Launching a New Product, or Service - What You Need To Know

You can get insurance for pretty much everything -  even very risky activities such as parachute diving and stock car racing.  But you cannot get insurance in respect of launching a new product, or service.  Why?  Well, because the risks are simply too high.

Now, at this time when innovation is so important, pointing out the risks is not meant to deter individuals or companies from launching new products, but to prepare them for the road ahead. 

This list  of what you need to know before you decide to launch a new product, or service has been inspired by a piece written by start-up guru Brian O Kane.

1. It is going to take a lot longer than you think and more time and money too.

2. The chances of a set-back, or a false start, are great.  There is a risk of your won't get off the ground at all!

3. Your plans are how you want it to be and they are a good guide.  But that is not how it will work out.

4. If you hire somebody for the job of selling, it more than likely won't work out – either way the success will still depend on you.

5. The customers you imagine for your solution, are probably not those who need it most

6. People don't know they need your solution, they probably don't even know you exist.

7. You need selling more than marketing, because months down the line you will be complaining that you are not getting to see enough potential customers.

8. Having the best solution doesn't guarantee success.  In fact, nobody important cares about your features and technology.  What your product does, is more important than how it does it.

9. People won't believe how good your solution is, unless your customers say so.  So don't write brochures, write customer success stories.  Oh and that means getting your first satisfied customer as a reference site is key.

10. You are going to struggle to be objective, unemotional and rational about your new product, or service.  That is one of the biggest threats you face.

11.  Success is a confluence of factors, many of which are outside your control.  That is why people say timing is everything.

12. Market resarch may well lead you astray, as keep you on track.

13.  Ironically, the more you think your solution appeals to everybody, the more difficult it will be to market, and the most costly to develop.  You will be tempted to add in more features and more complexity than is necessary.

Do you really know your competitors?

Our research suggests that 8 out of 10 sales people don’t know enough about their competitors. Unknowingly that limits their ability, or confidence when it comes to selling. But it is not just sales people that fail to banish confusion among choice-spolit buyers and clearly communicate how their companies are different. It is other people like marketing managers, sales managers and CEOs too, as well as the web sites, presentations and brochures that they use to communicate to customers and prospects about their business.

Why it is important

First your prospects want to know what you can do for them. Second they want to know how it is better than what your competitor has promised. And although you cannot attack your competitor directly (badmouthing the competitor will do you more harm than good) you have to clearly position your company as better than your competitor in terms of some benefit that is important to your customer. This of course presupposes that you know enough about your competitors!

So what is your competitive edge

So what is your X Factor relative to your competitors? What is you compelling competitive advantage? Is there a competitive moate around your business? That is another way of asking if your advantage is sustainable.

Knowing your competitors is essential to maintaining maximum competitive advantage, that includes understanding:

• Your competitors' products and services – their strengths and weaknesses, features and benefits.
• Their reputation for customer service and support.
• Your competitors' sales and marketing plans.
• The loyalty of your competitors' customers.
• How a customer rates your competitor after their solution is in place.
• How well your competitors meet implementation schedules.
• Which accounts your competitor uses as references, including poor references.