Whether you're focused on adding new revenue opportunities or expanding your marketing reach, launching a new product or service that is simple and useful and compliments your core offer could give you the lift you’re looking for to round out your marketing strategy.
Here are six business goals that can be achieved by launching a new product.
1. Increase Your Income
Your existing products and services are selling well, and you need to find ways to leverage your brand and add revenue to the top and bottom lines. If this is one of your goals, start by forecasting how much revenue growth you’re planning to add. Also consider if you’re looking for short-term or long-term growth.
If you haven’t added a new product or service in a while, deciding to add one now as a part of your strategy to meet revenue growth goals can help you accomplish two things.
First, you increase the share of wallet you’re getting from existing clients. Second, you release some pressure from the existing products to perform better and create more growth runway. (Grab a free Cash Flow and Revenue Model template here to use for your revenue goal forecasting.)
2. Declare Your Market Position
When you have clarity on your niche market and your aim is to declare to the world that you’re the best option available to solve a specific problem, you can use a new product launch to establish the identity or image of your brand that you want the market to perceive.
An example of this can be found at a company called The Sill. The Sill is a plant store with a few brick-and-mortar locations and a thriving e-commerce store. The company sells many of the same plants you may find at your local hardware store, but it’s added a service of informative online workshops that help plant buyers keep their purchases alive, helping ensure they haven’t wasted their money.
Check out the website here to see how The Sill is charging for an additional service that establishes the company as an expert in the eyes of their target market.
3. Monetize Your Free Services
This is a situation in which service providers can easily find themselves. Whether you’re a personal trainer, an interior designer, or a pet groomer, your service has a start and an end.
If you find that clients are routinely getting more than your contract promises, find the commonality in what you’re giving away for free and monetize it by creating a service.
For example, if you’re an interior designer and you find your clients routinely ask for one of the bedrooms to become a baby room while you’re in the middle of the job, create a “Baby Room” add-on service and let them know from the beginning that this is available to add on to the scope should the need arise, but that otherwise, a bedroom design is not a baby room.
If you’re a pet groomer and people end up leaving their pets for hours after the service is over, create an add-on charge for pets left for more than 30 minutes after the service is over and let clients know this when they drop off their pets.
4. Solidify Your Brand and Establish Authority
When your customers are looking to fill a need and your company has a solution, are you the first brand that pops into their mind?
Have you sufficiently entered the conversation that is going on in their head so that their sentences end with, “Let’s look these guys up and see what they have to solve this __________fill in the blank.”
If your marketing plan includes deepening the trust your clients have in you to solve a problem, you may want to launch a product that solves a specific problem so well that they don’t want to go anywhere else.
It doesn’t need to be a big audacious launch; it can be something simple and small. Think of the first phone case that was launched to protect a phone from breaking when it’s dropped. It is not as complicated as a phone, but when it works well, it creates trust in the brand.
If you offer a service, do you go the extra mile by helping the client set up for the next logical step they’ll need to take when your service is complete? What small service would serve as that bridge and gain trust that gives you authority?
5. Revive a Dying Product or Service
If you have a product that is no longer producing meaningful sales, your marketing plan needs to address this to determine what you can do to turn it around or evolve it into something new.
This is a great opportunity to engage or re-engage with your clients who have been using your product or service for a while.
As you discuss their experience, focus on the benefits they received and why this was important to them but no longer is. See if you can understand what new stage they’ve entered and how you can grow with them.
Take this new information and develop a new product or service that clients will want to buy as an upgrade or a replacement. Your customers will be impressed by how you take their feedback and continue to meet their needs.
6. Grow Your Fan Base
If you need more eyeballs, you can launch a product in a way to get attention for your brand. In this case, it could even be free and function like a lead magnate.
An example of how marketers may do this is through how they promote a new book. They may give 1,000 copies to various influencers who share their target audience and ask them to do a social challenge and give away their books so that they grow their own fan base in a targeted way.
This is a place where you can let your creativity fly. Set a budget that makes sense for you and that is in alignment with how big you’re aiming to grow your fan base and brainstorm all the assets you have (products, services, content, books, speeches, etc.) and come up with inexpensive ways to get the word out.
The Bottom Line
Developing marketing plans and strategies is a fun part of being a business owner when you tap into your creative side. Think outside the box about how launching a new product or service can complement your social campaigns and events and make the whole plan stronger on a path to meeting your goals.