Harnessing Demand Innovation(3 / 3)

■Startwithashort-termactionplan—Whileyouaredevelopingyourlong-termactionplan,therearesevenshort-termmovesyoucanandshouldmakerightnow:

Resegmentyourexistingcustomerbase—andseeifyoucanidentifynichesofcustomerswhohavespecialneeds.Considerwhetheryoucangenerateincrementalrevenue,cateringtothoseneedsbyofferinghigh-endservicesthatwillhavegoodprofitmargins.

Builddeepercustomerrelationships—andseewhetheryoucandevelopnewservicesthatwillbetterresolvetheirproblems.Lookforwaystoincreasehowmuchcustomersspendwithyoubyofferingnewservicesandproducts.

Replicateyourbestcustomerrelationshipswithyourothercustomers—andconsiderwhetheryoucanmoldthisintoanewwayofdoingbusinesswitheveryone.Havethepeoplewhocurrentlyhandleyourbestcustomeraccountsteachyourotherstaffwhatthey'redoing.

Usevaluepricingpractices—thatis,breakanall-inclusivepriceintocomponentpartsandthenchargefortheadd-onservicesyoupreviouslyprovidedforfree.Oralternatively,youmightusethisinformationtodemonstratetocustomersthetangiblevalueyouareproviding.Seewhethertheseideasbringothernewpricingpossibilitiestothefore.

Movefrommakingproductofferstomakingsystemoffers—byintegratingyourstand-aloneproductorserviceintoasystemthatworkstogetherseamlessly.Youmaybeabletoworkwithastrategicpartnerandgetyourproductorservicefine-tunedtotheproductstheysellinthemarketplace.Withanyluck,youmaybeabletochargeapremiumpricebecauseyourproductispartofanintegratedsystemthatgeneratesaddedvalueforthecustomer.

Wrapvalue-addedsupportingservicesaroundyourproduct—therebyallowingyoutoaddressnext-generationcustomerneedsaswellasincreasingyourproductdifferentiation.Byincorporatingservicesintoyouroffering,forexample,youmaysignificantlyenhancetheperceivedvalueoftheoverallbundle.

Emphasizetheemotionalandaffinityaspectsofyourbrandmore—andredirectyourbrandequityinvestmentstosupportthis.Communicatetocustomerswhatyoustandforandwhereyou'recomingfrom.

Fortunately,manyoftheseshort-termmoveswon'tevenrequirethatyouwaitforapprovaltostartactingon.Theywillalsostartgeneratinggrowthwhilealsoprovidinganopportunityforyoutolearnabouthowtomanagegrowthinitiatives.Allofthesebenefitsareworthwhileandattractivewhileyoudotheresearchneededtocomeupwithyourcomprehensivelong-termgrowthplan.

■3corequestionsinbuildingacomprehensiveactionplan—Onceyougetthoseshort-termmovesinaction,youcanthenbuildamorecomprehensiveactionplan.Thisplanwillcenteraroundtheanswerstothreemainquestions:

·Whatisourcurrentannualrateofgrowth?

·Whatshouldwesetasatargetannualgrowthrateinthecomingyears?

·Whatshouldwestartdoingnowtoclosethegapbetweenourcurrentrateofgrowthandourtargetrateofgrowth?

■Getspecificaboutgrowthinitiatives—Nowisthetimetogetmorespecificaboutthegrowthinitiativesyouneedtotaketocloseinonyourtarget.Ingeneral,mostgrowthprojectswillfallintooneoffivedifferentcategories:

·Traditional—Thesearethegrowthstrategiescompaniesinmatureindustriestypicallyusetoincreaserevenuesandprofits:

Acquisitions

Internationalexpansionofoperations

Priceincreases

Costcutting

·Enhancedproductposition—Thesearethewaysgrowthisusuallyachievedinlessmatureindustries:

Developmentofnewproducts

Extensionofexistingproductlines

Attemptsatdifferentiation

·Transitional—Thesearetheshort-termstrategiesalreadymentionedthatcanbecharacterizedasbeingcustomercentered:

Resegmentyourexistingcustomerbase

Builddeepercustomerrelationships

Replicateyourbestcustomers

Usevalue-basedpricing

Offersystemsratherthanjustproducts

Wrapservicesaroundproducts

Affinitymarketing

·Newgrowth—Thesearethenewskillscompaniesarejustbeginningtolearnaswaystoaddorcreatenewvalue:

Product/serviceintegration

Bundledsolutions

Value-addedoutsourcing

Moredownstreamoffers

·Information—Thesearethekeygrowthareasofthefutureascompaniesmonetizetheinformationassetstheyhave:

Integratedinformationofferings

Performanceguarantees

Saleofinformationtothirdparties

ExternalizedITinvestments

■Takeaction—Thechallengethenbecomestostart,fund,manageanddeliveronavarietyofgrowthprojectsrightacrossthespectrumofdifferentcategories.Toconsiderthisissue,askkeyquestionslike:

·Isourgrowthplanaggressiveenoughtomeettheorganization'soverallgrowthtarget?

·Havewebuiltinabufferfortheunexpecteddevelopmentsofthefuture?

·Doesourplanmakesense?

·Istheplanpracticalandcapableofbeingimplementedgivenallofourtimeconstraints,resourcebudgetsandotheractivities?

·Isourplanrealistic?

·Arewetakingasound,balancedapproachtocreatingourownfutureratherthanleavingeverythingtochance?

·Whatkindofinvestmentsarewemakingtodaythatarealignedwiththisplan?

·Wherearethemostambitiousandskilledpeopleinourorganizationcurrentlybeingsent—andwhereshouldtheybeassignedinthefutureifwearetoachievethisplan?