The value of product focus

During the past year, customer preferences and the business environment have been turned upside down

Research shows there is more uncertainty to come as we steer towards the new normal. Times are unprecedented and many experts appear to be cautiously guessing what will come next. As a Business Mentor in Surrey & Berkshire, I connect with lots of business owners. One of my business connections operates as an entertainer and experienced a boom during lockdown when he quickly turned to offering online shows. However work has dried up completely now restrictions are being eased. Reason? Because people are reluctant to book online events if they can have these in person. As restrictions are easing gradually, people and companies are waiting until they are certain restrictions are eased sufficiently to allow the in-person event they want to book. And the result for my connection is that his order book is empty for the time being.

How to prepare for situations like this?

A good rule is to listen to your customers and ensure your offering is flexible enough to sustain these changes. However another insight is very valuable, and this is the product segmentation. Each business will have products/services which are their core business and external factors will have little impact on them. Then there will be the ‘Question Mark’ product that is waiting to be discovered. Ensuring these are identified within your organisation will provide valuable insight. It will determine marketing spend and ensure sales efforts are targeting the right product to ensure effective sales.

During uncertain times, these types of decisions are even more important to any business.

Going back to my entertainer connection, he is unable to do his corporate events, weddings etc (his ‘Cash Cows’) for now, but he is still offering smaller online events to his friends, family and former customers. By doing this, he maintains his skill and secures income coming in. This still allows him time to focus on marketing his primary events business, so he can secure future bookings. The income from the temporary service is low but so are his marketing efforts and input.

If you wish to discuss how your products and services are segmented or want support in making decisions around your offering, please contact me for a complimentary mentoring session without obligation. A different perspective is always valuable especially when provided by a Business Mentor with your best interests at the forefront of every action.

 

Anne Williams

Director & Business Mentor

Wokingham, Maidenhead, Windsor, Runnymede, Weybridge, Bracknell, Slough

https://www.ukbusinessmentoring.co.uk/business-mentor-anne-williams/

 

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