The success of your product depends primarily on development.
What do we mean by this? Simply that alignment of the preferences of your target market with net delivered client value (NDCV)—and key activities across your organization—results in a successful product.
To achieve this victory, you must carefully vet every new product and/or service to ensure it meets a need your clients have, and delivers on the value they’ve come to expect from you.
In this post, we’ll talk about the 10 questions you should ask yourself when contemplating product development process changes.
1. Are all of your current products neatly categorized?
As you scale and add more products, categorization is key. This will help not only from a solutions-selling perspective, but also a staffing perspective. What’s one division today could split into two tomorrow.
2. Do you have a formal process for launching new products?
Without a consistent roll-out plan for your products/services, you risk leaving a vital audience in the dark—your sales team, marketing team, prospects, or current clients. Combat this by developing a sales playbook that outlines how to roll out new products and services.
3. What are the top 3 reasons a client should want your product?
If you can’t effectively define these, how can you expect clients to understand the value your product or service brings? Make sure you understand what problem this solves and why customers should care, then share it with your team.
4. Are your quotes detailed enough for procurement?
Think all the way through the sales cycle. Once orders start coming through, will the transition from sales to procurement be seamless? Make sure your product/service descriptions clearly describe what items/how many are being sold.
5. What is your cost for developing your products?
Unless you know this, you can’t manage for profitability. Factor in both soft costs (employee time) and hard costs (materials, consulting, and shipping).
6. How do you choose your partners and review their performance?
If you need to partner with other companies to produce and deliver your products and/or services, be sure to have a good vetting process in place to ensure you select the right partner for your business, and then review partner performance against the market routinely to make sure you’re getting a fair deal.
7. Who signs off on your product test plans?
While delegation is a wonderful thing, someone needs to be in charge of quality control. One tiny oversight now could cost you a lot of money later. Designate someone you trust to stress test plans prior to implementation.
8. Who has the authority to approve new products to market?
After all the testing is completed, someone needs to be in charge of giving the final green light prior to going to market. This should be a seasoned expert who understands the ins and outs of your audience, production process, and costs.
9. Do you track the ROI/GM by product?
If not, you should start now. Knowing which products are profitable, and which are eating into your bottom line can help you make tough decisions around how to adjust your product line for profitability.
10. When pricing, how do you measure net delivered client value (NDCV) for your products?
If there are comparable solutions on the market, what are those going for? How is yours different? By doing upfront research, you can ensure you’re not underselling your product or service.
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