautious. And for good reason. Rising interest rates created uncertainty in the marketplace, and inflation remained elevated and unpredictable. In response, many businesses took precautionary measures to preserve cash flow, including the following safeguards:

1. Heavily scrutinized discretionary spend: Especially when it involved new initiatives. With limited dollars in the "testing/experimental" budget, nobody wanted to be that person who tried something revolutionary and failed to create an ROI. Brands hesitated to pursue new endeavors, sticking instead to tried-and-true tactics.
2. Stashed cash as a contingency plan for "what if" scenarios. Many CFOs held onto cash in 2023 to ride out the uncertainties in their own businesses, the U.S. economy and the world. This meant piecemeal budgets for marketing, IT, and other departments that were left with just enough funds for maybe one or two critical initiatives throughout the year.
3. Prioritized profitability over growth. Often, this translated to pricing increases, and in some cases, it also meant more vendor evaluations and request for proposals (RFPs) than in a typical year.

For better or for worse, 2023 was undeniably a year of caution. But, in some ways, it could also be considered a cautionary tale. A recession remained at bay, and inflation has maintained at a relatively tolerable rate of 4% or below since May. From what I've observed, the brands that held too tightly to their cash are now playing catch-up to those who dared to make strategic investments.

Making a bold change in today's environment can be challenging – and it's not without risk. But there are ways to do it that can keep all stakeholders happy while moving the business forward. That brings us to my 2024 recommendations.

Related: Keys to Planning for Smart Business Growth

2024: A year for focus

Don't worry, I'm not about to ask you to suddenly throw all caution (and wads of cash) to the wind. But I will suggest that you find creative ways to make progress. Here are three tips for securing and delivering incremental growth in the face of continued financial apprehension.

1. Think small and nimble. A complete commerce platform revamp might not be in the cards this year, but you can still make progress on a smaller scale. Define what you'd ideally achieve with a large-scale initiative, then look for ways you can work toward the same outcome with lower-investment projects. That might mean, for example, a U.S. rollout instead of a global launch. You'll make meaningful progress on improving the experience, and if the initiative is successful, it can help fuel and fund expansion.
2. Double down on math. Promises of improvement aren't enough for 2024 – you'll need exact figures for a project's expected impact to secure buy-in and budget. It's time to buddy up with your analytics team to create financial models and projections that allow your CFO to effectively weigh the project against others fighting for funds.
3. Focus on customer volume as a catalyst for change. When brands want profitability, they often focus on their current customer base – how to convert more of them, more frequently, at a higher average order value. However, an influx of new customers can be a strong motivator for doing things better, and it creates a good foundation for longer-term business health. Build up customer acquisition efforts to create a case for new investments, especially initiatives that fuel loyalty and experience upgrades that can capitalize on your expanded audience.

We may continue to see more RFPs and shopping around in 2024 as brands reevaluate their costs. If you find yourself on that journey, be sure to look for a partner who shares your vision and values. A lot of partners will show you pie-in-the-sky roadmaps – and that's fine, there's nothing wrong with being aspirational. But make sure they're also listening to your goals and ambitions for the year ahead so you can work together to make tangible incremental gains.

While 2024 might not be a year of perfection, it can (and should) be a year of progress. With the right approach, you can advance your business down the path toward customer experience transformation despite your budget constraints.