By Listening To Your Customers
Innovation is what keeps new businesses alive, fresh, and ahead of your competition. If you aren’t periodically adding new products and services to your line then customers may run out of reasons to be customers. Keep them invigorated and excited about doing business with you by developing new products and services, here’s how:
Listen To Your Market
Your customers are likely sharing information and stories with you. Take the time to actually listen to them. You’ll be surprised what they have to say and how that information can be used to create new products and services that you know will succeed because your customer has already told you they need it. In addition to simply opening up your ears, you can use a variety of tools to ask your customers what they need. Surveys, blogs, forums and even the gold old fashioned suggestion box can be used to communicate with your customers about how you can better meet their needs.
Provide Value
One of the steps in becoming an innovative business is to look for opportunities to increase your sales. What problems are your customers dealing with and how can you solve them? Any product or service that directly benefits your current customers will have a strong chance at success.
For example, Apple had the innovative iPod product to start and in their line of products and services they have many accessories and services for iPod owners. However, true innovation occurred again when they created the iPhone. It was designed to meet the needs of folks who were tired of carrying around multiple devices. Now they have an iPod and a phone, and even a planner, in one device.
Taking the time to consider what your customer’s current problems are will help you brainstorm innovative products and services to serve as a solution.
Look At The Process & Fill In The Gaps.
Another excellent way to brainstorm a new product or service to add to your existing business is to look at your customer’s buying process. What do they do before they buy from you and what do they do after? Perhaps you can fill in the gaps and offer a product or service that meets their needs.
For example, if you’re a fitness instructor then before people come to you for coaching and instruction they buy a pair of shoes, you could offer a guide on how to find the best shoes for your foot. If they tend to sign up for a race after completing instruction with you then you could offer a guide to the best races around the world and offer travel tips, race day tips and even guidance with accommodations.
True innovation comes from taking a look at your customers’ needs, wants, and desires and exploring how you can meet those needs or fulfill their desires – sometimes even before they know they’re a need!
Brand extension can be lucrative but it is also risky and can cause brand dilution. My rule of thumb is only extend the brand if the products are closely related.