Every product has a life cycle. Whether it is a tshirt for a single event, this season’s fashion, or a widget that lasts for years, products will eventually lose their market as something new comes along.
The same thing can be said for services. Even if you in the service industry as a CPA, general accounting services is not enough for customers. They want tax help and preparation, financial planning consulting, cash flow recommendations, etc.
Thus, as a small business owner, you must always be prepared to update your current products or services and even create new ones. But how do you know what will sell? There is no better resource to answer that question that directly from your customers.
In the normal paradigm of a new business product, an entrepreneur comes up with a product idea, starts a business, and tries to help it grow. But in this paradigm the product is conceived before it is even known if it will be successful. Now, a good entrepreneur will perform the necessary market research during which it may be determined that the product is not viable.
However, you as a business owner and entrepreneur can save a lot of money and time if you get that valuable market research before a new product is even developed.
Your customers are ultimately the people whose opinion matters. They are the ones who determine the need or want for a specific product or service. And if you operate a small business with a desire to grow and expand, you need their help to know what products and services will sell.
How to Get Your Customers Involved with Your R&A
So what strategies can you use to get your customers to help you with research and development before a product is even on the drawing board? Here are a few suggestions.
Suggestions for new products/services
Remember, the success of a product is based on the demand of the market. Since your customers are the market, let them tell you what they need. You can always talk to them face-to-face through informal polls and keep track of the answers. You can also use your customer contact list to send out surveys, asking what types of products or services they would like to see from you.
Another great idea that many businesses like Starbucks is implementing is creating an entire website for customer input. Starbucks developed MyStarbucksIdea.com to be a general clearinghouse for suggestions. With the tens of thousands of ideas submitted, Starbucks has the instant market analysis of what customers want to buy.
Suggestions for product improvements/modifications/enhancements
Like new product or service ideas, you can also survey your customers about how you can improve your products. This is a great way to help extend the total life cycle of a product.
Service quality feedback
Keep in mind that consumers don’t just buy products they need and/or want; they buy them from companies they trust. If your business has unspecified service failings, you could be losing business. Find out from your customers where your service could be improved, and take steps to implement changes that will impress customers.
Testing new products
While customers may be one of the greatest resources for new product idea, they are also invaluable as test subjects. Consider giving free samples of newly developed products to see how customers react. Of course, make the caveat that the product is free with the exchange of valuable feedback.
Pricing tolerance
A product or service that is needed or wanted by your consumers is no good if it is not priced properly. If it is unaffordable, it just won’t sell. Your market determines the price. Also use your customers give valuable feedback as to what pricing is tolerable for them for your new or improved products.
Tapping your customers for product ideas and improvements is one of the best ways you can expand and grow your business. Let your customers determine the market and build your products and services according to the needs and wants of the consumer.
