According to IDG research new products are one of the most effective methods to grow revenue. IDG study results are:
30% – New products and services;
29% – Overall new team capabilities;
24 % – Better cross-sell and upsell ability;
22% – Better use of data;
22% – Faster product and service delivery;
19 % – New partnerships;
13 % – Territory expansion;
8% – M&A.
However, making new products can vary. The definition of a new product should be customer-centric, it should refer to what the customer considers new, to the new values customer accepts, and not what product design and engineering consider new.
Here are four strategies how new products can be created:
1) Completely new products. Example: BMW i Series.
2) Big changes to current products. Example: VW e-Golf.
3) Minor changes to current products. Example: Mercedes 2018 interior redesign.
4) Repositioning of old products as new only with content. Example: Ariel Share the load.
While making new products or updating old products can require high investments, especially in manufacturing businesses, the repositioning strategy can be very effective with a low investment. Additionally, content can be used to reposition many products, and not only one.
The only challenge can be in companies which do not use content, marketing, and new methods of sales, and instead of repositioning, they must update entire selling systems. This will definitely be demanding just as new product development, but it is still a necessary step.
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